Spain: Collective Bargaining Agreements Can Feature Mandatory Retirement Clauses

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Mandatory retirement provisions can now be included in Spanish collective bargaining agreements (CBAs), subject to fulfilling certain criteria. The change is included in Decree-Law 18/2018 (Spanish), which was agreed to in December 2018 and allows CBAs to link mandatory retirement provisions with the achievement of other employment policy objectives. 

Employees can only be forced to retire if they have reached the legal retirement age and made sufficient contributions to receive 100% of the ordinary retirement pension. Previously, CBAs weren’t allowed to include mandatory retirement provisions. 

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Fiona Webster
by Fiona Webster

Principal, Mercer’s Law & Policy Group

Stephanie Rosseau
by Stephanie Rosseau

Principal, Mercer’s Law & Policy Group

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