Government measures in key jurisdictions 4th edition - Flipbook - Page 102
Portugal
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Protection of employment: under the above mentioned support measures, as well as in the following 60
days, the employer may not terminate the contracts of employees covered by such measures, under
collective dismissal and dismissal for termination of the job. Notwithstanding the discussion that has taken
place regarding the possibility of executing settlement agreements based on objective reasons (e.g., based
on the possibility to promote job extinction or collective dismissal), pending the support measures or within
60 days thereafter, it is recommended that companies do not take this risk (at least until the legislation
approved regarding support is changed and this hypothesis is taken into consideration).
•
Justified absences and possibility for employees to execute their activity through telework:
Immunosuppressed employees and those with chronic disease who, according to the guidelines of the
health authority, should be included in risk groups (in particular cardiovascular patients, those with chronic
respiratory disease, cancer patients and those with renal insufficiency), may justify their absence from work
by means of a medical declaration, provided that they cannot perform their activity in a telework regime or
through other forms of activity. The medical declaration referred to must attest the health condition of the
employee that justifies his special protection. Additionally, without prejudice to the possibility of adopting
the telework regime under the general terms provided in the Portuguese Labor Code, this regime is
mandatory when requested by the employee, independently of the labor relation and whenever the
functions in question allow it, in the specific case, such as if the employee, through medical certification, is
covered by the exceptional regime of protection for immunosuppressed and chronically ill people.
Insolvency
Has the government
made any changes
to insolvency
legislation?
Contractual
Issues
What measures
have been taken
to reinforce
contracts?
•
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.
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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.
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