Covid-19: Amendments to the Simplified Lay-Off in Portugal

published on March 2020 | reading time approx. 1 minute

Decree-Law no. 10-G/2020 of March 26 entered into force today, revoking all previous extraordinary legislation and extending the Simplified Lay-off regime, which now applies in the following cases:

1. Total or partial closure of the company or establishment, which has been decreed by decision of the political authorities (state of emergency or other legislative or administrative determination); or determined by health authorities, in relation to establishments or companies effectively closed and covering the workers directly affected to them.
2. Total or partial stoppage of the company's or establishment's activity resulting from the interruption of global supply chains, or the suspension or cancellation of orders, which can be documented.
3. Abrupt and accentuated break of at least 40 per cnet of the invoicing in the thirty-day period prior to the order, with reference to the monthly average of the two months prior to that period, or in relation to the same period of the previous year, or even, for those who started the activity less than 12 months ago, the average of that period.

The support may also be requested both in cases where the worker continues to work with a temporary reduction of his normal working period, and in cases where he ceases to work and the employment contract is suspended.
 

In cases where the contract is suspended, the worker receives the equivalent of two thirds of his salary, 70 per cent of which is provided by Social Security and 30 per cent by the employer - at least equal to the national minimum wage and at most three times the minimum wage.
 

In the event of a reduction in the period of work, the salary is paid in proportion to the workload maintained, with the minimum being the equivalent of two thirds of their salary or 635 euros, whichever is greater.
 

The measure also entitles the employer to full exemption from payment of contributions to the Social Security.

The support will last for 1 month, being, exceptionally, extendable on a monthly basis, and will be up to a maximum of three months.