Table: collective dismissals: exempt compensation, reduction for irregularity of 30 percent of the non-exempt amount and early redemption

Note: The table refers to the termination of the employment relationship due to collective dismissal carried out in accordance with the provisions of article 51 of the Workers' Statute (known as the Termination Employment Regulation File -ERE-), whose consultation period was started after August 1, 2008.

Exempt compensation -Art. 7.e) Law Personal Income Tax -	Reduction due to irregularity of 30% of the non-exempt amount -Art. 18.2 Law Personal Income Tax -	Early rescue in the form of capital of unemployment pension plans and application of the 40% reduction of the DT 12 Law Personal Income Tax
The lesser of: a) 180.00 euros b) The corresponding amount depending on the contract of the worker affected by the collective dismissal: For contracts after 02-12-2012: 33 days per year of service, with a maximum of 24 monthly payments. For contracts prior to 02-12-2012 (DT 22 Law IRPF : 45 days per year of service from the start date of the contract until the February 12, 2012 and 33 days per year of service for the period between February 12, 2012 and the date of dismissal. The amount may not be greater than 720 days of salary , unless the calculation of the compensation for the period prior to February 12, 2012 is a greater number of days, in which case this will be applied as the maximum compensation amount, without said amount being greater than 42 monthly payments.	For this purpose, the number of years of service of the worker will be considered as the generation period. These returns can be collected : in one go or fractionally (when the number of generation years ÷ between the number of fractionation periods is > 2) All years in which the compensation is received must be taken into account, including those corresponding to the compensation being exempt. The reduction can be applied, even if this reduction had been applied in the last 5 previous years. Reduction limit : The limit to which the reduction can be applied depends on the amount of non-exempt compensation obtained: Up to 700,000 euros: 300,000 euros. Between 700,000.01 and 1,000,000 euros : 300,000 - (Total non-exempt compensation - 700,000). More than 1,000,000 euros: 0 euros.	Reduction : 40 percent If the benefit is received in capital form for the entire amount of the plan, you may apply it to the part of the benefit that corresponds to contributions made until 12-31-2006. If the benefit is received in a mixed form , combining income of any type with a payment in the form of capital, the aforementioned reduction may be applied to the part of the benefit that is collected in the form of capital , in the terms set out for the benefit in the form of capital. Time limits: may be applied to all amounts received in the form of capital (single payment ) in the year in which the corresponding contingency occurs and in the following two years. TEAC resolution on unification of criteria (nº 00/08719/2021/00/00). If you have several plans, each one may, therefore, be redeemed in the form of capital in a different year within the aforementioned period. Contingencies to be taken into account for early bailout in case of unemployment : 1. Supposition of collective dismissal as a contingency comparable to retirement. If the specifications of the pension plan provide for the advance payment of the retirement benefit in cases of collective dismissal ^(), when collective dismissal occurs and the worker becomes legally unemployed,* at that moment (becomes unemployed) is considered to have occurred the retirement contingency whatever your age, for the purposes of early redemption and the calculation of the deadlines to apply the reduction. 2. Case of long-term unemployment (contingency not directly linked to the existence of a collective dismissal) When, not assuming scenario 1 above , this contingency is expressly contemplated in the collective pension plan, early redemption is allowed and the calculation of the deadlines to apply the reduction begins. Therefore, if the previous assumption (1) occurs, early redemption is not applicable in this case. The following requirements are required: be legally unemployed, have exhausted unemployment benefits at their contributory level or not be entitled to them and be registered as a job seeker.

Exempt compensation -Art. 7.e) Law Personal Income Tax -

Reduction due to irregularity of 30% of the non-exempt amount -Art. 18.2 Law Personal Income Tax -

Early rescue in the form of capital of unemployment pension plans and application of the 40% reduction of the DT 12 Law Personal Income Tax

The lesser of:

a) 180.00 euros

b) The corresponding amount depending on the contract of the worker affected by the collective dismissal:

For contracts after 02-12-2012: 33 days per year of service, with a maximum of 24 monthly payments.
For contracts prior to 02-12-2012 (DT 22 Law IRPF : 45 days per year of service from the start date of the contract until the February 12, 2012 and 33 days per year of service for the period between February 12, 2012 and the date of dismissal.

The amount may not be greater than 720 days of salary , unless the calculation of the compensation for the period prior to February 12, 2012 is a greater number of days, in which case this will be applied as the maximum compensation amount, without said amount being greater than 42 monthly payments.

For this purpose, the number of years of service of the worker will be considered as the generation period.

These returns can be collected :

in one go or
fractionally (when the number of generation years ÷ between the number of fractionation periods is > 2)

All years in which the compensation is received must be taken into account, including those corresponding to the compensation being exempt.

The reduction can be applied, even if this reduction had been applied in the last 5 previous years.

Reduction limit :

The limit to which the reduction can be applied depends on the amount of non-exempt compensation obtained:

Up to 700,000 euros: 300,000 euros.
Between 700,000.01 and 1,000,000 euros : 300,000 - (Total non-exempt compensation - 700,000).
More than 1,000,000 euros: 0 euros.

Reduction : 40 percent

If the benefit is received in capital form for the entire amount of the plan, you may apply it to the part of the benefit that corresponds to contributions made until 12-31-2006.
If the benefit is received in a mixed form , combining income of any type with a payment in the form of capital, the aforementioned reduction may be applied to the part of the benefit that is collected in the form of capital , in the terms set out for the benefit in the form of capital.

Time limits: may be applied to all amounts received in the form of capital (single payment ) in the year in which the corresponding contingency occurs and in the following two years. TEAC resolution on unification of criteria (nº 00/08719/2021/00/00).

If you have several plans, each one may, therefore, be redeemed in the form of capital in a different year within the aforementioned period.

Contingencies to be taken into account for early bailout in case of unemployment :

1. Supposition of collective dismissal as a contingency comparable to retirement.

If the specifications of the pension plan provide for the advance payment of the retirement benefit in cases of collective dismissal ^(*), when collective dismissal occurs and the worker becomes legally unemployed, at that moment (becomes unemployed) is considered to have occurred the retirement contingency whatever your age, for the purposes of early redemption and the calculation of the deadlines to apply the reduction.

2. Case of long-term unemployment (contingency not directly linked to the existence of a collective dismissal)

When, not assuming scenario 1 above , this contingency is expressly contemplated in the collective pension plan, early redemption is allowed and the calculation of the deadlines to apply the reduction begins. Therefore, if the previous assumption (1) occurs, early redemption is not applicable in this case.

The following requirements are required: be legally unemployed, have exhausted unemployment benefits at their contributory level or not be entitled to them and be registered as a job seeker.

^(*)Please note that the specifications of the pension plan may provide for the advance payment of the retirement benefit also when the worker becomes legally unemployed in the cases contemplated in articles 49.1.g) [for death, retirement or disability of the employer], 52 [due to objective causes] and 57 [bankruptcy procedure] of the Workers' Statute (ET) .^(Back)