Changes to the terms and conditions for access to the simplified lay-off

Legal Alert no. 121 - COVID-19 | Ordinance no. 76-B/2020, of 18th March

Amendments to Ordinance no. 71-A/2020, of 15th March, establishing and governing the terms and conditions for access to the simplified lay-off

The ordinance no. 76-B/2020, of March 18th, amends and clarifies some provisions regarding the safeguarding of employees’ rights and duties under the access requirements to the simplified lay-off, namely:

1. It is now considered a business crisis the sharp and abrupt drop of at least 40% of the company’s turnover within the 60 days prior to the request to the Social Security with reference to the same period (i.e. the reference to the same period of three months is no longer required).

2. The aid may, exceptionally, be extended monthly, up to a maximum of 6 months (i.e. it is no longer required that (i) the company's employees have enjoyed the maximum annual vacation limit; and (ii) the employer has adopted the working hour’s flexibility schemes provided by law).

3. Paragraph 5 of Article 5 of the Ordinance no. 76-A/2020, which stated that the employer benefiting from the measure could instruct the employee to temporarily perform functions not included in the employment contract, is repealed.

The Ordinance no. 76-B/2020 enters into force on March 19th, 2020.

Did you find this useful?