What is "Lay-off" and how to order?

What is "Lay-off" and how to order?

 


 

The "Lay-off" means the temporary reduction of working periods or suspension of the employment contracts. This is carried out at the initiative of the companies. Due to Market, Technological or Structural reasons or even in the Pandemic or the other events that seriously affect the Company´s activity.

 

In other words, "Lay-off" ensures the economic status of a company and maintains the jobs of the Worker at the same time. This is the reason when "Lay-off" is regularized, the Employer can´t terminate the contract of the Worker covered by the "Lay-off" regime. In the case of the Service Commission, Fixed-Termed Contract can be terminated which is not covered by the "Lay-off" regime.

 

We need to pay attention to one thing that Companies can only benefit from the "Lay-off" regime if the company has not any debts in the Tax and Customs Authority and Social Security. In other words, the Contributory Status should be regularized in order to apply "Lay-off".

 

How to Access the “Lay-off Regime”?

 

In order to start the process of "Lay-off", the employer must follow a set of procedures.

 

Inform the Workers

 

Before the employer starts suspending the employment contract or reducing the working period, the employer must inform the Workers or the organization that represents them collectively in writing. The information must include various things such as Economic or Financial measures, Staff and corresponding Criteria, Number & Categories of Workers, Term of Application of the Measure, Training Zone to be attended by Workers if applicable.

 

Negotiation of Suspension or Reduction

 

The Company and the Employees must determine the suspension of the Employment Contract or the reduction in the normal period of time. At this phase, the duration of measures must be applied.

 

Opinions & Suggestion

 

The preparation of minutes can be concluded with the help of the opinions and suggestions of the Employees and Company itself.

 

Conclusion

 

To apply an obvious layoff modality, the start date and the end date of the measure along with the respective fundamentals should be concluded.

 

Social Security

 

The company has to send the information to Social Security such as Name of the Worker, Address, Date of Birth, Date of Admission to the Company, Situation before Social Security, Category & Profession, Retribution, Reduction in the Number of Hours, Start & End of the reduction or the suspension of the employment contract.

 

What is a Simplified Lay-off Regime?

 

The Portuguese government has simplified the regime of "Lay-off" to the outbreak of Covid-19.

In order to take advantage of this regime, they must comply with one of the following requirements.

 

If there is a 40% drop in billing (30 days prior to order) compared to the average of the sales of the 60 days preceding them or with the sales of the same period of the previous year.

 

If the activity is totally or partially stopped it results in the Interruption, Cancellation, or Suspension of the services and orders.

 

If the Company has to be closed due to the Health Authorities or the State of Emergency.



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(Author)

Raj Don

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