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.
Congratulations!
For more information, please contact us.
(Author)
Raj Don
Thank you Sir.
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