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V3255-20 30 October 2020 · SG de Tributos Criterion in force
OTRO · embargo

Severance pay is not subject to minimum wage attachment limits

A query was raised regarding whether severance payments for the termination of employment contracts must comply with the attachment limits applicable to wages and salaries. The Directorate General for Labour (DGT) has ruled that these amounts do not constitute salary and therefore do not benefit from the limits set out in the Civil Procedure Law.

The question raised

Whether a seizure should be carried out on the indemnity for termination of the employment contract.

The DGT's ruling

The seizure limits set forth in Article 607 of the Civil Procedure Law (LEC) apply exclusively to payments considered as salary, wages, or pensions. Pursuant to the Workers' Statute, severance pay for dismissal or termination is not considered salary. Therefore, termination indemnity does not benefit from the seizure limits applicable to wages.

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