Who can access this extraordinary support for maintaining employment contracts in a business crisis?

Employers in situations of business crisis that have their situation regularized before the Social Security and the Tax Authority, which:

• Employing entities to which private law applies - commercial companies, regardless of corporate form (eg Unipessoal, Limited and Limited Company), cooperatives, foundations, associations, federations and confederations - including those with the status of Private Institution Social Solidarity (IPSS);
• Self-employed workers who are employers.

What is considered a business crisis situation?

To access this support, three types of business crisis situations are considered:

• The total or partial closure of the company or establishment, due to the duty to close 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 Decree- Law no. 10-A / 2020, of 13 March, in its current wording, or under the Basic Law of Civil Protection, approved by Law no. 27/2006, of 3 July, in its current wording , as well as the Basic Law on Health, approved by Law no. 95/2019, of 4 September, in relation to the establishment or company effectively closed and covering workers directly affected;
• The total or partial stoppage of the activity of the company or establishment that results from the interruption of global supply chains, or the suspension or cancellation of orders;

• The abrupt and sharp drop of at least 40% of the billing, in the period of 30 days prior to the request with the competent social security services, with reference to the monthly average of the two months prior to that period, or compared to the same period the previous year or, for those who started the activity less than 12 months ago, at the average of that period.

What is the extraordinary support for the maintenance of employment contracts in a situation of business crisis?

It is an extraordinary financial support attributed to the company, per worker, destined exclusively to the payment of remuneration, during periods of temporary reduction of working hours or suspension of employment contracts.

Are the managers and administrators of the companies covered by this lay-off regime?

No. This mechanism applies only to employees, under the terms of the Labor Code

What is the value of support?

The employer is entitled to social security support in the amount of 70% of 2/3 of the normal gross wage of each worker covered, up to a limit of 1,333.5 euros per worker, to support the payment of wages.
If the employer chooses to reduce the normal period of work, compensation is granted to the extent strictly necessary to, in conjunction with the remuneration for work performed in or outside the company, ensure a minimum amount of 2/3 of the employee's gross normal remuneration , or the value of the Guaranteed Minimum Monthly Remuneration (RMMG) corresponding to your normal period of work, whichever is higher.

How much does the worker receive?

Whether there is a reduction in the normal working time or suspension of the contract, workers are entitled to receive a minimum amount equal to two-thirds of their gross salary (without discounts). This retributive compensation cannot be less than one RMMG (€ 635.00) or more than three RMMG (€ 1,905.00).

Example:

Normal remuneration of the workerRemuneration due to the worker (1)Social Security Support (2)Employer's pay (3)

€ 635.0€ 635.00€ 444.50€ 190.50

€ 650.0€ 635.00€ 444.50€ 190.50

€ 750.0€ 635.00€ 444.50€ 190.50

€ 850.0€ 635.00€ 444.50€ 190.50

€ 1,000.00€ 666.67€ 466.67€ 200.00

€ 1,500.00€ 1,000.00€ 700.00€ 300.00

€ 2,000.00€ 1,333.33€ 933.33€ 400.00

€ 2,500.00€ 1,666.67€ 1,166.67€ 500.00

€ 3,000.00€ 1,905.00€ 1,333.50€ 571.50

€ 5,000.00€ 1,905.00€ 1,333.50€ 571.50

(1) 2/3 of the employee's gross normal remuneration (minimum: 635.00 euros; maximum: 1,905.00 euros)

(2) 70% of 2/3 of the gross normal pay due to the employee, up to a limit of 1,333.5 euros

(3) 30% of 2/3 of the gross normal pay due to the employee, up to a limit of 1,333.5 euros

How do you calculate the amount of compensation?

• In situations of suspension of the employment contract:

The remuneration compensation is equal to two thirds of the normal gross remuneration, with the minimum guaranteed minimum monthly remuneration (RMMG) or the amount of remuneration corresponding to your normal working period if less than the RMMG and the maximum limit triple the RMMG.

Example: if a worker in a normal situation receives a salary of € 960.00, he is entitled to receive 2/3 of that salary, corresponding to € 640.00 ((€ 960.00: 3 X 2).

• In situations where the normal working period is reduced:

The worker covered by a reduction in the normal working period is guaranteed the right to the respective salary, calculated in proportion to the hours worked.
However, if the wage earned by the worker is less than 2/3 of his normal gross wage or less than RMMG, the worker is entitled to compensation pay equal to the difference between the wage earned and one of these amounts, as applicable.

Example: If 2/3 of a worker's gross normal salary corresponds to € 640.00 ((€ 960.00: 3) x 2), and if in a situation where the normal working period is reduced, he receives a salary of 531.84 euros, the worker would be entitled to compensation of 108.16 euros, up to the minimum limit of this support (1RMG)

• How is this support required?

The employer must submit an application in its own model accompanied only by the following:

• Brief description of the business crisis situation;
• Certificate of the certified accountant of the company attesting the verification of the business crisis situation, by:
  • total or partial stop of the activity of the company or establishment; or
  • abrupt and sharp drop in at least 40% of turnover;
• Nominal listing of the workers covered and the respective social security number (NISS) in an Excel file, made available online by Social Security.

The application must be submitted through Social Security Direct in the Profile menu, option Evidence Documents, with the subject COVID19-Extraordinary support for maintaining the employment contract.
You must register / change the IBAN with Social Security Direct, in a feature to be made 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.

• Does the cancellation of reservations in the hotel sector or other similar establishments open to the public constitute a business crisis?

Yes. The cancellation of reservations is included in the concept of total or partial stoppage of the activity of the company or establishment that results from the interruption of global supply chains, suspension, cancellation of orders or reservations.

• Are business crisis situations cumulative?

No, they are alternatives. It is enough that one of the situations occurs.

• Do companies have to have their tax and contributory situation regularized?

The companies must have their tax and contributory situation regularized, and the debts incurred in the month of March are not included for this purpose.

How is the 40% drop in revenue measured to justify the conditions for access to support?

The 40% drop is measured by comparing the billing in the 30 days immediately preceding the order and:

• The monthly average of the two months prior to that period, or;
• The same period in the previous year, or;
• for those who started the activity less than 12 months ago, the average of that period.

Example: if the order is delivered on March 31, it is important to calculate the billing between March 1 and March 30, 2020 and compare it with the monthly average billing for the months of:

• January and February 2020; or
• March 1 to March 30, 2019.

How are the 30 days counted?

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 runs from February 26 to March 26.

How is the breakdown calculated in a company that is less than 12 months old?

In these cases, the break is measured by comparing the average billing amount of the 30 days immediately preceding 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 has been in business since September 1, 2019, you should compare the average billing between March 1 and March 30, 2020 and compare with the monthly average billing for the months of:

• January and February 2020; or
• The average billing amount from September 1, 2019 to February 29, 2020.

Who certifies support eligibility situations?

Certification is made on application.

• Total or partial closure of the company or establishment, due to the duty to close facilities and establishments, provided for in  Decree No. 2-A / 2020, of 20 March , or by legislative or administrative determination, the declaration of the employer with summary description of the situation;
• Total or partial stoppage of the activity of the company or establishment that results from the interruption of global supply chains, the suspension or cancellation of orders, or an abrupt and sharp break in at least 40% of the invoicing, in the 30 days prior to the presentation of the request, in addition to the employer's declaration, a statement from the company's certified accountant is required, attesting to the interruption of supply chains, suspension or cancellation of orders or the abrupt and sharp 40% drop in invoicing. »

Can an employer who requires extraordinary support for maintaining jobs temporarily reduce normal working hours or suspend employment contracts?

Yes. The employer can choose to temporarily reduce normal working hours or suspend employment contracts.

• Can the same company have workers in the same establishment with reduced working hours and others with suspension of the employment contract?

Yes.

Can the same company benefit simultaneously from other public support?

Yes.  Extraordinary support for maintaining employment contracts in a business crisis situation can be combined with other national or international support, for example, employment or European Funds.

Can the employer fire workers?

No, either during the periods in which you are receiving support or in the following 60 days, the employer cannot terminate employment contracts under the terms of collective dismissal or dismissal due to the extinction of the job.

• What are the remuneration installments that go into the calculation of the remuneration compensation?

The law uses the concept of “normal gross remuneration” (article 305, no. 1, al. A), Labor Code).
The concept is more comprehensive than that of basic remuneration, and more comprehensive than that taken from Article 262 (basic remuneration and seniority).
The concept of “normal remuneration” involves the basic remuneration, seniority payments and all other regular and periodic installments inherent to the provision of work, which appear on the payroll.

• What happens if the employer receiving financial support dismisses you during that period or the next 60 days?

If you make collective redundancies or for extinguishing the job, the employer is obliged to refund or pay to the Social Security Institute, IP, and / or Employment and Professional Training Institute, IP, as the case may be, the amount corresponding to the extraordinary financial support from which it has benefited.

• What is not allowed for the employer while receiving financial support?
  • Dismissal, except for reasons attributable to the worker;
  • Punctual non-compliance with the remuneration obligations owed to workers;
  • Failure by the employer to comply with its legal, tax or contributory obligations;
  • Profit distribution during the term of the obligations arising from the granting of the incentive, in any form, namely by way of withdrawal on account;
  • Non-compliance, attributable to the employer, of the obligations assumed, within the established deadlines;
  • Provision of false statements;
  • Provision of work to the employer itself per worker covered by the extraordinary support measure for the maintenance of the employment contract in the form of suspension of the contract, or beyond the established schedule, in the form of temporary reduction of the normal period of work.

Compensation compensation is paid directly to the worker by the employer. Social security, in turn, transfers the respective contribution to the company.

Are these amounts subject to Social Security contributions?

During the application of the support, the employer is exempt from paying social security contributions on the part of the employer, maintaining the 11% contribution for the employee.

Can the employer use support to pay for expenses other than pay, such as water or electricity bills?

No. This support is intended exclusively for the payment of the fee.

Is the part-time worker also entitled?

Yes, in the same terms as for full-time workers.

Can more documentary evidence be required?

Yes. The Social Security and IEFP, IP services may also request, in particular, the following accounting documents:

• Accounting balance sheet referring to the month of support as well as the corresponding same month;
• Value Added Tax (VAT) declaration 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, as the applicant is in the monthly or quarterly VAT regime respectively;
•  Documents demonstrating the cancellation of orders or reservations resulting in a reduction in the use of production capacity or occupation of the company or the affected unit by more than 40% in the month following the support period.
• Other additional supporting elements to be fixed by order of the member of the government responsible for the area of ​​labor and social security.

Can the beneficiary entities be inspected?

Yes. The entities benefiting from the support can be inspected at any time by the competent public entities, and must, at the time of the inspection, prove the facts on which the request is based and the respective renewals.

How is this decision communicated to workers?

There is no draft form. However, the communication to the workers must transmit to them the adhesion to these supports and the beginning of the lay off , which can be done 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 union representatives and / or workers' committees, when they exist.

Is there a minimum and a maximum number of workers employed by the employer to use this support?

Do not.

How long does this support last, with or without training?

This support has an initial duration of up to one month, and can be extended monthly, up to a maximum of 3 months.

Can this support be combined with a training plan?

Yes. This support can be complemented with a training plan approved by IEFP, IP in which IEFP, IP additionally pays a scholarship equal to 30% of the value of the Social Support Index (132.6 euros), which is intended in parts equal for the worker (65.8 euros) and employer (65.8 euros).

Who is responsible for the training?

The training is organized by the IEFP, IP in conjunction with the company, and can be developed remotely, when possible and conditions permit. This training is intended to ensure the maintenance of the respective jobs and the strengthening of the skills of workers.

Where is this support required?

The employer must submit the request on the IEFP, IP website together with proof of support request sent to ISS, IP

 

EXTRAORDINARY FINANCIAL INCENTIVE TO SUPPORT THE STANDARDIZATION OF THE COMPANY'S ACTIVITY

What is?

It is an extraordinary financial support for the normalization of the company's activity, to be granted by the IEFP, IP, when the activity resumes.

How much will the employer receive?

The amount corresponds to the guaranteed minimum monthly remuneration (635 euros) multiplied by the number of workers covered by those supports, paid in one go.

Who can access it?

Employers who have benefited from extraordinary support for maintaining an employment contract or from an extraordinary training plan, for having been in a business crisis situation under the terms defined in Decree-Law no. 10-G / 2020, of 26 March.

How is this support required?

The employer must submit the request on the IEFP, IP website together with proof of support request sent to ISS, IP