New “layoff”: companies with 75% losses and workers with 88% of salary | Covid-19

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Only companies that register billing losses above 75% will be able to benefit from the Government’s support regarding the total reduction of working hours, said Labor Minister Ana Mendes Godinho this Wednesday.

The governor spoke to journalists before entering the meeting of the Permanent Commission for Social Coordination (CPCS), which has on the agenda the situation arising from the covid-19 and the Recovery and Resilience Plan.

“The objective is to support employment and support the maintenance of jobs in companies that are currently having more difficulty in resuming activity, with a greater drop in turnover, that is, those that have a drop in activity above 75%”, said Ana Mendes Godinho.

For the Minister of Labor, the intention of the measure is thus “to support companies with major revenue losses and that are not managing to recover with the great objective of maintaining employment, supporting training and guaranteeing workers’ income”.

The minister declined to give further details before they were discussed with the partners, but the UGT secretary general, Carlos Silva, told journalists, also before entering the meeting, that the Government’s intention is that workers maintain a remuneration “not less than 88% of the salary, the contribution being exactly the same”.

“We are more relaxed, but there are other matters that we need to safeguard and that we will analyze at the social consultation meeting, namely how long this situation can be maintained for workers and companies”, he said.

CGTP’s secretary general, Isabel Camarinha, in turn, told journalists that this measure should be extended to small and medium-sized enterprises (SMEs), safeguarding the coverage of all sectors, and considered that salaries should be paid to 100%.

On Monday, Economy Minister Pedro Siza Vieira announced that support for the progressive recovery will be made more flexible in order to allow companies with significant losses to maintain the regime of total reduction in work capacity.

At issue is the flexibility of the support measure that came to replace the layoff simplified and which, unlike this, does not allow companies to suspend the employment contract, but only the reduction of hours due to the break in activity.

THE layoff simplified was replaced in August by the measure to support the progressive recovery and by the extraordinary financial incentive to normalize business activity (which includes support equivalent to two minimum wages per worker paid over six months or one minimum wage paid at once) .

This Wednesday, in addition to the Minister of Labor, Solidarity and Social Security, Ana Mendes Godinho, and the Minister of State, Economy and Digital Transition, Pedro Siza Vieira, the meeting will be attended by the Minister of Planning, Nelson de Souza, also with two members from each union confederation and one member from each employer confederation.

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