Please Read in Conjunction with Portuguese source document here
faq medidas excecionais e temporárias de resposta à epidemia covid19 apoios extraordinário à manutenção do contrato de trabalho
Translation of Social Security Directive
Exceptional and temporary measures in response to the epidemic covid19
Extraordinary support for maintaining employment contracts
Employers who find themselves facing a business crisis, who have the situation regularised by the Social Security body and the Tax Authority, including those who are:
1a) Employers to which private law applies – companies, regardless of corporate structure (eg company Ownership, Limited and Limited Company), cooperatives, foundations, associations, federations and confederations – including those with the status of Private Social Solidarity Institution (IPSS);
b) Self-employed workers who are employers.
To access this support, three types of business crisis situations are considered:
1a) The total or partial closure of the company or establishment, resulting from the duty to close facilities and establishments, provided for in Decree No. 2-A/2020,of 20 March or by legislative or administrative determination, pursuant to Decree-Law no. 10-A / 2020, of 13 March, in its current wording, or under the Basic Law of Civil Protection, approved by Law 27/2006, of July 3, in its current wording, as well as the Basic Law of the Health, approved by Law no. 95/2019, of 4 September, regarding the establishment or company effectively closed and covering the workers directly affected;
b) The total or partial cessation of the activity of the company or establishment that results from the interruption of global supply chains, or the suspension of or cancellation of orders;
c) The abrupt and sharp drop in at least 40% of the billing, in the period of 30 days prior to the request from the competent security services with reference to the monthly average of the two months prior to that period, or compared to the same period of the previous year or, for those who have started the activity less than 12 months ago, at the average of that period.
It is extraordinary financial support attributed to the company, per worker, destined exclusively for to the payment of remuneration, during periods of the reduction of temporary working hours or suspension of employment contracts.
The employer is entitled to 70% social security support 2/3 of the gross normal remuneration of each worker covered, up to the limit of 1,333.5 euros per worker, to support the payment of wages.
If the employer chooses to reduce the normal working time, the compensation is attributed to the extent strictly necessary for, together with the remuneration work performed in or outside the company, ensure a minimum amount of 2/3 of the normal gross worker compensation, or the Minimum Remuneration Guaranteed Monthly (RMMG) corresponding to the normal working period, whichever is higher.
Whether there is a reduction in the normal working period or suspension of the contract, workers are entitled to receive a minimum amount equal to two thirds of their gross salary (without discounts), or the minimum wage corresponding to the normal period of work, whichever is higher.
1a) In situations of suspension of the employment contract:
The retributive compensation is equal to two thirds of the normal gross remuneration, or the minimum guaranteed monthly remuneration (RMMG), corresponding to the period of normal working hours, whichever is higher, and has a maximum limit triple the RMMG (1,905 euros).
Example: if a normal worker receives a salary of € 960.00, they are entitled to receive 2/3 of that salary, corresponding to € 640.00 ((€ 960.00:3 X 2).
b) In situations where the normal working period is reduced:
The worker covered by a reduction in the normal working period is entitled to be guaranteed the right to the respective salary, calculated in proportion to the hours of the employment.
However, if the employee’s salary is less than 2/3 of his /her salary normal gross income or less than RMMG corresponding to its normal period of work, whichever is higher, the worker has the right to a remunerative compensation equal to the difference between the salary earned and one of these values, as applicable.
Example: If 2/3 of a worker’s gross normal wage corresponded to
€ 640.00 ((€ 960.00: 3) x 2), and if in a situation of reduction of the normal period of work received a salary of 531.84 euros, the worker would be entitled to a compensation of 108.16 euros, until reaching the minimum limit of this support (1RMG)
The employer must submit an application on their own form accompanied by the following:
1a) Brief description of the business crisis situation;
b) Certificate of the certified accountant of the company attesting to the verification of the business crisis, by:
total or partial cessation of the activity of the company or establishment; or
abrupt and sharp drop in at least 40% of turnover;
c) Nominal list of the workers covered and the respective number of social security (NISS) in Excel file, made available online by Social Security.
The application must be submitted through Social Security Direct in the Profile menu, “Documents of Proof “option, with the subject “COVID19-Extraordinary support for maintenance of the employment contract”
You must register / change the IBAN with Social Security Direct, to make sure it is available at the end of March, so that Social Security can proceed with the payment of support to the employer, who will be responsible for paying the worker.
Yes. Cancellation of reservations is included in the definition of total or partial cessation of activity of the company or establishment that results from the interruption of supply chains, global supply, suspension, order cancellation or reservation.
No, they are alternatives. It is triggered when one of the situations occurs.
The 40% drop is measured by comparing billing over 30 days immediately prior to the request and:
The monthly average of the two months prior to that period, or;
The same period of the previous year, or;
For those who started the activity less than 12 months ago, the average of the period.
Example: if the order is delivered on March 31, billing between the day
March 1 and 30, 2020 and compare with the monthly average billing for the months of:
January and February 2020; or
March 1 to March 30, 2019.
The 30-day period is counted in calendar days and does not need to be fixed within full months. For an application submitted on March 27, the 30-day period occurs between the 26th of February and the 26th of March.
In these cases, the breakdown is measured by comparing the average billing value of 30 days immediately prior to the order date and the average billing amount since the date the activity started.
Example: if the order is placed on March 31, 2020 and the company is active since September 1, 2019, you should compare your billing average between the 1st September 2019 and March 30, 2020 and compare with the monthly average billing for the months in:
January and February 2020; or
The average billing value from September 1, 2019 to February 29,2020.
The certification is made in the application, on a specific form by the employer.
If it is:
1a) Total or partial closure of the company or establishment, resulting from the duty to close facilities and establishments, provided for in Decree No.2-A/2020, of 20 March, or by legislative or administrative action, the employer’s declaration with a summary description of the situation;
b) Total or partial cessation of the activity of the company or establishment that results from the interruption of global supply chains, the suspension or cancellation of orders, or abrupt and accentuated of at least 40% of billing, in the 30 days prior to the submission of the application.
In addition to the employer’s statement, a statement from the accountant is required and a company declaration, attesting to the interruption of supply chains supply, suspension or cancellation of orders and abrupt and sharp fall of 40% in billing.
Yes. The employer can choose to temporarily reduce normal periods of work or suspend employment contracts.
Yes, that is permitted.
Yes, extraordinary support for maintaining a work contract in a crisis situation can be combined with other national or international support measures, for example, employment or European Funds.
No, either during the periods in which you are receiving support or in the 60 days following this period, the employer cannot terminate employment contracts under the modalities of collective dismissal or dismissal due to the redundancy in relation to the worker covered by this support.
The law uses the concept of “normal gross remuneration” (article 305, paragraph 1, al. A), Code of Job).
The concept is more comprehensive than that of basic remuneration, and more comprehensive than that removed from article 262 (basic remuneration and seniority).
The concept of “normal restoration” involves base restoration, seniority and all other regular and periodic instalments inherent to the provision of work, which appear on the pay slip.
If you make collective redundancies or delete the worker’s employment covered by the support, the employer is obliged to repay or pay to the Institute Social Security, IP, and / or Institute for Employment and Professional Training, IP, depending on the case, the amount corresponding to the extraordinary financial support benefited.
Dismissal, except for reasons attributable to the worker’s actions;
Deliberate non-compliance with the remuneration obligations owed to workers;
Failure by the employer to comply with its legal, tax or other contributory obligations;
Distribution of profits during the term of the obligations arising from the concession incentive in any form, namely as a withdrawal by account;
Non-compliance, attributable to the employer, of the obligations assumed, within the deadlines
Provision of false statements;
Provision of work by the employer itself per worker, covered by the measure of extraordinary support for the maintenance of employment contract in suspension of the contract, or beyond the established schedule, in the temporary reduction of the normal working period.
Compensation is paid directly to the worker by the business employer. Social security, in turn, transfers the respective payment to the company.
During the application of the support, the employer is exempt from paying employer contributions to social security on the part of the employer, only the 11% employee contribution will be paid by the employee.
No, this support is intended exclusively for the payment of the employees.
Yes, in the same terms as for full-time workers.
Yes. Social Security and IEFP, IP services may also require the following accounting documents in particular:
Accounting balance sheet for the month of support as well as the respective similar month;
Declaration of Value Added Tax (VAT) referring to the month of support as well as the two immediately preceding months, or the declaration referring to the last quarter of 2019 and the first quarter of 2020, depending on whether the applicant is in the monthly or quarterly VAT regime respectively;
Documents demonstrating the cancellation of orders or reservations which result in a reduction in the use of production capacity or occupancy of the affected company or unit by more than 40% in the following month after the support.
Other additional supporting elements to be decided by order of the member of the government responsible for the area of labour and social security.
Yes. The bodies benefiting from the support can be inspected at any time, by competent public entities, and, at the time of inspection, can be asked to prove the facts on which the application and any respective renewals are based..
There is no specific form for this. However, communication to workers must transmit to them the conditions of this support and the beginning date of the lay off, which can be by sending a professional email from the company, as long as the worker has access to his electronic mailbox. This communication must be made after hearing the union delegates and / or workers’ requests, if any.
No.
This support has an initial duration of up to one month and can be extended monthly, up to a maximum of 3 months.
Yes. This support can be complemented with a training plan approved by the IEFP, IP where IEFP, IP additionally pays a scholarship equal to 30% of the value of the Social Support Index (132.6 euros), which is destined in equal parts for the worker (65.8 euros) and employer (65.8 euros).
Training is organized by IEFP, IP in conjunction with the company, and can be developed at a distance, when possible and conditions permit. This training is intended to ensure the maintenance of the respective jobs and the strengthening of skills of workers.
The employer must submit the application on the IEFP, IP website, together with a proof of support request sent to ISS, IP
No. The IEFP, I.P, will contact the employer directly to request the requirements necessary for the creation of a Training Plan organized by IEFP, IP.
No. The IEFP, I.P, will contact the employer directly to request the requirements necessary for the creation of a Training Plan organized by IEFP, IP.
It is an extraordinary support, destined to the workers covered, in the form of scholarship for part-time vocational training, through a training plan defined and organized by IEFP, IP in conjunction with the company, with a view to maintaining their respective jobs and strengthening the skills of their employee’s workers. This training plan is developed remotely, when possible and when conditions permit.
Companies affected by the outbreak of the COVID-19 virus that do not require “the support of the maintenance of an employment contract in a business crisis situation, with or without training ”(Lay off)”
Training must not exceed 50% of the normal working period during the period in which it takes place.
As long as the extraordinary contingency measures remain in force arising from the epidemiological situation due to the risk of contagion by COVID19, the training should be developed remotely, provided that the conditions are met are necessary and appropriate.
No. The amount is delivered to the employer, who must transfer it to the worker. The scholarship is fully supported by IEFP, IP
No. This support is intended exclusively for the payment of the training scholarship.
Each worker receives an amount proportional to the hours of training attended, up t to 50% of gross remuneration, with a maximum limit equal to the value of the guaranteed minimum monthly remuneration (ie 635 euros).
Yes. In equal terms to those applicable to full-time workers.
The support lasts for one month.
The employer informs the workers in writing of the decision to initiate a plan for training, indicating the expected duration (eg by posting a document in the workplace, in a visible place, and / or hand delivery to each worker or via email).
The employer must submit an application through the IEFP online portal, followed by:
1a) In situations oftotal or partial closure, the company or establishment, arising from the duty of closing facilities and establishments, provided for in in Decree no 2/A/2020 of 20 March, or by legislative or administrative determination, under the terms provided for in Law No. 10-A / 2020, of March 13, in its current wording, or under Law of the Civil Protection Bases, approved by Law No. 27/2006, of July 3, in the current wording, as well as the Basic Health Law, approved by Law
95/2019, of September 4, the employer must attach a declaration that attest to that fact;
b) In situations of i)total or partial cessationof the company’s activity or establishment resulting from the interruption of supply chains or suspension or cancellation of orders, or ii) breach of abrupt and sharp increase of at least 40% of billing , statement by the employer together with a certificate from the certified accountant of the company certifying the verification of these facts;
c) In any of the previous situations, the employer must also add nominative listing of the workers covered and the respective number of social security (NISS) in Excel file.
It is extraordinary financial support for the normalisation of the company’s activity, granted by IEFP, IP, when the activity is resumed.
The value corresponds to the guaranteed minimum monthly remuneration (635 euros) multiplied by the number of workers employed by the employer, paid at once.
Employers who have benefited from extraordinary support for maintaining employment contract or the extraordinary training plan, for having been in business crisis situation as defined in Decree-Law no. 10-G / 2020, of 26 March.
The employer sends a request to the IEFP, IP, through the iefp online portal, followed by:
1a) In situations oftotal or partial closure, the company or establishment, arising from the duty of closing facilities and establishments, provided for in Decree no. 2-A / 2020, of 20 March, or by legislative or administrative determination, under the terms provided for in Law No. 10-A / 2020, of March 13, in its current wording, or under the Law of Civil Protection Bases, approved by Law No. 27/2006, of July 3, in the current wording, as well as the Basic Health Law, approved by Law
95/2019, of September 4, the employer must attach a declaration that attest to that fact;
b) In situations of i)total or partial cessation of the company’s activity or establishment resulting from the interruption of supply chains or suspension or cancellation of orders,or ii) breach of abrupt and sharp increase of at least 40% of billing , statement by the employer together with a certificate from the certified accountant of the company certifying the verification of these facts;
c) In any of the previous situations, the employer must also add a named listing of the workers covered and the respective social security number (NISS number) in and Excel file.
Disclaimer: Please note that this an Informal translation for the purpose of information and guidance only, and that the original Portugal always supersedes.