The financial contribution to the Public Treasury in collective redundancies affecting employees aged 50 or over. Problems encountered in practice

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Published 12-06-2024
Ana Castro Franco

Abstract

In response to a specific case, such as the collective redundancy announced in 2010 by the Telefónica company, which affected a greater proportion of workers aged fifty and over, Law 27/2011 of 1 August on the updating, adaptation and modernisation of the Social Security system, incorporated a provision to react to the high costs for the State of a restructuring of this scale. In order to avoid the socialisation of redundancy costs, the 16th DA established the obligation, for the company receiving profits and making the readjustment including senior workers, to make a contribution to the Public Treasury for the amount of unemployment benefits and subsidies for this group, including the contributions made by the State Public Employment Service. Since then, major reforms have broadened its scope from being applicable to companies with more than 500 employees to those employing more than 100. It serves a dual purpose: on the one hand, to discourage the dismissal of older people, who are often discriminated against on the grounds of age, and on the other, to cushion the impact of paying benefits to people who are unfortunately affected by a high rate of long-term unemployment. The complex regulation of this figure makes it difficult to apply in practice, both on the part of the companies when making the contribution and on the part of the management entity in charge of claiming it.

How to Cite

Castro Franco, A. (2024). The financial contribution to the Public Treasury in collective redundancies affecting employees aged 50 or over. Problems encountered in practice. Lan Harremanak, (51). https://doi.org/10.1387/lan-harremanak.26325
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