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V0951-17 ·17 April 2017 ·consulta-vinculante Medium impact
Tax

Rejoining a company within three years may invalidate dismissal compensation exemption

A query was raised regarding whether the exemption from dismissal compensation remains valid if a worker returns to the same company after two years. The Directorate-General for Traffic (DGT) indicates that returning to work for the company within three years creates a presumption that no real severance of the employment relationship occurred.

In 5 key points

How it affects those involved

This ruling affects companies planning to terminate employees to avoid compensation payments, as re-hiring them within a three-year window could trigger legal obligations to pay the original severance.

Lifecycle

2017-04-17PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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