Government measures in key jurisdictions 3rd edition final - Flipbook - Page 98
Portugal
Employment
What
financial support is
the government
providing to
businesses and to
individuals on
employment
issues?
•
•
•
•
•
Insolvency
Has the government
made any changes
to insolvency
legislation?
Contractual
Issues
What measures
have been taken
to reinforce
contracts?
98
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”).
: under the simplified lay-off procedure, the employer may
temporarily reduce normal working periods or suspend employment contracts, and the employee is
entitled 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. The simplified lay-off, which initially was supposed to be in
force only until 30 June 2020, can now be extended until 31 July 2020 in case of companies that have
already resorted to it and have reached the maximum renewal limit by 30 June 2020 and in case of
companies and business establishments that remain closed down. Simplified lay-off is also available to
those companies that have not yet accessed this regime, which can only submit their initial application up
to 30 June 2020, with the possibility of a monthly extension of up to 3 months (i.e. up to 30 September
2020).
: the employer is exempted from paying contributions to the Social
Security for employees covered by the lay-offmeasures.
: during the period of lay-off, as well as in the following 60 days, the employer
may not terminate the 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 authorised 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.
•
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’s 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