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Practical Income Manual 2021.

B) Cases that are not considered covered by the exemption

They are not considered covered by the exemption, and are therefore fully subject to the tax and must be declared in full:

a. Compensation established by virtue of an agreement, pact or contract.

b. In general, the amounts that, where applicable, are received as a consequence of the termination of the employment contract, for any reason other than the dismissal or dismissal of the worker or for which it is not established on a mandatory basis in the Workers' Statute or in its implementing regulations the right of the worker to receive compensation.

Among these assumptions, it is worth mentioning the following:

  • The termination, at its end, of temporary or fixed-term employment contracts provided for in article 49.1 c) of the Workers' Statute because they do not result in dismissal or termination at the will of the worker (cessation).

  • Disciplinary dismissals that are classified as appropriate.

  • The termination of the contract at the will of the worker (cessation) that is not motivated by any of the causes referred to in articles 41.3 and 50 of the Workers' Statute.