Amendments to the extraordinary support for the gradual recovery of companies in a business crisis situation

Legal alert no. 159

On August 13^th, 2021, it was published in “Diário da República” the Decree-Law no. 71-A/2021, which extends the extraordinary support for the progressive recovery of the activity of companies in a business crisis situation, with a temporary reduction of the normal working period (hereinafter, NWP), established by Decree-Law no. 46-A/2020, dated from 30 July, and settles the following main amendments:

I - Extraordinary support for the recovery of the activity with a temporary reduction of the NWP

The employer can only benefit from this support until the end of the month in which measures restricting economic activities are in force, such as rules regarding opening hours, occupation or capacity of establishments or events, as well as limitations to the circulation of people in the territory, or conditioning of the access of tourists from the main tourist source markets.

II - Maximum reduction limits of NWP

In the case of an employer with a turnover drop equal to or greater than 75%, the reduction of the NWP, per employee, may be a maximum:

• Up to 100 % up to the limit of 75 % of the working employees, per establishment; or up to 75 % up to the totality of the working employees, per establishment;
  
•  Up to 100 % for employers in the sectors of bars, discos, recreational parks and the supply or staging of events. The relevant companies shall be identified by ordinance.

During the period of reduction of the NWP, as well as during the following 90 days, the employer may not:

• Terminate employment contracts under the modalities of collective dismissal, dismissal by termination of employment or dismissal for unsuitability, nor initiate the respective procedures;
  
• Distribute dividends, in any form, namely as a withdrawal from account.

The Decree-Law no. 71-A/2021, of August 13^th enters into force on the day following its publication.

The measures relating to the NWP maximum reduction limits and employer duties, herein referred, only take effect from October 1^st, 2021.

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