Lamares, Capela & Associados
  • About Us
  • Activity Areas
    • Corporate
    • Golden Visa
    • Real Estate
    • Portuguese Nationality
    • Non-Habitual Resident Status (NHR)
    • Visas and Residence Permits in Portugal
    • Sucession Law
    • Family Law
  • Know-how
    • News
    • Publications
  • Contacts
  • English
    • Portuguese (Portugal)
  • Search
  • Menu Menu

COVID-19 – measures to support companies and maintain jobs

Corporate
rules

 

Information Note Update

 

COVID-19 –  Extraordinary measures to support companies and maintain jobs

 

In order to prevent and contain the pandemic of COVID-19, the portuguese government imposed a set of measures which determined, with a few exceptions, the compulsory shutdown of commercial establishments and retail stores, as well as the suspension of services and the preference towards teleworking, when the worker’s presence at his work place is not deemed necessary.

Due to the strong impact of these measures on the economic life of companies, the Government has also enacted some measures of extraordinary, temporary and transitory support, in order to mainatin jobs and mitigate situations of business crisis (simplified lay-off)

 

Which companies will have access to the simplified lay-off?

The simplified lay-off will be extended to support companies with a wider range of situations:

  • All establishments and activities that have been forced to shutdown due to the measures adopted by the health authorities or due to the application of the state of emergency;
  • Companies that may have been totally or partially paralyzed due to a loss of supplies and reserves, even if these have not yet been invoiced, namely companies that have a reduction of more than 40% in their production capacity due to the cancellation of supplies;
  • Companies which shutdown has not been decreed, and which do not yet have a 40% drop, if they have a drop in revenue compared to the average of the previous two months, or the same period last year.
  • Companies that suffered an abrupt and sharp revenue drop of at least 40%, in the 30 days prior to the request directed to Social Security with reference to the same period in the prior year; or for those who started the activity less than 12 months ago, to the average of that period.

 

General requirements to benefit from extraordinary support measures

In addition to being in a business crisis situation, the company must have its tax status regularized before Social Security and the Tax and Customs Authority.

 

What kind of support is available to these companies?

  1. Extraordinary support for maintaining existing jobs; or
  2. Extraordinary training plan;
  3. Extraordinary financial incentive to support the normalization of the company’s activity;
  4. Temporary exemption from the payment of Social Security contributions.

 

Note: These supports can be combined with others that the company already benefits from.

 

  1. Extraordinary support for maintaining existing jobs

Financial support equal to 2/3 of the employee’s gross salary, up to a maximum of 3 x RMMG (€ 1905.00), with the duration of 1 month, extendable monthly up to a maximum of 6 months, in exceptional situations. 70% will be covered by Social Security and 30% by the employer. The amount paied to the employee cannot be less than the RMMG.

It can also be combined with a training scholarship in the amount of 30% of the IAS, totaling € 131.64: half for the employee (€ 65.82) and half for the employer (€ 65.82).

In order to access this financial support, the employer has to inform, in writing, the employees covered by these aids, of the decision to apply to Social Security for extraordinary support for the maintenance of jobs. The employer also has to inform the expected period of interruption of the activity, after hearing the union delegates and commissions of workers, when they exist.

 

How to proceed?

  • The employer must submit an application, in its own model, to the Social Security Services
  • The application must be submitted through the “Segurança Social Directa” (the Social Security digital platform) and the IBAN must be registered/amended there so that Social Security can pay the support to the employer, who will be responsible for paying the employee;
  • The employer should list and identify the employees covered through their Social Security Identification Number (NISS).

 

2. Extraordinary training plan

Companies that have not resorted to extraordinary support for maintaining existing jobs can access extraordinary support for part-time training, which lasts for 1 month to implement the training plan.

This measure aims at maintaining jobs and reinforcing workers’ skills, in order to preemptively act against unemployment, supporting the training of non-employed workers in productive activities for considerable periods.

Each employee is to be given a certain amount of financial support based on the hours of training attended, and it cannot exceed 50% of employee’s gross salary, with the maximum limit of RMMG (635 €).

To access this financial support, the employer must inform employees in writing of the decision to initiate a training plan as well as the expected duration of the said measure, immediately sending notice to IEFP, IP, accompanied by a statement from the Administration and a certificate from the Certified Accountant.

 

Training Plan requirements:

  • It must be implemented in articulation with the entity. The IEFP is responsible for its organization, with it being able to be executed at a distance when possible and the conditions allow it
  • It must contribute to the improvement of workers’ professional skills, whenever possible increasing their level of qualification, and contributing to increasing the company’s competitiveness;
  • It must correspond to the different types of professional qualification provided for under the National Qualifications System;
  • Its duration must not exceed 50% of the normal working period during the period in which it takes place;
  • The minimum number of trainees to be included in each training action is defined by agreement between IEFP and the employer.

 

  1. Extraordinary financial incentive to support the normalization of the company’s activity

This financial support results in the payment of an amount corresponding to RMMG (635 €) per employee and shall be paid all at once.

To access this support, the employer must submit an application to the IEFP, I.P., accompanied by documents that attest to the situation of business crisis.

 

How to proceed?

The request for financial support is made by submitting an application and filling out a form available on the iefponline Portal, accompanied by the following documents:

  • Accounting balance sheet referring to the month of support, as well as the corresponding same month or previous months, when applicable
  • VAT declaration for the month of support, as well as for the two immediately preceding months, or the declaration for the last quarter of 2019 and the first quarter of 2020, according to the VAT regime in which the company is;
  • Additional supporting elements, to be established by the member of the Government responsible for the area of Labor and Social Security

 

  1. Temporary exemption from the payment of Social Security taxes

 Total exemption from the payment of Social Security taxes by the employer, the employees covered and members of the statutory bodies, during the term of the extraordinary measures. This means that employers submit autonomous salary declarations for the workers covered and pay the respective taxes, only in the part that concerns the worker – 11%.

To access this aid, the employer only has to make sure that the company is covered by one of the extraordinary measures mentioned above.

Note: Until April 30, the contributory debts contracted in March 2020 are not considered. The Decree-Law takes effect until June 30, and can be extended for another three months depending on the evolution of COVID-19 and its economic and social conequences.

 

How to proceed?

  • The assignment is officiously done by Social Security services.

 

Inspection and non-compliance

The entities benefiting from the aforementioned aid can be inspected at any time by the competent public authorities.

Failure to comply with the aid obligations implies its immediate cessation and restitution.

Employers that do not observe the legal rules regarding the temporary reduction of the normal working period, as stipulated in the Labor Law, incur in administrative offenses.

1 April, 2020/by Lamares Capela
Tags: coronavírus, corporate, covid-19
Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on WhatsApp
  • Share on LinkedIn
  • Share by Mail
https://lamarescapela.pt/wp-content/uploads/2020/03/fusion-medical-animation-rnr8D3FNUNY-unsplash.jpg 2250 4000 Lamares Capela https://lamarescapela.pt/wp-content/uploads/2019/02/laca-logo-horiz-branco-1.png Lamares Capela2020-04-01 14:07:072022-01-07 23:56:56COVID-19 – measures to support companies and maintain jobs
You might also like
restrictive Restrictive measures on air traffic in Portugal until 15 July
portugal Portugal is an example in the response to COVID-19
OfficesUnsplash Offices in Lisbon and Porto with atypical 2022
rules COVID-19 – Use of outdated documents and new rules for the functioning of public services
rules COVID-19 – Extraordinary measures to support companies and maintain jobs
china China invests 2.5 billion euros in Golden Visas
tráfico aéreo New air traffic rules in November
residence permits COVID-19 – Appointments, Schedules and Pending cases at SEF

Recent posts

  • Portuguese emigrants return to their home country for good
  • Alentejo at the top of the cheapest areas to buy a house in Portugal
  • Portugal awarded 200 visas to digital nomads in less than three months
  • Investment: Portugal registered the second highest number of new companies ever in 2022
  • Lisbon candidate for UNESCO World Heritage

Archives

Categories

  • Corporate
  • Golden Visa
  • Nationality
  • Non-habitual Resident
  • Real estate
  • Uncategorized
  • Visas and Residence Permits

Contact us
(+351) 911 942 346
info@lamarescapela.pt

Know-how
News
Publications

© Copyright - Lamares, Capela & Associados | Powered by: MCBS
  • Privacy Policy
  • Terms of Use
COVID-19 – Appointments, Schedules and Pending cases at SEFresidence permitstax obligationsCovid19 – Exceptional regime for compliance with tax obligations and social...
Scroll to top

ATTENTION: This site uses cookies. By browsing the site, you are consenting to its use. Learn more about the use of cookies.

OK+ INFO

Cookie and Privacy Settings



How we use cookies

We may request cookies to be set on your device. We use cookies to inform us when you visit our website, how you interact with us, to enrich your user experience and to personalize your relationship with our website.

Click on the different category titles to find out more. You can also change some of your preferences. Please note that blocking some types of cookies may affect your experience on our websites and the services we may offer.

Essential Cookies

These cookies are strictly necessary to provide you with services available through our website and to use some of its features.

As these cookies are strictly necessary to deliver the website, you cannot refuse them without affecting the functioning of the website. You can block or delete them by changing your browser settings and forcing the blocking of all cookies on this website.

Google Analytics Cookies

These cookies collect information that is used in aggregate to help us understand how our website is being used or how effective our marketing campaigns are, or to help us customize our website and app to improve your experience.

If you don't want us to track your visist on our site, you can disable tracking in your browser here:

External services

We also use different external services like Google Webfonts, Google Maps and external video providers. As these providers may collect personal data such as your IP address, we allow you to block it here. Please be aware that this can greatly reduce the functionality and appearance of our website. The changes will take effect as soon as you reload the page.

Google WebFont settings:

Google Maps settings:

Vimeo and Youtube embedded videos:

Privacy Policy

You can read about our cookies and privacy settings in detail on our Privacy Policy Page

Política de privacidade
Accept settingsHide notification only