Employment Support Measures

Employment Support Measures

Currently there are two regimes in force, the extraordinary support for the maintenance of employment contracts in business crisis situations, called simplified lay-off, established in Decree-Law 10-G/2020, of 26 March, and the extraordinary support for the gradual resumption of activity in companies in business crisis situations, established by Decree-Law 46-A/2020, of 30 July and extended by Decree-Law 6-C/2021, of 15 January.

Simplified lay-off

Companies and establishments that are subject to the duty of closing facilities and establishments by legislative or administrative determination from a government source, in the context of the COVID-19 disease pandemic, may have access to the extraordinary support for maintaining an employment contract in a business crisis situation, called simplified lay-off, provided for in Decree-Law 10-G/220 of 26 March.

We recall that this is an extraordinary financial support granted to the company, per employee, destined exclusively for the payment of wages, during the period of temporary reduction of working hours or suspension of employment contracts.

The legislative amendment refers only to the amounts that will be received by workers.

Therefore, the value of the compensation paid by social security is increased to the extent strictly necessary to ensure the gross normal retribution, up to a maximum of three times the value of the RMMG.

This support has an initial duration of up to one month and may be extended on a monthly basis as long as the duty to close services is maintained.

Progressive resumption

The extraordinary support for the gradual resumption of business activity is aimed at employers who have been affected by the COVID-19 pandemic and who are consequently in a situation of business crisis, i.e. with a fall in turnover of 25% or more.

We recall that this is a financial support given to the employer, created to support the maintenance of jobs in companies in business crisis, with temporary reduction of the normal working period of all or some of their employees.

From January 2021, it also covers members of statutory bodies performing management functions, that are listed on remuneration statements, and if the employer has at least one employee in service.

The reduction of the normal working period is subject to the following limits:

 

Maximum reduction of the normal working period
Revenue Breakage => 25% => 40% => 60% => 75%
Maximum Reduction of the Normal Working Period 33% 40% 60% 75% a 100%

 

The extraordinary support for the gradual resumption of activity with a temporary reduction of normal working hours is effective from 1 January to 30 June 2021.

Accumulation of Support

The employer cannot benefit from both the progressive take-over support and the extraordinary support for the maintenance of jobs, provided for in Decree-Law No. 10-G/2020 of 26 March, as currently worded (simplified lay-off).

Filipa Botelho Moniz

Filipa Botelho Moniz

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