Legal alert no. 106

Legal Alert no. 106 – Decree no. 323/2019 which creates the CONVERTE+ measure

Applications for financial supports under Decree no. 323/2019, published in the Portuguese Official Gazette on 18^th September, have already been launched. The mentioned Decree came into force to regulate the creation of the CONVERTE+ measure, which consists in a transitional support for the conversion of fixed-term employment contracts into permanent employment contracts by providing financial support to the employer.

Applications for this support may be presented either before or after the conversion. The conversions are eligible since September 21^st, if the term contracts have been concluded up to and including 19 September.

The measure consists in a financial support equivalent to four times the monthly basic remuneration provided for in the permanent contract up to a limit of 3,050.32 euros, which may be increased by 10% in the following cases:

a) Conversion of fixed-term employment contract with employees that meet at least one of several criteria, such as: (i) Disabled person; (ii) Person who is part of a single-parent family; (iii) Person whose spouse or unmarried partner is unemployed registered with IEFP, IP; or (iv) Victim of domestic violence.

b) Conversion of fixed-term employment contract relating to a job located in an economically disadvantaged territory.

Financial support may also be increased by 30% under the Gender Equality Promotion in the Labour Market measure, in case of conversion of a fixed-term employment contract with an under-represented sex employee in a particular profession (profession where there is not a representability of 33.3% in relation to one gender).

The measure is applicable to any natural or legal person governed by private law who meets a number of requirements, such as having tax and social security contributory situation regularized, not having arrears in salary payments or not being convicted in criminal or administrative proceedings for violation of legislation in the last three years.

To access the full version of the Decree no. 323/2019, dated from September 18^th, please click here.