Doctrine by topic · DGT Observatory

Related Company: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 20 rulings · 2014–2026

Current position

The exemption of severance pay requires a real and effective severance of the worker's relationship with the company. The non-existence of such severance is presumed if the worker provides services to the same company or to a related company within the three years following the termination. This presumption allows for evidence to the contrary to demonstrate that the new relationship does not invalidate the original severance.

The DGT's position has remained constant since 2014, focused on the presumption of lack of severance upon re-hiring in related companies within a three-year period. The doctrine has specified that the nature of the new contract is irrelevant and that the severance must be real even outside the scope of the presumption.

Turning points

  1. V3234-19

    Clarifies that the type of contract, whether employment or commercial, is irrelevant for the application of the presumption of lack of severance.

  2. V2781-23

    Establishes that the severance must be real and effective even if the new hiring is in an independent entity where the three-year presumption does not apply.

Analysis based on 20 of 20 rulings with a stated position. Updated 25 September 2026.

Rulings on this topic

20

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