Spanish hotel companies are obliged to make a specific number of monthly salary payments to those employees who leave the company due to retirement, permanent disability or upon reaching a certain age and having a certain number of years of service and fulfilling certain pre-established requirements.
In this regard and in compliance with Royal Decree-Law 16/2005, the Group has outsourced its pension obligations for its employees’ pension plans.
Also, in accordance with Italian law, employees of Italian companies have the right to compensation if they resign or are dismissed.
Its obligations to personnel also include those arising from contracting pension funds for certain employees, which in the Group, mainly affects the business units of Italy and the Netherlands.
Therefore, to provide for these obligations to future payments to personnel, the Group has recognised a liability under “Provisions for Risks and Charges” (See Note 18).