In recent years, authorities have intensified monitoring of situations related to social security fraud. The Superior Court of Justice of Asturias confirmed the decision that withdrew the retirement of a 67-year-old domestic worker, after concluding that the last employment contract had been forged to allow access to retirement. The employer, an 86-year-old woman, also ended up being sanctioned for her involvement in the scheme.
The case, reported by the Spanish newspaper, demonstrates how a fictitious contract can have serious consequences. The worker, identified as Manuela, had been “hired” by Mariana, an 86-year-old pensioner, to work as a full-time domestic worker, receiving a monthly salary of R$1,050.
Two years later, Manuela applied for a retirement pension, which was initially approved by Spanish Social Security after verifying that it met the conditions set out in article 205 of the General Social Security Law. However, the situation changed when the Labor Inspectorate discovered that the employment relationship never existed in practice.
Simulated contract to complete the years of discounts
The investigation concluded that there were no bank transfers proving salary payment, nor money movements compatible with the alleged remuneration. The employer, who received the respective pensions by bank transfer, had never had any maids before or after Manuela, which increased suspicions, according to the same source.
The court found it proven that the contract was created only to allow the worker to complete the two years of missing deductions, necessary to reach the minimum of 15 years of contributions required to access contributory retirement. The ruling describes the case as a “fictitious discharge situation used to fraudulently request and obtain an ordinary retirement pension.”
Suspended pension and heavy fine
In view of the discovery, the INSS canceled the retirement and demanded the return of the amounts received unduly. Furthermore, the employer was ordered to pay a fine of 7,501 euros for a very serious infraction, in accordance with article 23 of the Law on Infractions and Sanctions in the Social Order. Both were considered jointly and severally liable for the restitution of the amounts obtained improperly.
Failed defense attempt
The employer filed an appeal with the Juzgado de lo Social nº 1 of Oviedo, arguing that the employment relationship was legitimate and that there was no fraudulent intention. Still, the court rejected the arguments and upheld the decision, says the same source.
The Superior Court of Justice of Asturias also rejected the appeal, highlighting that there was no evidence that Manuela had actually worked in Mariana’s house, nor that there was an actual need to hire a domestic worker.
For the judges, the coincidence between the end of the alleged contract and the moment in which the woman reached the minimum period of discounts required was “too perfect to be a coincidence”, according to El Comercio.
A “play” that ended badly
With this decision, the court confirmed that the retirement was granted improperly and that both the worker and the employer acted together. The case has become an example of how Spanish authorities have tightened control over fictitious contracts used to secure reforms or contributory support.
If it were in Portugal
In Portugal, similar situations would be analyzed by the Authority for Working Conditions (ACT) and Social Security, entities that can identify signs of false employment relationships through data crossing and inspection actions.
The Portuguese Penal Code provides for the crime of Social Security fraud, punishable by a prison sentence of up to three years or a fine, when someone improperly obtains or attempts to obtain social benefits, such as pensions or subsidies.
Interestingly, both in Portugal and Spain, Social Security systems increasingly use digital tools and automatic crossing of banking and contribution information to detect suspicious situations.
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