Covid-19: Companies can maintain support for recovery as long as there are restrictions on activity

At issue is the Government's decree-law that comes into force this Saturday, August 14th

Companies with billing losses equal to or greater than 25% may continue to access support for the recovery until the end of the month in which restrictions on activity associated with the pandemic are in force, establishes a diploma published today.

At issue is the Government's decree-law that enters into force this Saturday, August 14, and which extends the extraordinary support for the progressive recovery, a measure created more than a year ago and whose end was scheduled for September.

"Regardless of the date of submission of the request for support (...), the employer can only benefit from this support until the end of the month in which, by legislative or administrative determination of a governmental source, measures restricting economic activities are in force", defines the decree- law.

Among the restrictions are «rules on matters of opening hours, occupancy or capacity of establishments or events, as well as limitations on the movement of people in the territory, or restrictions on the access of tourists from the main tourist source markets, within the scope of pandemic”, can be read in the diploma.

The decree-law also establishes that the employer covered by the takeover support “has the duty to maintain its activity in all establishments” except in cases where the closure is imposed by the Government, within the scope of the pandemic.

Support for the recovery allows companies in difficulties due to the pandemic to reduce the hours of their workers and, as the Government had already announced, the diploma maintains the possibility for companies with turnover losses equal to or greater than 75% to continue to reduce the normal working period up to 100%.

"This reduction of 100% is available to all workers if companies fall into the sectors of bars, clubs, recreational parks and supply or assembly of events", he explains.

For companies in other sectors of activity, the reduction of the normal working period continues to be limited to 75% of workers, and companies must keep the establishments open.

Companies that access the support are prevented from proceeding with dismissals within 90 days after the termination of the support (against the previous 60 days).

The decree-law extending support for the recovery was approved by the Council of Ministers on 29 July and promulgated last Thursday by the President of the Republic, Marcelo Rebelo de Sousa.



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