We have recently learned from several professionals in the labor area about the TGSS Campaign reviewing indefinite Flat Rate contracts.
The measure implemented in 2014 (through Royal Decree 3/2014, of February 28, on urgent measures to promote employment and permanent contracts) aimed to promote permanent contracts, allowing companies that signed new contracts between February 25, 2014 and March 31, 2015, to apply a reduction in common social security contingencies for 24 months.
The amount quoted for common contingencies, therefore, was 100 euros, and 50 euros in the case of a part-time contract.
But in return, this type of contract required the company to comply with a requirement: maintaining the level of full, permanent employment achieved with the contracted worker for 36 months.
Since it has been 3 years since the start of many subsidized contracts, the General Treasury of Social Security has started an inspection campaign to verify compliance with staff maintenance.
Review of compliance with the obligations of the permanent flat-rate contract: this is how the inspection works.
To verify that the employment level achieved has been maintained, they will examine the number of employees in the company during the 36-month period.
For the purposes of examining compliance with the maintenance of the workforce, terminations of contracts for objective reasons or non-unfair disciplinary dismissals will not be taken into account (as indicated by Royal Decree 3/2014). Likewise, TGSS is verifying whether there is any type of fraud of law or improper application of the reductions.
What consequences can there be if this requirement is not met?
In the event of non-compliance with this requirement, the inspection takes immediate action. The regulation governing the indefinite flat-rate contract expressly states that in the event of improper application of the reduction, all reduced amounts must be reimbursed, together with the corresponding surcharge and late payment interest.
If the company does not meet the requirement of maintaining the level of employment, the reduction will be void, and the difference between the amounts applied and the ordinary amounts that would have been applicable must be reimbursed.
For this purpose, the period in which the breach occurred will be taken into account:
At 12 months from discharge: You must repay 100% of the difference.
After 24 months: 50% of the difference must be reimbursed.
At 36 months: 33% of the aforementioned difference.
When the reason for the refund is due to this reason, the surcharge and late payment interest will not apply.
If you have any questions about whether your company meets the required requirements and would like to avoid unnecessary paperwork with the TGSS, you can come to our office and our labor experts will advise you. contact and we will call you.
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