Among other things, Law 668/2023 establishes implementing rules on sectoral tax-qualified simplified employment pension plans (planes de pensiones de empleo simplificados – PPESs); entitles temporary workers to participate in tax-qualified pension plans; and allows partial retirees to continue to contribute to their plans until full retirement. The regulatory framework for PPESs was established in July 2022 (see this Global News Brief - Spain: New tax incentives, sectoral pension and funding options). Separate legislation, Royal Decree 608/2023, creates a new six-month notice requirement for closures of workplaces involving the dismissal of 50 or more workers.
The following provisions apply to all tax-qualified plans, effective July 21, 2023, unless noted otherwise:
Royal Decree 608/2023, effective July 13, 2023, creates a new requirement for companies to provide at least six months’ advance notice to the central government, local labor authorities and representative labor unions of any intent to close a workplace or company involving the dismissal of 50 or more workers, followed by consultations with affected employees after the notice period has elapsed.
Around half of employers surveyed by WTW provide supplemental retirement benefits for their employees in Spain. Companies offering such benefits should review the new rules on pension plans and PPESs. The six-month notice requirement for collective dismissals for the closure of a workplace or company may be intended to encourage employers to consider less drastic measures for their business.