Two of the most important measures approved during the state of emergency were the simplified lay-offs and the extraordinary training plan. Changes have now been made to the simplified lay-off regime and other employment protection measures have been approved. It is these measures that need to be detailed and analysed.
Garrigues has been publishing this newsletter since March 23 in an effort to bring you all the regulatory matters that week in week out required particular attention by companies in every area of business law. Since the state of emergency is about to finish, this will be the last edition of a publication that we hope has served its purpose. From now on, we will continue to keep you informed in our usual formats (Alerts, Commentaries, Viewpoints or Newsletters).
It was published in the official gazette the Ministers Council Resolution no. 41/2020, of 6 de June, approving the Social and Economic Stabilization Plan (SESP) that introduces a package of exceptional measures on economic and social matters. Regarding Labor and Social Security Law, the following measures are to be highlighted:
It was published on the official gazette the Ministers Council Order no. 40-A/2020, of 29 May, extending the Calamity State under the COVID-19 pandemic and rules the new de-confinement phase in Portugal. Among other measures, it should be highlighted the amendments introduced on telework and work organization in the companies, in force from June 1st, 2020, onwards.
Preparation of financial statements and corporate income tax, recommencement of time periods, remote trials, gradual return to workplaces, insolvency proceedings and compliance with criminal law
New guarantee facility, extension of ERTE temporary layoff procedures, effects of the crisis on transfer pricing, return to judicial activity and ‘shields’ for businesses.
Royal Decree-Law 18/2020 allows ERTE layoff procedures due to force majeure to be extended until June 30, 2020 and also specifies, among others, an extension of the term for relief from social security contributions and for the job retention clauses, in addition to placing certain restrictions on dividend distributions at companies that have implemented an ERTE temporary layoff procedure. The provision not allowing dismissals on grounds related to COVID-19 to be held justified is also extended until June 30, 2020.