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 start of the activity.
  • Executions and contests: judicial or administrative aimed at the collection of debts recognized by the executive bodies, involving at least 30 percent of the income of the immediately preceding fiscal 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 cessation, temporary or definitive, of the activity.
• Divorce or marital separation agreement in the cases in which the href="https://www.fraternidad.com/es-ES/autonomo-0"> self-employed  divorced or separated person would exercise family help functions in the business of his or her ex-spouse or the person who has separated.
• Death, disability or retirement  of the spouse who owned the business with whom he performed family help functions.

Worker   economically dependent self-employed  ( TRADE ) or self-employed workers who lack the recognition of economically dependent, provided that their activity meets the conditions established in article 11 of Law 20/2007, of July 11, by which approves the Labor Statute Autonomous , and in article 2 of Royal Decree 197/2009, of February 23, by which the Labor Statute is developed Self-employed  in matters of contract of the 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, the  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 against working members.
• Cessation of work during the trial period.
• It will not be considered a legal situation of cessation, the working partners – or applicants – of the associated labor cooperatives who, after definitively ceasing to provide work, and therefore, in the activity carried out in the cooperative, and having received the protection CATA , 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 their net worth to below two-thirds of the share capital figure, and in turn prove 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 the cases in which the href="https://www.fraternidad.com/es-ES/autonomo-0"> self-employed  divorced or separated person would exercise family help functions in the business of his or her ex-spouse or the person who has separated.
  Self-employed workers who carried out their professional activity jointly with others and that, after ceasing their activity and receiving the protection CATA , they 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 CATA  is extinguished due to the performance of self-employed or self-employed work by the  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  may expressly opt in writing for the right that they intend to have recognized. If the self-employed  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 quotes will be CATA  which has not been opted for may not be counted later for the recognition of a new right.
  Suspension
  The right to protection CATA  will be suspended in the following cases:

• During the corresponding period for imposition of sanction for minor or serious infraction as determined.
• During the serving of 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 improvement or international cooperation. In the same way, the right to protection will also be suspended CATA  occasional departure abroad (maximum once a year) for a period of less than 30 calendar days and provided that 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 quote   CATA  for complete monthly payments, without affecting the period of their receipt, except in the case of sanction, in which the period of perception will be reduced by the time established by the sanction.

When the right to protection CATA  is extinguished due to the performance of work on a self-employed or employed basis on self-employed worker  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 him, or having the right to protection generated by the new contributions made.

At the time of the request the self-employed may expressly opt in writing for the right that they intend to have recognized. If the self-employed  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 contributions for the protection CATA  for which it has not been opted may not be computed subsequently for the recognition of new right.

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

• During the corresponding period for imposition of sanction for minor or serious infraction as determined.
• During the serving of 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 improvement or international cooperation. In the same way, the right to protection will also be suspended CATA  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 quote   CATA  for complete monthly payments, without affecting the period of their receipt, except in the case of sanction, in which the period of perception will be reduced by the time established by the sanction.

The right to the benefit and quote   CATA  will be terminated:

• Due to exhaustion of the duration of the benefit.
• By imposition of sanctions in the terms established in the LISOS.
• For carrying out work as self-employed person or employee for a period equal to or greater than 12 months, provided that this generates a new right to protection CATA  as autonomous .
• By reaching the age of  retirement  ordinary, except when the requirements to access the retirement  contributory pension are not met.
• By recognition of pension of  retirement  or 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 waiver of the right.
• Due to the death of autonomous .

The receipt of the benefit CATA  is incompatible with employed work and self-employed work, although its realization does not imply mandatory inclusion in any Special Regime.

It will also be incompatible with obtaining pensions or economic benefits from the Social Security system , unless these had been compatible with the work that gave rise to the protection CATA , 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 paralysis of the fleet.

In addition to the previously mentioned incompatibilities, the service CATA is considered incompatible:

• With benefits for  unemployment  at the 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 public economic benefits, as substitutes for the income not received due to the cessation of the activity.

Protection for cessation of activity will be compatible:

• With the pensions or economic benefits of the Social Security  that would have been compatible with the work self-employed  that gave rise to the protection CATA , and with the benefits of  Social Security  per dependent child.
• With scholarships or aid for taking courses of  vocational training .
• With the compensation received by the self-employed worker  dependent on his client.
• With the performance of self-employed agricultural work without commercial purpose carried out on areas dedicated to family gardens for self-consumption, as well as those directed to the maintenance in good agricultural and environmental conditions provided for in the European Union regulations for agricultural land [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 representative associations of self-employed workers and the administration of the Social Security , will issue a binding report 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 Mutua Collaboradora con la Seguridad Social  with which self-employed worker  have coverage for professional contingencies arranged.

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

When should you choose to cover this contingency?

Benefit coverage for 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 the 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 contribution type  corresponding to the protection for cessation of activity will be set annually in the General Budget Law of the State.