Coronavirus - Government measures in key jurisdictions - Flipbook - Page 64
Portugal
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Employment
What financial
support is the
government
providing to
businesses and
to individuals
on employment
issues?
Insolvency
•
Simplified lay-off: lay-offs, which comprise the temporary suspension of employment
contracts or reduction of the working time, have been given more flexibility and the
procedure has eased significantly (“simplified lay-off”).
•
Extraordinary financial support: under the simplified lay-off procedure, the employer
may temporarily reduce normal working periods or suspend employment contracts, and
the employee is entitled, until 30 June 2020, to a compensation corresponding to 2/3 of
the gross regular salary, with a minimum of €635 per month and a maximum of €1,905
per month. This compensation is paid by the employer, which in turn is entitled to
financial support corresponding to 70% of the amount of the compensation, supported
by Social Security. Employers are entitled to a financial incentive of €635 per employee,
paid in one lump sum, to support the resumption of activity.
•
Exemption from contributions: during lay-off, employers benefit from full exemption of
their share of social security contributions (23.75%).
•
Protection of employment: during the period of lay-off, as well as in the following 60 days,
the employer may not terminate the employment contracts of employees covered by such
measures, under the terms of collective dismissal and dismissal for termination of the job.
•
For more information please visit here.
•
The suspension of procedural terms and authorized judicial proceedings referred to
below is also applicable to insolvency proceedings, notably as regards the term for a
debtor to file for insolvency. This suspension, however, does not prevent the courts
from ordering the performance of any judicial steps that are necessary to prevent
irreparable damage to the legitimate rights and interests of debtors.
Has the
government made
any changes
to insolvency
•
legislation?
Contractual
Issues
What measures
have been taken
to reinforce
contracts?
For more information please visit here.
•
Other than other measures already mentioned herein, there have been limited cases
where specific measures aimed at reinforcing contracts have been put in place. It
worthwhile noting that, in relation to public-private partnerships, during the state of
emergency, contractual mechanisms allowing financing rebalancing are suspended
(such financial rebalancing arising from the pandemic will result in the extension of
the duration of the relevant contract).
•
With the exception of the abovementioned measures, the Portuguese Government
has not taken any further measures to specifically reinforce contracts and, therefore,
the normal rules would apply.
•
It should be taken into account that the force majeure term relates to the impossibility
of the parties to perform their obligations as a result of an event that could not have
been foreseen or that, if foreseen, would be inevitable. In this respect, the scope and
applicability of force majeure would be subject to the specifics of each case, which shall
be, in last instance, examined and determined on a case-by-case basis by judicial courts.
Government measures in key jurisdictions
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