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‘Lay Off’ To Continue and Evolve Into A New Model

The Prime Minister of Portugal (PM), António Costa, has confirmed that the ‘lay-off’ regime, within the scope of the new economic and social stabilisation program, will evolve into a mechanism that allows companies to maintain their employees without penalising workers’ incomes.

Speaking at a press conference, António Costa said that the economic and social stabilisation programme will be approved next week by the Council of Ministers, and one of the four pillars that comprise this programme is that of maintaining jobs. “The simplified ‘lay-off’ is a measure that has so far preserved more than 800 thousand jobs. It is a measure that will start to evolve from June of this year to ensure that companies take steps to re start their business activities rather than continue to rely on state aid. However, he stressed that this new ‘lay-off’ model should not be an instrument that penalises workers’ income. He went on to say that “We have to evolve procedures so that the workplace is protected while companies initiate steps to resume their business activities in their chosen sector.”

The Prime Minister said he had received proposals for the revision of the lay-off regime by social partners and parties, concluding that, among all of them, “there are no fundamental incompatibilities” and that it will be possible for the Government to “design” a new mechanism that meets the employment objectives.

Samantha Gannon

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