Contract permanent disability and extinction

On 1 May 2025, Law 2/2025 of 29 April entered into force. It modifies the amended text of the Workers' Statute Law, approved by Royal Legislative Decree 2/2015, of 23 October, on termination of the employment contract due to the worker's permanent incapacity, and the amended text of the General Social Security Law, approved by Royal Legislative Decree 8/2015, of 30 October, on permanent incapacity.

The main new features are:

Modification of Article 48.2 of the Workers' Statute. Suspension with entitlement to return to the job
A paragraph is added to Article 48.2 referring to the new letter n) of Article 49.1, recognising the worker's situation as a case of suspension with entitlement to return to the job, with the following wording: “In the cases provided for in letter n) of article 49.1, suspension of the employment relationship, with entitlement to return to the job, will also be considered to continue during the time in which reasonable adjustments are made or there is a transfer to an available vacant position.”
 
Modification of Article 49.1 e) and addition of letter n) to the Workers' Statute. Suspension with entitlement to return to the job
Death as the sole grounds for termination of the contract
Article 49.1 e) removes the reference to the worker's severe disability or total or absolute permanent incapacity as grounds for termination of the employment contract.

Termination of the contract at the worker's discretion and linked to the company's ability to make reasonable adjustments or move them to a different job:
The new article 49.1 n) makes the possibility of termination of the contract due to “declaration of the worker's severe incapacity, total or absolute permanent incapacity” subject to the worker's discretion: 

• Within 10 calendar days of notification of the decision determining the PI, the worker must state in writing their willingness to maintain the employment relationship.
• The company will have a maximum period of 3 months from notification of the decision to make reasonable adjustments or move them to a different job. When the adjustment is an excessive burden or there is no vacant and available job that matches the worker's professional profile and is compatible with the new situation, or when, even if such a possibility exists, the employee rejects the appropriately proposed change of job. The company will have the same period to terminate the contract. The decision will be justified and must be notified to the worker in writing.
• To determine an excessive burden, the cost of the adaptation measures will be taken into account in relation to the company's size, resources, economic situation, and total turnover. It will not be considered excessive if sufficiently mitigated by public measures, aid, or subsidies. It is stipulated that in the case of companies with fewer than 25 workers, the cost of adaptation, without taking into account aid or subsidies, will be considered excessive when the cost of adaptation exceeds either the compensation due under Article 56.1 or six months' salary of the person requesting the adaptation, whichever is higher.
• The SSPPs will determine, in accordance with the provisions of applicable regulations and after consulting with the workers' representatives on occupational risk prevention, the scope and characteristics of the adjustment measures, including those related to training, information, and health monitoring of the worker, and will identify the jobs compatible with the worker's new situation.

Modification of article 49.1 e) and addition of n) to the Workers' Statute. Suspension with entitlement to return to the job

The following paragraph (three) is added to article 174.5:

1. When, in accordance with the provisions of Article 49.1.n), the termination of TI is due to a decision recognising PI status (TPI, API, SI), the termination is not determined by the company carrying out the reasonable, necessary and appropriate adjustments to the job or by moving the worker to another job:

   • The economic effects of the PI will be suspended while the same job is held with adaptations or another job that is incompatible with receiving the corresponding pension (198 GSSL).

Change of terminology

2. Third-party assistance supplement: All references in the WS and the GSSL to “serious disability” are replaced by “serious incapacity”.
3. Non-contributory incapacity: All references in the WS and the GSSL to “non-contributory disability” are replaced by “non-contributory incapacity”.

Modification of Law 36/2011, of 10 October, regulating the Social Jurisdiction.

art. 120. Proceedings. A paragraph is added to the article referring to proceedings for the termination of employment contracts on objective grounds, indicating fast-track proceedings for the cases provided for in Article 49.1.n) of the Workers' Statute.

In cases of permanent disability in its degrees of Total, Absolute or Major Disability, is significant that know that rights, obligations and stock involves the new regulations for your company and for people in staff.