Decree-Law no. 90/2020, implemented the first amendment to the decree-law that has created the extraordinary support for progressive recovery of activity in companies in a business crisis situation.

Legal Alert no. 130

Decree-Law no. 90/2020, published on October 19, 2020, implemented the first amendment to the decree-law that has created the extraordinary support for progressive recovery of activity in companies in a business crisis situation, with a temporary reduction in the normal working period.

A business crisis situation is considered when there is a drop of 25% or more of invoicing:
- Within the month prior to the application of the initial request immediately preceding the calendar month to which the initial application for support or extension refers, with reference to the calendar month of the same year or with the monthly average of the two months preceding that period; or
- For those companies who have initiated their activity within less than 12 months ago, with reference to the average monthly invoicing between the begin of their activity and the penultimate complete month preceding the calendar month to which the initial application for support or extension refers.

Reduction of the Normal Working Period (PNT)

In the case of an employer with the equal or a higher drop of invoicing:

a) To 25 %, the reduction of the PNT, per employee, should be a maximum of 33 % in the months of October, November and December 2020.
b) To 40 %, the reduction of the PNT, per employee, should be a maximum of:
i) 50 % in August and September 2020; and
ii) 40% in October, November and December 2020.
c) To 60 %, the reduction of the PNT, per employee, should be a maximum of:
i) 70 % in August and September 2020; and
ii) 60 % in October, November and December 2020.
d) To 75 %, the reduction of the PNT, per employee, should be up to 100 % in October, November and December 2020.
In situations where the reduction of the PNT is greater than 60%, in accordance with paragraph d), the amount of retributive compensation is increased to the extent strictly necessary to ensure that the remuneration for hours performed and hours not performed, to be paid to the employee, results in a monthly amount equivalent to 88% of his gross normal remuneration, up to a limit of 1.905,00 €.

For the situations also framed in paragraph d), during the reduction of the PNT, the employer is entitled to a financial support corresponding to 100 % of the remuneration, being supported by the social security.

Professional training

The extraordinary support can be accumulated with a professional training plan approved by the Institute for Employment and Professional Training or the Operational Programme for Competitiveness and Internationalization.
The training plan entitles the right to a grant of 307,17 € per employee covered.

This Decree-Law entered into force on October 20, 2020.

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