Home » News » Correction to the simplified lay-off diploma stops layoffs – O Jornal Económico

Correction to the simplified lay-off diploma stops layoffs – O Jornal Económico

A rectification to the initial diploma of the simplified lay-off, published today, warns that no company worker who uses this support can be the target of collective dismissal or extinction of the job.

The decree-law with the rules and conditions for accessing the simplified lay-off, approved and published on Thursday, determines, in Article 13 that “during the period of application of the support measures (…) as well as in the 60 following days, the employer cannot terminate labor contracts for workers covered by those measures, under the terms of collective dismissal or dismissal for extinction of the job ”.

The newsroom opened the way for workers in the same company to be put on ‘lay-off’ (by suspension of the employment contract or reduction of hours) to be protected from dismissals but the same was not true of colleagues who were not in ‘ lay-off ‘.

A correction to article 13, now published in Diário da República, eliminates that difference in treatment and protects workers who do not go into ‘lay-off’ from dismissal. In the new wording, it is determined, therefore, that “during the period of application of the support measures provided for in this decree-law, as well as in the following 60 days, the employer covered by those measures cannot terminate employment contracts under the modalities of collective dismissal or dismissal for extinction of the job ”.

The simplified ‘lay-off’ is part of the package of measures approved by the Government to help companies whose activity is being affected by the covid-19 outbreak.

Thus, companies or establishments whose total or partial closure has been decreed by decision of the political or health authorities can access the simplified “lay-off”.

Also companies that have to stop all or part of their activity due to the interruption of global supply chains, or the suspension or cancellation of orders can join the measure.

Companies that have a drop of at least 40% of their turnover compared to the previous month or the same period may also have access to the simplified “lay-off”.

Companies that join can reduce the wages of their workers, following the general rules set out in the Labor Code for ‘lay-off’ situations, with this remuneration financed by 70% by Social Security and by 30% by the employer.

In case of suspension of the contract, workers are entitled to receive two thirds of their gross normal wage, with the guarantee of a minimum amount equal to the national minimum wage (635 euros) and with a maximum limit corresponding to three minimum wages (1,905 euros).

In situations of reduced hours, the salary is guaranteed, calculated in proportion to the hours worked.

When granting support, companies are exempt from the Single Social Rate (TSU), but workers will have to deduct 11% from Social Security.

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