LABOR LAW DEPARTMENT - PORTUGAL
COVID-19 – Extension of simplified lay-off in Portugal and new support measures for business activity and employment protection
Following the Economic and Social Stabilization Programme, approved by the Portuguese Government in the beginning of June, Decree-Law no. 27-B/2020 of 19 June sets forth new rules for the employment sector, particularly, the extension of the extraordinary support for maintaining employment contracts in a business crisis situation – set forth by Decree-Law no. 10-G/2020 of 26 March (“simplified lay-off”) – and the creation of other employment support measures: the stabilisation subsidy and the extraordinary incentive for the normalisation of business.