Exempt compensation derived from the termination of special labor relationships
Senior management staff
Regulations: Art. 2.1.a) Workers' Statute
Compensation for dismissal of high management personnel is regulated in article 11 of Royal Decree 1382/1985, of August 1, which establishes, in section one, for the case of termination of the contract due to withdrawal of the employer that the senior manager will have the right to the compensation agreed in the contract and, in the absence of an agreement, the compensation will be equivalent to seven days of salary in cash per year of service with a limit of six monthly payments.
The amount of compensation set in these cases ( 7 days with a maximum of 6 monthly payments ) is exempt in accordance with the interpretative criteria established in ruling 1528/2019, of November 5, of the Second Section of the Contentious-Administrative Chamber of the Supreme Court.
Specify that the ruling of Sentence 1528/2019 is based on the doctrine established in the ruling of the Plenary Session of the Social Chamber of the Supreme Court of April 22, 2014 (cassation for the unification of doctrine 1197/2013).
Likewise, in accordance with the previous interpretative criterion, in the event of dismissal declared unfair, the part of compensation that does not exceed the mandatory minimum amount provided for in section 2 of the aforementioned article 11 of Royal Decree 1382/1985, of August 1, is considered exempt. ( 20 days of cash salary per year of service and up to a maximum of 12 monthly payments).
Professional sportsmen
Regulations: Art. 2.1.d) Workers' Statute
In the case of professional athletes with a special employment relationship (Royal Decree 1006/1985, of June 26), by establishing article 15 of the aforementioned Royal Decree 1006/1985 a minimum limit of guaranteed compensation of two months per year worked , is considered to enjoy the exemption from article 7.e) of the Personal Income Tax Law up to the amount of compensation that corresponds to said limit
Family home service employees
Regulations: Articles 2.1.b) Workers' Statute and 11 of Royal Decree 1620/2011, of November 14, which regulates the special employment relationship of family home service ( BOE of 17)
In the case family home service employees (special employment relationship regulated in Royal Decree 1620/2011, of November 14), the cause of termination or dismissal must be distinguished:
If the contract is terminated due to the employer's withdrawal, the exempt compensation is:
- For contracts entered into as of January 1, 2012, 12 calendar days per year of service, with the limit of 6 monthly payments
- For contracts prior to that date, 7 days per year with the limit of 6 monthly payments .
If it is an unfair dismissal, the exempt compensation will be 20 calendar days per year of service, with the limit of 12 monthly payments .