Coronavirus: Employment support measures

At the beginning of the pandemic, the Scheme for Granting Support to Workers and Companies Affected by the COVID-19 Pandemic was created under Decree-Law No. 10-G/2020 of 26 March. This scheme essentially provided for what is known as the simplified layoff.

Subsequently, the Extraordinary Support for the Progressive Resumption of Activity in Companies in Situations of Business Crisis (“Progressive Resumption Support”) was created and approved by Decree-Law 46-A/2020 of 30 July, and it is expected to be in force until 31 December 2020.

Provision was also made for the Employment Support and Extraordinary Incentive for Normalisation of Business Activity scheme, which was approved by Decree-Law 27-B/2020 of 19 June (“Support for Normalisation”).

A temporary reduction in normal working hours or a suspension of the employment contract due to the employer are also in force. These are provided for in articles 298 et seq. of the Labour Code and are normally referred to as a layoff.