Faced with more and more collective redundancy procedures (EREs), the UGT union wants an emergency reform of the tax status for layoff pay to ensure fair treatment for those who loose their job. Now, taxation for this kind of benefit is based on the place of residence, the modalities for the termination of the labor contract and possible legal claims. The union announced it would present its proposals during the next working meetings between the social partners. (Ref. 090033)
Geographic equality. In Navarra or in the Basque Country, the law was “improved” compared to what is in force in the rest of the country. In both regions, the tax system for benefits coming from an ERE (collective redundancy plan) relies on economic, technical, organizational or productive causes and cannot be taxed up to a limit corresponding to an unjustified dismissal. The UGT wants this type of tax exemption for layoff pay to be extended to the entire country. Indeed, in the rest of the cou
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