Fedya proposes to collect unemployment benefits after the end of the contract by mutual agreement.

The Foundation for Applied Economic Research (Fedea) has proposed change the procedure for termination of the contract by mutual consent work to eliminate the differences that exist when you are dismissed, and that in these cases you can also access regular unemployment benefits.

In a work published this Monday by Fedya and signed Inigo Sagardoand Sagardoy Abogados and the Francisco de Vitoria University explain that in the Spanish legal system there are two fundamental differences between the agreed termination of these contracts and dismissal, “which tend to prevent the use of the first termination mechanism.”

On the one hand, the agreed termination does not provide access to regular unemployment benefits, and on the other hand, economic compensation has very unfavorable tax regime towardsseverance pay.

The figures of dismissals and court decisions in Spain, the article adds, point to the use of a method of dismissal to terminate contracts that, in principle, should be carried out by mutual agreement and which, for reasons of a tax nature or unemployment benefits, is not allowed. formulated through this legal instrument of dismissal, which does not comply with the true reason for the termination.

With this in mind, the author argues that it would be convenient to eliminate the distinctions, which would help to formalise as voluntary termination a significant proportion of contract terminations that are currently formalised as dismissals, “reducing transaction costs for the parties and significantly easing the burden of work of the social courts and the conciliation system”.