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A company has enquired whether rehiring employees previously dismissed via a temporary work pool would affect their exemption from redundancy pay. The Directorate-General for Traffic (DGT) indicates that new hiring within three years creates a presumption that no real termination of the employment relationship occurred.
Companies must be cautious when rehiring former employees within a three-year period, as this may invalidate the exemption from paying redundancy compensation if the dismissal is deemed not to have been a genuine termination.
The tax team reviews your specific situation.
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