It is well known that the manufacturing industry has an obligation to maintain its competitiveness in Europe if it wants to guarantee its economic growth in an increasingly globalized market. Today, If a business is not committed to innovation and digital transformation, it runs the risk of being left behind. and even lose their place in the market. Faced with this situation, how can manufacturing companies ensure their long-term survival and competitiveness in this scenario?
A strategic solution is – without wishing to influence your choice – partial retirement with replacement contract, a mechanism which makes it possible to maintain the knowledge and experience accumulated over the years by workers close to retirement, at the same time which facilitates the workforce rejuvenation by integrating young talents with the physical capacity necessary to meet the demands of a sector such as manufacturing.
The legal framework: a current opportunity
The partial retirement mechanism with relief contract, extended until December 31, 2024 by Royal Decree-Law 20/2022, modified article 6 of the fourth transitional provision of the consolidated text of the General Social Security Law ( LGSS) approved by the Royal Legislative Assembly. Decree 8/2015 of October 30 extending the effects provided for therein, so that the regulation of the partial retirement modality with simultaneous execution of a replacement contract, in force before the entry into force of Law 27/ 2011 of August 1, will continue to apply to pensions accumulated before January 1, 2024.
Partial retirement, regulated in itself by article 215 of the LGSS, allows workers who meet the conditions required to have right to Social Security contributory retirement pensionreduce their working hours while receiving a proportional share of their retirement pension.
For its part, the relief contract, included in article 12, paragraphs 6 and 7 of the Workers’ Statute, allows the company to hire a worker – a replacement – to fill the part-time position left vacant by the partially retired worker, allowing the transfer of accumulated knowledge to new incorporations. SO, The duration of the succession contract must be indefinite or, at least, equal to the time during which the replaced worker is missing before reaching ordinary retirement age.
In this way, the partially retired worker becomes a “mentor” for the replacement, ensuring that the transfer of responsibilities occurs gradually, thereby minimizing the risk of loss of company knowledge.
In turn, when the partial retiree reaches ordinary retirement age, the position will likely transition to full relief.
Conditions for accessing a relief contract
To be relieved, the worker must:
- Be unemployed, or
- have a fixed-term contract with the company.
Conditions for access to partial retirement
The requirements to implement this modality in the manufacturing industry (CNAE Group C) are as follows:
- Qualities of the worker: the partial retirement modality is intended for workers who carry out physically demanding activities or who require high technical specialization.
- Seniority and contributions: a minimum stay of 6 years in the company and 33 years of contributions is required (25 years for people with a disability of 33% or more).
- Reduction in working time: the worker’s working time can be reduced between 25% and 67%, or up to 80% if the hired humanitarian worker works under a permanent contract and full time. These percentages will be understood as referring to the working day of a comparable full-time worker.
- Contribution base of the reliever: to maintain financial stability, the contribution base of the reliever must be at least equal to 6.5% of the average base of the last six months of the partially retired worker.
- Age of the worker: the worker must be at least 61 years old to access partial retirement (or 60 years old if he was a mutual member before January 1, 1967).
- Conditions of activity: at least 70% of the workforce must have a permanent contract.
Conclusion of the analysis
Clearly, with the implementation of the partial retirement modality with the simultaneous conclusion of a replacement contract, the company manages to “renew part of its workforce” without having to resort to layoffs or carry out a number of them. significantly lower.
De facto, Job stability becomes a prioritysince many relievers end up filling the position of the partially retired asset. Thus, the successor, by being progressively trained and supervised by the worker whose working hours are reduced due to partial retirement, acquires the necessary skills to fill the void left by the latter, guaranteeing that the intellectual capital of the business is not lost anymore. facilitate a smooth transition to full retirement.
In general terms, Wages of workers with greater seniority tend to be higherwhile replacements, being younger or having fewer years of experience in the company, receive lower remuneration. This salary difference contributes to the company achieving a reduction in costs to the extent that succession covers the reduced hours of the partially retired worker, without this having a negative impact on the productivity of the company.
