State Budget for 2019 - Employment and Social Security matters
Labor and Employment Law Commentary 1-2019
The State Budget for 2019 was published. Please find below the major changes on employment and Social Security matters:
1. Deadline to request payments to Portuguese Wage Guarante Fund
The 1 year deadline to request payments to Portuguese Wage Guarantee Fund is suspended:
Since an insolvency procedure is initiated until 30 days after a judicial decision is issued declaring the employer’s insolvency;
Since the a special financial recovery procedure (“processo especial de revitalização”) is requested until a final decision is issued;
Since the requisition of a extrajudicial company recovery (“procediemnto extrajudicial de recuperação de empresas”) until a fanal decision is issued.
2. Social Security
2.1 Increase of unemployment subsidy
The 10% increase of the daily amount of the unemployment subsidy is maintained during 2019:
(a) When both parents from the same household are receiving unemployment subsidy and have dependent children, allowing both parents to benefit from the 10% increase of the unemployment subsidy;
(b) When a single household parent is receiving unemployment subsidy.
2.2 Crime of fraud against Social Security
Regarding the crime of fraud against Social Security, the amounts that have to be included in the monthly declaration to Social Security will no longer be considered relevant to determine the crime’s sanction.
The hiding of facts or unreported amounts that shall be reported to Social Security is now expressly considered also a crime of fraud against Social Security.