Portuguese Government extends and amends company’s extraordinary aid for the progressive resumption of activity

The main amendments are, summarily, the following:

1. APRA’s extension

APRA was expected to be in force until 30 September 2021. However, Portuguese Government decided to extend it, although not defining a specific date.

Thus, APRA will remain in force until the end of the month in which, by legislative or administrative decision of a Governmental source, restrictive measures on economic activities are in force, namely rules regarding opening hours, occupation or capacity of establishments or events, as well as limitations on the movement of people in the territory, or restrictions on the access of tourists from main tourist source markets, within the scope of the covid-19 disease pandemic.

In this last case, the “main tourist source markets” will be defined by Ministerial Ruling from the members of the Government responsible for the ministries of economy, finance and labor, solidarity and social security.

2. New duty to keep all establishments operational

As of 1 October 2021, the employer will only be able to reduce the normal working periods of its employees under the APRA if it keeps the activity in all its establishments operational.

This obligation may only not be applicable if the establishments have to close due to legal imposition within the scope of the covid-19 disease pandemic.

3. Increase in the period of prohibition of termination of employment contracts and distribution of dividends after the APRA

As of 1 October 2021, it is increased from 60 to 90 days the period during which, after the APRA’s termination, the employer cannot:

1. Terminate employment contracts through collective dismissal, dismissal due to work post extinction, or dismissal for inadequacy, nor initiate the respective procedures;
2. Distribute dividends, in any form, namely by way of withdrawal on account.