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PEES – Employment support

In 2020, still in an embryonic phase of the pandemic, the creation of support for the maintenanceof employment contracts (“simplified lay-off”, v1) was fundamental to respond to a period of economic downturn.

In June, the EP – Economic and Social Stabilisation Plan emerged, which presented a set of instruments to support the maintenance of jobs in the context of the resumption of economic activity, in particular by establishing the creation of extraordinary support for progressive recovery. An extraordinary incentive measure for the standardisation of business activity was also created in the form of financial support for entities that have used the “lay-off” or the “extraordinary training plan”, and to resume activity and undertake not to lay off workers and maintain the level of employment in certain circumstances, among others.

During the second half of the year we saw a series of adjustments to the measures, such as the creation of a new 25% level of invoicing shortfall or the possibility of reducing the normal working period according to the next billing step during December.

In January 2021, with the return to confinement as demanding as the one we lived in between March and April last year, theDecree-Law No. 6-C/2021 of January 15 to introduce a new calibration of existing measures and strengthen support to employers and workers, although it mainly focus on the measure of extraordinary incentive to normalize business activity where the changes are more significant.

We systematise in a document the main changes as well as some relevant recall notes for a better understanding and scope. See here:
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