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Portugal: Decree-Law amending the Regime for Support to Progressive Resumption is published

Portugal - 

Portugal Labor Alert

As the Government had already announced, with the publication of Decree-Law n.º 32/2021, May 12th, surgical amendments were made to Decree-Law n.º 46-A/2020, July 30th.

Based on changes to article 5.º of Decree-Law 46-A/2020, July 30th, (i) not only in the month of May 2021 is it possible for a Company to reduce the normal work period, per employee, up to 100%, but also (ii) this same reduction is possible in the month of July, but up to a limit of 75% (percentage assessed by the declarations of remuneration for the month of June 2021) for employees at the service of the Company (this limit may be readjusted, according to assessments to be carried out in June 2021 by the Government).

With respect to the month of June 2021 and alternatively, Companies may reduce up to 75% of the normal work period for all employees at their service.

Pertaining Companies associated with the bars, discotheques, and other sectors (covered by an ordinance from the members of the Government), in the month of June 2021, the reduction in normal working hours may be up to 100%, with no limit as to the number of employees.

Lastly, with regard to the simplified support measure for micro-companies to maintain job positions, it isn’t possible, pending the support measure and for the following 90 days, to terminate employment agreement, on the basis of collective dismissal, termination due to job extinction or maladjustment, nor to initiate the respective procedures.

Decree-Law n.º 32/2021, May 12th takes effect on May 1st 2021.