H) Exempt compensation derived from the termination of special labor relationships
a. Senior management staff
Regulations: Articles 2.1.a) Workers' Statute and 11 Royal Decree 1382/1985, of August 1, which regulates the special employment relationship of senior management personnel ( BOE of August 12)
In the case of senior management personnel, the employment contract may be terminated for the reasons and through the procedures provided for in the Workers' Statute, except for the following specialties established in article 11 of Royal Decree 1382/1985, of August 1:
Termination of the contract due to withdrawal of the employer.
In these cases, 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 for these cases ( 7 days with a maximum of 6 monthly payments ) is considered a mandatory minimum and, therefore, exempt from personal income tax, in accordance with the interpretative criteria. established in the Supreme Court Ruling number 1528/2019, of November 5, of the Second Section of the Contentious-Administrative Chamber (ROJ: STS 3678/2019).
Specify that the ruling of Sentence number 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 (Appeal for cassation for the unification of doctrine no. 1197/ 2013) which considered that the compensation of seven days of salary in cash per year of service with the limit of six monthly payments established in article 11.1 Royal Decree 1382/1985, is a "minimum of necessary right, not available" and, therefore , mandatory, even in cases where the termination of the contract without compensation has been agreed.
In the event of dismissal declared unfair , and in accordance with the previous interpretative criterion, the part of compensation that does not exceed the mandatory minimum amount provided for in section 2 of the aforementioned article 11 is considered exempt. of Royal Decree 1382/1985, of August 1 ( 20 days of cash salary per year of service and up to a maximum of 12 monthly payments) .
b. Professional sportsmen
Regulations: Articles 2.1.d) Workers' Statute and 15 Royal Decree 1006/1985, of June 26, which regulates the special employment relationship of professional athletes ( BOE of June 27)
In case of unfair dismissal, professional athletes with a special employment relationship (Royal Decree 1006/1985, of June 26), have the right to a guaranteed minimum compensation of at least two monthly payments of their periodic remuneration, plus the corresponding proportional part of the quality and quantity of work complements received during the last year, with time periods less than one year being prorated by month.
The compensation received by them is considered to be exempt from article 7.e) of the Personal Income Tax Law up to the amount that corresponds to said limit ( two months per year worked ).
c. Family home service employees
Regulations: Articles 2.1.b) Workers' Statute and 11 Royal Decree 1620/2011, of November 14, which regulates the special employment relationship of family home service ( BOE of November 17)
In the case of family home service employees (a 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 .