Spain: Same-Day Termination Notifications Required

The global solution for payroll professionals, combines custom research, strategic white papers, country primers, webinars, and the expert guidance you’ve come...

By Brett Allan King

Feb. 5— Employers in Spain will soon have to notify the social security system of employee terminations and certain other events on the same day they occur, according to a proposed royal decree announced by the Ministry of Employment and Social Security Feb. 2.

The proposed decree would modify Law 34/2014, implemented Dec. 28, 2014, requiring that the Spanish General Social Security Treasury (GSST) bill employers directly for monthly social tax contributions on behalf of employees rather than require that they calculate the taxes themselves as is current practice. Among other things, the decree would require same-day employer notification of the GSST of employee terminations or other changes in status.

“This will not only facilitate direct termination of social security fund payments,” the ministry said in a statement, “but also will prevent the current practice of communicating terminations . . . with an effective date from six days before.”

Required under Law 34/2014 to be approved by March 28, the decree will now be available for comment by employers and labor unions.

To contact the reporter on this story: Brett Allan King in Madrid at correspondents@bna.com

To contact the editor on this story: Jared Mondschein at jmondschein@bna.com

The employment ministry announcement is available at http://prensa.empleo.gob.es/WebPrensa/noticias/seguridadsocial/detalle/2412, text of Law 34/2014 at https://www.boe.es/diario_boe/txt.php?id=BOE-A-2014-13517, both in Spanish.

For more information on Spanish HR law and regulation, see the Spain primer.