Yes, but only if you are not in default. As previously reported, companies that are under programs of payment of debts to the tax authorities or Social Security by installments can have access to the program, if this restructured compliance is being done on a regular basis. Those who have these unresolved non-compliances, however, cannot access it.
No. What happens is basically an extension of the contracts for the same duration of six months, that is, these installments are postponed (leading to the period of the credit agreement being also extended by six months). If you had a credit that ended in December 2025, it ends in May 2025. For six months you will have more disposable income (by not paying the installment), but you will eventually have to pay what you owe later.
Yes if. Small or large, all companies that can prove the impact of the crisis recent – namely because they were closed in a state of emergency – can access these moratoriums announced by the Government. They are minimum moratoriums for six months, but that some banks have already said that they admit to extending up to 12 months, although, for now, nothing in this new legislation requires them to do so.
The decree that was in force previously provided that companies could access the new layoff (suspension of the employment contract or reduction of hours), in the following situations:
Total stoppage of the activity of the company or establishment that results from the interruption of global supply chains, the suspension or cancellation of orders;
Abrupt and sharp drop of at least 40% of the billing, in the 60 days prior to the application with the social security with reference to the same period or, for those who started the activity less than 12 months ago, the average of that period.
With the changes now approved, the second criterion will change with regard to the period for calculating the break in billing: companies that register a activity break of at least 40% but compared to the previous month or the same period (and not compared to the previous 60 days – two months). Furthermore, it is added a new criterion:
Companies or establishments whose total or partial closure has been decreed “by decision of the political or health authorities” or “by decree of the Government that implements the state of emergency” are eligible, explained Pedro Siza Vieira, after the meeting this Thursday .
Pedro Siza Vieira also stated that the support applies to those who predict a break in activity “in the near future”. “A company that projects that, in the near future, it will have a reduction of more than 40% in its productive capacity or occupation due to the cancellation of orders and reservations can immediately and without other formalities access this benefit immediately”, said the minister .
This Friday. Companies will be able to request the simplified layoff starting tomorrow, the 27th, in the Direct Social Security (SSD). There they will have to fill out a form in which they indicate the criterion to which they correspond and the workers who were in layoff – either by suspension of the employment contract, or by reduction of working hours. The employer only has to submit a “statement from the company’s certified accountant” – that is, he does not have to provide proof of his situation. Still, warned Pedro Siza Vieira, “Social Security may later require this proof”.
Maybe from April, maybe. The government said this Thursday that Social Security “wants to automate the receipt of requests [de layoff] and the processing of payment requests, preferably on a certain date that is known to employers so that they can plan their treasury in these difficult times ”. Asked what date this would be, the Minister of Economy did not clarify. On Monday, Siza Vieira had already guaranteed that payments will start to be made from April.
The layoff regime provides that the employer is to advance the two-thirds of the worker’s salary (the amount the employee receives in this mechanism) and then wait for a refund of 70% of that Social Security amount. Before the pandemic, in the normal regime, this reimbursement could take up to four months to arrive. But in this simplified regime, the Government promises speed.
The Economy Minister was not clear on this point. Pedro Siza Vieira only guaranteed that the support will be “given from the moment the request for support is made” (as we saw, on a specific day), but he did not explain whether there are retroactive effects for March salaries. In other words, it remains to be seen whether companies that at the end of March join the layoff at SSD, will receive, in April, the contribution from March and April.
Monthly, for 3 or 6 months, here’s the question. The decree so far in force defined that support “may be, on an exceptional basis, extendable monthly, up to a maximum of six months”. However, at the press conference this Thursday, Pedro Siza Vieira said that the measure is available “for a period of one month, renewable for the next three months if justified”. The Observer questioned the Ministries of Labor and Economy about the reason for this change, but awaits a response. It will be updated as soon as it arrives.
Yes. Layoff companies are exempt from paying the single social fee and the extraordinary incentive for resuming activity “consisting of a national minimum wage for each job, attributed to the employer after the reopening of the activity, remains,” specified Siza Vieira.
No. The layoff worker receives two-thirds of the gross salary – with a minimum of 635 euros and a maximum of 1,905 euros – but is not exempt from the 11% contribution to Social Security. On the other hand, as only the portion of the salary paid by the employer is subject to IRS – and the employer only pays 30% – the amount is never enough to reach the first step of the IRS withholding table. That is, it is exempt from this tax.
No. One of the conditions to be able to have workers in layoffs – and, therefore, to receive the contribution of Social Security for the payment of wages – is that, “during the period of reduction or suspension, as well as in the 60 days following its application, the employer it cannot terminate employment contracts, through collective dismissal or by extinction of the job, in relation to the workers covered by the support measures ”, states the communiqué of the Council of Ministers. If you dismiss a worker already after accessing the layoff, you will have to refund the amount of the contribution to the State.
Three. Since the simplified layoff regime was announced on March 9, and the ordinance published on 15, the mechanism is now in its third version. It was announced for the first time at a meeting of the social consultation, with the Minister of Labor, Ana Mendes Godinho, guaranteeing that it would be “quickly implemented”. On March 15, it was published in Diário da República and, three days later, on March 18, it underwent changes: the imposition of workers having to take all their vacations before being sent home dropped; the reference period for registering a breach of activity was changed (from three months to two); and the point that allowed the employer to assign workers, temporarily, functions that were not established in the employment contract was eliminated.
Pedro Siza Vieira justifies these changes with the fact that the economic situation has changed “substantially” since the first ordinance was published.
Not yet. In a statement sent last week, CGTP called for the regime to clarify “the rights and guarantees of workers, at least through a direct reference to the provisions of the Labor Code that regulate the temporary reduction of the normal working period or the suspension employment contracts due to the fact that the employer is in a business crisis ”. The Minister of Economy, however, has already guaranteed that the new layoff is an adaptation of the mechanism contained in the Labor Code. That is, at the outset, the rights applied to workers will be the same. It remains to be seen whether this decree of CGTP is satisfied in the decree that is published.