Information on Cessation of Activity of Self-Employed Workers (CATA)

• Economic, technical, productive or organizational reasons that prevent continuing with the activity:
  • Economic losses: derived from the development of the activity in a full year, greater than 10 percent of the income obtained in the same period, excluding the first year of the start of the activity.
  • Foreclosures and contests: judicial or administrative aimed at the collection of debts recognized by the executive bodies, which represent at least 30 percent of the income of the immediately preceding financial year.
  • The judicial declaration of bankruptcy that prevents continuing with the activity, in the terms of Law 22/2003, of July 9.
• Loss of the administrative license, provided that it constitutes a requirement for the exercise of the economic or professional activity and is not motivated by the commission of criminal offenses.
• Force majeure that determines the temporary or definitive cessation of the activity.
• Gender violence determining the temporary or definitive cessation of the activity.
• Divorce or marital separation agreement in cases in which the  autonomous divorced or separated person performs family support functions in the business of his or her ex-spouse or of the person who has separated.
• Death, disability or  retirement of the spouse who owns the business with whom he/she performed family help functions.

Worker  economically dependent self-employed (TRADE) or self-employed workers who do not have the recognition of being economically dependent, provided that their activity meets the conditions established in article 11 of Law 20/2007, of July 11, which approves the Labor Statute  Autonomous, and in article 2 of Royal Decree 197/2009, of February 23, which develops the Labor Statute  Autonomous regarding contract  worker  economically dependent self-employed.

• Termination of the contractual duration, work or service.
• Serious contractual breach by the client.
• Termination of the client's contractual relationship for justified cause.
• Termination of the client's contractual relationship for unjustified cause.
• Death, disability or  retirement of the client.
  It will not be considered a legal situation of termination,  TRADE who, after ceasing their relationship with the client and receiving the cessation of activity benefit, contract again with the same client within a period of one year, counting from the moment the benefit was extinguished.

• Cessation of the activity carried out in the cooperative due to unfair expulsion.
• Termination for economic, technical, productive, organizational or Force Majeure reasons.
• Cessation of the activity carried out in the cooperative due to the termination of the corporate bond of a fixed duration.
• Due to gender violence among working members.
• Cessation of work provision during the trial period.
• It will not be considered a legal situation of cessation, the worker members - or applicants - of the associated work cooperatives who, after definitively ceasing to provide work, and therefore, in the activity carried out in the cooperative, and having received the protection  TASTING, re-enter the same  cooperative society within a period of one year, counting from the moment the benefit was terminated.

Those who involuntarily cease to hold the position of director or administrator of the company or in the provision of services to it, and the company has incurred losses greater than 10 percent of the income derived from the development of the activity in a full year, excluding the first year of commencement of the activity, or have decreased its net worth to below two-thirds of the share capital figure, and in turn accredit the termination as administrator.

• Economic, technical, productive or organizational reasons.
• Loss of the administrative license, provided that it constitutes a requirement for the exercise of the economic or professional activity and is not motivated by the commission of criminal offenses.
• Force majeure that determines the cessation, temporary or definitive, of the activity.
• Gender violence determining the cessation, temporary or definitive, of the activity.
• Divorce or marital separation agreement in cases in which the  autonomous divorced or separated person performs family support functions in the business of his or her ex-spouse or of the person who has separated.
  Self-employed workers who carried out their professional activity jointly with others and who, after ceasing their activity and receiving protection, will not be considered a legal situation of cessation.  TASTING, return to exercise their professional activity in the same entity within a period of one year, counting from the moment the benefit was terminated.
  
  When the right to protection  TASTING is extinguished due to the performance of work on one's own account or for someone else's  self-employed worker You may choose, in the event that a new right to protection is recognized, between reopening the initial right for the remaining period and the bases and rates that corresponded to it, or having the right to protection generated by the new contributions made.
  At the time of application the  autonomous You may expressly and in writing choose the right you wish to have recognized. If he  autonomous does not expressly opt in the request for any of the rights, the request will be understood to refer to the last right generated.
  The option formulated expressly or by expiration of the term will be irrevocable and the protection contributions  TASTING which has not been chosen cannot be counted later for the recognition of a new right.
  Suspension
  The right to protection  TASTING It will be suspended in the following cases:

• During the corresponding period for imposition of sanction for minor or serious infraction as determined.
• While serving a sentence that involves deprivation of liberty.
• During the period of carrying out self-employed or employed work whose duration is less than 12 months.
• During residence transfers abroad, for periods of less than 12 months, aimed at searching for or carrying out jobs, professional development or international cooperation. In the same way, it will also suspend the right to protection  TASTING Occasional departure abroad (maximum once a year) for a period of less than 30 calendar days and as long as it is previously communicated and authorized by the Mutual Fund.
  Failure to comply with the indicated requirements will result in the termination of the right.
  The suspension of the right will entail the interruption of the payment of the benefit and the  price  TASTING for full monthly payments, without affecting the period of their collection, except in the event of a sanction, in which the period of collection will be reduced by the time established by the sanction.

When the right to protection  TASTING is extinguished due to the performance of work on one's own account or for someone else's  self-employed worker You may choose, in the event that a new right to protection is recognized, between reopening the initial right for the remaining period and the bases and rates that correspond to it, or having the right to protection generated by the new contributions made.

At the time of application the  autonomous You may expressly and in writing choose the right you wish to have recognized. If he  autonomous does not expressly opt in the request for any of the rights, the request will be understood to refer to the last right generated.

The option formulated expressly or by expiration of the term will be irrevocable and the protection contributions  TASTING which has not been chosen cannot be counted later for the recognition of a new right.

The right to protection  TASTING It will be suspended in the following cases:

• During the corresponding period for imposition of sanction for minor or serious infraction as determined.
• While serving a sentence that involves deprivation of liberty.
• During the period of carrying out self-employed or employed work whose duration is less than 12 months.
• During residence transfers abroad, for periods of less than 12 months, aimed at searching for or carrying out jobs, professional development or international cooperation. In the same way, it will also suspend the right to protection  TASTING Occasional departure abroad (maximum once a year) for a period of less than 30 calendar days and as long as it is previously communicated and authorized by the Mutual Fund.
  Failure to comply with the indicated requirements will result in the termination of the right.
  The suspension of the right will entail the interruption of the payment of the benefit and the  price  TASTING for full monthly payments, without affecting the period of their collection, except in the event of a sanction, in which the period of collection will be reduced by the time established by the sanction.

The right to benefit and  price  TASTING will be extinguished:

• Due to exhaustion of the duration of the benefit.
• By imposition of sanctions in the terms established in the LISOS.
• By carrying out work on a self-employed or employed basis for a period equal to or greater than 12 months, provided that this generates a new right to protection  TASTING as  autonomous.
• By reaching the age of  retirement ordinary, except when the requirements to access the pension are not met.  retirement contributory.
• For recognition of pension  retirement or of  permanent disability, without prejudice to the provisions of section two of article 12.
• By transfer of residence abroad, except in cases where the suspension or export of benefits is applicable in accordance with the rules of the European Union.
• By voluntary renunciation of the right.
• Due to the death of  autonomous.

The perception of the benefit  TASTING It is incompatible with employment and self-employment, although its realization does not imply mandatory inclusion in any Special Regime.

It will also be incompatible with obtaining pensions or economic benefits of the  Social Security system, unless these had been compatible with the work that gave rise to the protection  TASTING, as well as with the measures to promote the cessation of activity regulated by sectoral regulations for different groups, or those that could be regulated in the future on a state basis.

As regards the self-employed included in the Special Regime for Sea Workers, the benefit for cessation of activity will be incompatible with the receipt of aid for the paralysis of the fleet.

In addition to the previously mentioned incompatibilities, the provision is considered incompatible.  TASTING:

• With the benefits for  unemployment contributory level, subsidies, agricultural income and active insertion income.
• With paid research or cooperation activities.
• With the exercise by election or designation for public or union positions or paid Senior Administration Positions.
• With any other situation that implies the right to receive economic benefits of a public nature, as substitutes for the income not received due to the cessation of the activity.

Protection due to cessation of activity will be compatible:

• With pensions or economic benefits of the  Social security that would have been compatible with the job  autonomous that gave rise to the protection  TASTING, and with the benefits of  Social security per dependent child.
• With scholarships or aid for taking courses  vocational training.
• With the compensation received by the  self-employed worker dependent on your client.
• With the performance of self-employed agricultural work without commercial purposes carried out on areas dedicated to family gardens for self-consumption, as well as those aimed at maintaining good agricultural and environmental conditions provided for in the European Union regulations for agricultural lands [pending regulatory development].

The jurisdictional bodies of the social order will be competent to hear the decisions of the managing body, relating to the recognition, suspension, or extinction of benefits due to cessation of activity, as well as their payment.

In the event of a claim being formulated prior to the resolution of the managing entity, a joint commission formed and represented by the mutual collaborators of the  Social security, the associations representing self-employed workers and the administration of the  Social security, will issue a report binding on the resolution referred to(pending its formation and application by the Competent Administration).

It will be a necessary requirement to formulate a claim that the interested parties file a prior claim with the managing body.

This benefit is managed by the  Mutual Collaborator with Social Security with which  self-employed worker has arranged coverage for professional contingencies.

If he  self-employed worker had arranged coverage of professional contingencies with the  INSS or the  ISM the protection management body  TASTING It would be the State Public Employment Service.

When should you choose to cover this contingency?

The benefit coverage of self-employed workers is mandatory for self-employed workers with the entry into force on January 1, 2019, of Royal Decree-Law 28/2018, of December 20, for the revaluation of pensions and other urgent measures in social, labor and employment matters.

Continence coverage due to cessation of activity will not be mandatory in the case of partners included in the Special Regime of the  Social security of self-employed workers who have an intercooperative system of social benefits, complementary to the Public System.

How much does it cost to cover this contingency?

It will be the  quote type corresponding to the protection due to cessation of activity will be set annually in the General State Budget Law.