The Portuguese Council of Ministers approved the introduction of two special layoff funds. These guarantee funds paid for by businesses will ensure the payment of benefits even in case of financial difficulties. Setting these funds up was the counterpart for the new cut to workers’ layoff benefits, from 20 days per year spent in the company today down to 12. The National Assembly will debate and vote these two issues. The government is thinking about speeding up the approval and enforcement of this Act. (Ref. 130312)
1%. The Portuguese Council of Ministers approved the creation of two funds guaranteeing layoff pay. The Labor Compensation Fund (FCT) is a capitalization fund that will ensure the payment of 50% of the benefits workers are entitled to when they get laid off. The FCT is activated by the employer who contributes up to 0.925% of each worker’s gross income. The bill provides for the creation of the “Equivalent Mechanism” (ME), which may take the form of insurance and will pursue the same goal –
…Do you have information to share with us?