Decree-Law no. 98/2020 - Amendments to legislation concerning the extraordinary support for progressive recovery of activity in companies

Legal Alert no. 134

Decree-Law no. 98/2020, published on November 18, 2020, implemented an exceptional and temporary amendment of the rules regarding the sequentially of supports for the maintenance of employment.

Thus, the employer who, by October 31, 2020, has requested the extraordinary incentive for the normalization of business activity may, exceptionally, up to December 31, 2020, withdraw from this support and request the extraordinary support for progressive recovery of activity in companies in a business crisis situation, with a temporary reduction in the normal working period, without the reimbursing of the amounts already received.

On the other hand, an employer who has requested the reduction or suspension measures provided for in articles 298 et seq. of the Labour Code (“normal” lay-off) and who intends to have access to extraordinary support for progressive recovery of activity, shall not be subject to the time limit for requesting to reduction or suspension measures, foreseen in article 298-A of the Labour Code.

This Decree-Law entered into force on November 19, 2020.

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