Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure PT-2020-13/433 – Updated – measures in Portugal
Country | Portugal , applies nationwide |
Time period | Temporary, 27 March 2020 – 30 June 2021 |
Context | COVID-19 |
Type | Legislations or other statutory regulations |
Category |
Promoting the economic, labour market and social recovery into a green future
– Measures to support a gradual relaunch of work |
Author | Heloisa Perista and Maria da Paz Campos Lima (CESIS) |
Measure added | 09 April 2020 (updated 10 May 2021) |
This exceptional and temporary measure, set by Decree-Law 10-G/2020 of 26 March, aims to respond to the COVID-19 pandemic, aiming at maintaining employment and the mitigation of situations relation to business crisis for companies.
Following the period of temporary reduction of the normal working time or suspension of the employment contract provided for in the legislation under simplified conditions, businesses are entitled to an extraordinary financial incentive to support the normalisation of the activity, in order to facilitate a gradual relaunch of work.
The Resolution of the Council of Ministers no. 41/2020, of 6 June, extends the extraordinary support for the maintenance of employment contracts and establishes a transitional regime replacing the regime in force of ‘simplified layoff’ by a support to progressive recovery.
Companies in crisis situation as a result of:
Following the period of temporary reduction of the normal working time or suspension of the employment contract provided for in the legislation under simplified conditions, the employers are entitled to this temporary and extraordinary financial incentive to support the upturn of the business activity.
This incentive is paid as a lump sum by the Institute of Employment and Vocational Training (Instituto do Emprego e Formação Profissional, I.P. - IEFP, I.P.).
The amount to be paid is equal to the value of one national minimum wage per worker.
The following updates to this measure have been made after it came into effect.
15 January 2021 |
The Decree-Law n.º 6-C/2021, of 15 January, extends the extraordinary support for the progressive recovery of activity in companies in a situation of business crisis. This legal diploma establishes:
|
13 July 2020 |
The Resolution of the Council of Ministers no. 41/2020, of 6 June, that approved the Economic and Social Stabilization Programme extends the extraordinary support for the maintenance of employment contracts and establishes a transitional regime replacing the regime in force of ‘simplified layoff’ by a support to progressive recovery (2.2.1). It introduces also a one-off measure, the Stabilisation Complement to improve income of workers under layoff (2.3).
|
Information released by the Ministry of Labour, Solidarity and Social Security (MTSS) – April 2020 - 'COVID-19 | Informação relativa a famílias e empresas no âmbito do MTSSS'
Information on 7 April:
Layoff around 40,000 companies/ encompassing around 642,000 workers. In terms of sectors 24.2% are companies in the Accommodation and Food Services, 19.9% in Wholesale and Retail, 9.3% in Manufacturing Industry and 8.9% in Human Health and Social Support Activities.
Information on 6 June:
According to the information provided by the Resolution of the Council of Ministers 41/2020, of 6 June, that approved the Economic and Social Stabilization Programme, the simplified layoff regime covered around 100,000 companies and 800,000 workers.
Workers | Businesses | Citizens |
---|---|---|
Does not apply to workers | Applies to all businesses | Does not apply to citizens |
Actors | Funding |
---|---|
National government
Public employment service |
European Funds
National funds |
Social partners' role in designing the measure and form of involvement:
Trade unions | Employers' organisations | |
---|---|---|
Role | Consulted | Consulted |
Form | Consultation through tripartite or bipartite social dialogue bodies | Consultation through tripartite or bipartite social dialogue bodies |
Social partners' role in the implementation, monitoring and assessment phase:
Tripartite consultation involving the government, the trade union confederations CGTP and UGT and the employer confederations CIP, CCP, CTP and CAP at the Standing Committee for Social Concertation.
Social partners were consulted at the Standing Committee for Social Concertation. Their views are not known.
Citation
Eurofound (2020), Extraordinary financial incentive to support the normalisation of business activity, measure PT-2020-13/433 (measures in Portugal), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/PT-2020-13_433.html
Share
30 January 2023
Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.
Article12 September 2022
Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.
Article12 September 2022
This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.
Article5 July 2022
This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.
ArticleDisclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.