Government approves simplified layoff until July

Government approves simplified layoff until July


The Council of Ministers today approved a set of measures to support companies and workers, namely the extension of the simplified layoff to the month of July.

The creation of a stabilization supplement for workers with a basic remuneration equal to or less than twice the minimum guaranteed monthly remuneration and an extraordinary incentive to normalize business activity were other measures approved.

The decree-law appears in the framework of the Economic and Social Stabilization Program and aims, according to the statement released at the end of the meeting, to “maintain employment contracts in situations of business crisis” and “employment protection, within the scope of the pandemic. Covid-19".

At the press conference after the meeting, the Minister of Labor, Solidarity and Social Security, Ana Mendes Godinho, referred to the extension of the simplified layoff for the month of July, adding that “the possibility of appeal was also approved” to this instrument "for companies that remain closed or with activity suspended due to health reasons".

Regarding the stabilization supplement, Ana Mendes Godinho said that it will be paid in July to workers who earn up to two minimum wages per month, who have been covered by the simplified lay-off and who have had a loss of income.

The operation will be carried out by Social Security, so workers, as the minister appealed, must have “all their elements updated” in Social Security Direct.

Regarding the extraordinary incentive measure for the normalization of activity, Ana Mendes Godinho said that it is aimed at companies that are no longer in a simplified layoff:

“It is a financial support instrument to reinforce the liquidity of companies and constitutes an option for companies to choose between two possible mechanisms: to have financial support corresponding to a minimum wage per worker, which has been covered by the measure of“ layoff ” simplified, or support corresponding to two minimum wages ”, said the minister.

In the second option, the counterpart will be, explained the minister, the need to maintain the company's employment level during the six months of application of the measure.

However, companies may "have a 50% reduction in TSU" on workers who were covered by the simplified "layoff" measure, in the first months of its application.

The option of two minimum wages will also allow companies to have a total exemption from TSU "if they have net job creation, at the end of these six months' application".

Ana Mendes Godinho also said that these are instruments to support the resumption of business activity and an alternative to the new “post-layoff” instrument, which is awaiting authorization from the Assembly of the Republic within the scope of the approval of the Supplementary Budget.

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