The Partial Retirement with simultaneous celebration of relief contract, is extended until 1/01/2023. This measure stands out among those included in R.D.Law 20/2018, of 7 December. Urgent measure to boost economic competitiveness in the industry and commerce sector in Spain. The application of the regulations relating to Partial Retirement with simultaneous celebration of a relay contract ends on 31/12/2018. The so-called 4th Transitory Provision of the revised text of the General Law on Social Security, approved by Royal Legislative Decree 8/2015, of 30 October.
Partial retirement with simultaneous conclusion of a relief contract
What is a Relief Contract?
The one between a company and an unemployed worker to replace another who has applied for partial retirement. However, between a company and a worker who is unemployed or has a fixed-term contract.
Requirements
The requirements for access to the relief contract are those listed below:
- Firstly, that the worker applying for partial retirement performs functions that require physical effort. Or a high degree of attention.
- In addition, the partial retiree must prove a period of seniority in the company of at least six years. Immediately prior to the date of partial retirement.
- At the time of the event causing the partial retirement, workers with a permanent contract must exceed 70% of the total workforce.
- The reduction in the working day of the part-time retiree must be between a minimum of 25% and a maximum of 67%. Or 80% for cases in which the relief worker is hired full-time under a contract of indefinite duration.
- There must be a correspondence between the contribution bases of the relief worker and the retired worker.
- Finally, the partial retiree must prove 33 years of contribution on the date of the event causing the partial retirement.
The norm states that it is “necessary and urgent to extend its period of application in order to achieve the objectives of this modality of partial retirement”. That is, to try to rejuvenate the staff. And encourage indefinite hiring and increase the productivity of companies.
Do you have doubts about the application of this regulation for the application of Partial Retirement with simultaneous celebration of a relief contract? Do not hesitate to contact us.
Arrabe Integra
Labour Consulting and HR Management Dept.