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‘Layoff’ will continue but will evolve into a new model

The prime minister said today that the ‘lay-off’ regime, within the scope of the new economic and social stabilization program, will evolve into a mechanism that allows both to maintain employment and not to penalize workers’ incomes.

António Costa was speaking after receiving the social partners, in São Bento, at a press conference in which he said that the economic and social stabilization program will be approved next week in the Council of Ministers.

One of the four pillars of this program, according to the executive’s leader, has to do with the objective of maintaining jobs.

“The simplified ‘lay-off’ is a measure that has so far allowed to preserve more than 800 thousand jobs. It is a measure that necessarily has to evolve from the end of June, namely so that it is not a negative incentive for companies to make the effort they must make to try to resume their activity ”, he justified.

This new ‘lay-off’ model, stressed António Costa, “should not be an instrument that penalizes workers’ income”.

“We have to evolve this instrument so that it continues to be effective in protecting the job, but progressively leaving a factor of loss of income”, he added.

The prime minister said he had received proposals for the revision of the lay-off regime of social partners and parties, concluding that, among all of them, “there are no fundamental incompatibilities” and that it will be possible for the government to “design” a new mechanism that meets the employment objectives.

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