Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for case PT-2020-53/1731 – Updated – measures in Portugal
| Country | Portugal , applies nationwide |
| Time period | Open ended, started on 30 December 2020 |
| Type | Legislations or other statutory regulations |
| Category |
Supporting businesses to stay afloat
– Access to finance |
| Author | Heloisa Perista and Maria da Paz Campos Lima (CESIS) and Eurofound |
| Case created | 18 January 2021 (updated 20 July 2021) |
In view of the evolution of the epidemiological and economic situations, the Portuguese Government continues to understand as a priority, in the current context, the following measures:
support for the maintenance of employment; strengthening of mechanisms to support the treasury situation of companies, in particular micro, small and medium-sized companies, which operate in the sectors most affected by the measures reducing social and economic activity, which in recent months have been accentuated; *support for job creation and maintenance; training and qualification.
The Resolution of the Council of Ministers 114/2020 approves (among other measures):
These supports are cumulative with the other measures that have been approved by the Government in recent months to support the economy.
Eligibility conditions: the beneficiary companies have not been subject to insolvency proceedings; do not distribute funds to members; do not effect collective redundancies or extinguish jobs for economic reasons.
The following updates to this measure have been made after it came into effect.
| 14 May 2021 |
Ordinance 102-A/2021, of 14 May, regulates the procedures, conditions and terms of access to the supports to be granted by the Institute for Employment and Vocational Training (IEFP, I. P.):
The new incentive to normalisation aims to promote job maintenance and reduce the risk of unemployment of workers in companies affected by the effects of the pandemic COVID-19, by granting a financial incentive to the employer in the phase of return of their workers to normal work and normalisation of business activity. The simplified support aims to promote job retention and reduce the risk of unemployment for workers in micro-enterprises in a situation of business crisis due to the COVID-19 pandemic, in order to mitigate the respective social and economic consequences, through the attribution of financial support to the employer. Only employers with their head office in mainland Portugal are eligible. The granting of the new incentive and the simplified support will only take place after the application of the preceding social security support ceases. The new incentive is aimed at private employers, including those in the social sector, that have received, in the first quarter of 2021, at least one of the following supports:
The new incentive is granted in one of the following modalities:
The simplified support is aimed at private employers, including those of the social sector, that are considered micro-enterprises, under the terms of paragraph 1 of article 100 of the Labour Code, that are in a situation of business crisis, under the terms of article 3 of Decree-Law 46-A/2020, of 30 July, in its current wording, and that have benefited in 2020 from at least one of the following supports:
Simplified support shall consist of financial assistance amounting to twice the RMMG per worker covered by the measures referred to above, paid in phases over six months. The new incentive and the simplified support are eligible for European funding. |
| 24 March 2021 |
Decree-Law 23-A/2021, of 24 March, amends the scheme that creates the extraordinary support to the progressive resumption of activity in companies in a situation of business crisis with a temporary reduction of the normal working period and the scheme that establishes support mechanisms under the state of emergency. It also creates extraordinary support measures for workers and economic activity in the context of the state of emergency. The following measures were approved:
|
According to the COVID-19 monitoring indicators released by GEP / MTSSS, on 7 May 2021:
| Workers | Businesses | Citizens |
|---|---|---|
| Does not apply to workers |
Solo-self-employed
SMEs One person or microenterprises Larger corporations |
Does not apply to citizens |
| Actors | Funding |
|---|---|
|
National government
|
European Funds
National funds |
Social partners' role in designing the measure and form of involvement:
| Trade unions | Employers' organisations | |
|---|---|---|
| Role | Informed | Informed |
| Form | Not applicable | Not applicable |
Social partners' role in the implementation, monitoring and assessment phase:
The social partners sitting on the Standing Committee for Social Concertation were heard.
Unknown.
Citation
Eurofound (2021), New measures addressed to businesses and employment, case PT-2020-53/1731 (measures in Portugal), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.