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Spain's government is considering requiring profitable companies who decide to reduce their overheads by offering early retirement to workers, to also contribute towards their unemployment benefits, according to Labor Ministry sources.
Ministry officials are drafting a bill to be presented to parliament that proposes that companies with high earnings should pay towards benefits for their workers over 52 and have been given early retirement.
Although this idea is by no means a new one, the proposal will be made as an amendment to the current Social Security Law.
The proposal follows Telefónica's announcement last week that it will reduce 20% of its workforce after earning a record-breaking 10 billion euros last year.
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