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A worker inquired whether their exemption from severance pay remained valid after receiving a commercial contract offer from the same company. The Directorate-General for Traffic (DGT) ruled that a real severance of the employment relationship is presumed not to have occurred if services are provided to the company or an affiliated entity within three years following the dismissal.
This ruling clarifies the criteria for maintaining exemption from severance pay, highlighting the risk of losing such benefits if a new professional relationship is established with the same or related companies shortly after dismissal.
The tax team reviews your specific situation.
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