COVID-19: Strengthening of the support measures for employees and employers in Portugal

Amendments to Decree-Law n.º 46-A/2020, July 30th

• Employers can benefit from extraordinary support for the progressive resumption of activity until September 30^th 2021.

• As for the retributive compensation to which the employee is entitled, for the hours not worked and paid by the employer, it remains in the amount of four fifths of his normal gross remuneration, with the confirmation that his maximum ceiling will be triple the minimum monthly guarantee remuneration (€ 1,995.00). This amendment takes effect on January 1^st 2021.

• As regards to partial exemptions and waivers concerning the payment of social security contributions, there is an update pertaining employers in the sectors of tourism and culture, in the months of March, April and May 2021, depending on their revenue breakdowns.

• Article 4.º has been added regarding the exceptional postponement of training plans.

• Amendments were made to article 14.º-A – simplified support measure for micro-enterprises for the maintenance of job positions – highlighting (among others) the extent of the employer's obligation to maintain the level of employment observed in the month prior to the application after the period for granting support, transitioning from 60 to 90 days, as well as (if certain conditions are met) being able to require an additional minimum monthly guarantee remuneration between July and September 2021.

Amendments to Decree-Law n.º 6-E/2021, January 15th

• Article 2.º (as previously announced by the Government) was amended, being promoted the widening access to the extraordinary support mechanism for the maintenance of employment agreements in a situation of business crisis (commonly referred to as “simplified lay-off regime”), regulated in the terms of Decree-Law n.º 10-G/2020, March 26^th.

• Under the terms of the new number 2, of article 2.º of the this Decree-Law, employer can access the simplified lay-off, in accordance with the terms of sub-paragraph i), of paragraph b), of number 1, of article 3.º, of Decree-Law n.º 10-G/2020, March 26^th, in cases of complete or partial stop of the activity or establishment higher than 40%, in the month prior to the application to be made in the month of March and April 2021, and that results from the interruption of global supply chains, or from the suspension or cancellation of orders, in situations where more than half of the invoicing in the previous year was made to activities or sectors that are currently suspended or closed by legislative or administrative determination of governmental source.

Updates from Decree-Law n.º 23-A/2021, March 15th

• Article 5.º of the Decree-Law disciplines the “new incentive to normalize business activity”, for employers who, in the first quarter of 2021, have benefited either from the simplified lay-off regime (under the terms of article 2.º, of Decree-Law n.º 6-E/2021, January 15^th), or the extraordinary support measure for the progressive resumption of activity, provided for in article 4.º of Decree-Law n.º 46-A/2020, July 30^th (in its current wording).

• This new incentive is granted, per employee covered by the support measure, according to the criteria defined in article 5.º:

1. if required until May 31^st 2021, it will be in the amount corresponding to 2 minimum monthly guarantee remuneration (€ 1,330.00) and paid in stages over the course of 6 months;

2. if required later than May 31^st 2021 and with the limit of August 31^st 2021, it will be in the amount corresponding to 1 minimum monthly guarantee remuneration (€ 665.00), paid in a single payment, corresponding to the 3 months period.

• This new incentive, similar to what happened with the extraordinary incentive for the normalization of business activity, will be regulated by an Ordinance of the Government member responsible for the labor area, namely concerning the procedures, conditions and terms of access.

Decree-Law n.º 23-A/2021, March 24^th enters into force on the day following its publication.