Portugal: government prepares a further extension of the simplified short-time working scheme alongside a new economic recovery scheme

The editorial team is offering you free access to this article
Start your free 1-month trial to access all our content

During the week of 27 July, Portugal’s Council of Ministers is expected to approve measures from the Economic and Social Stabilisation Programme (PEES), which will entail the introduction of new support schemes, as well as the extension of the current simplified short-time working scheme (c.f. article No. 11985) from its scheduled expiry at the end of July, so that it runs until the end of 2020 and continues to support Portugal’s hardest hit businesses. According to the Portuguese press, several models will likely operate contemporaneously, including the simplified short-time working scheme for businesses that are forced to remain closed, a new scheme (the details of which are not yet known) for firms still seriously affected by the crisis, and a recovery support measure that is set to take effect in August. The scheme envisaged to provide recovery support (which has been revised compared with that presented in April, c.f. article No. 11985) would allow businesses to tie reductions in working time to changes in invoices and orders numbers (the relevant proportions have not yet communicated), so that for between a 40% and 60% reduction in orders, workers will receive, starting in August, at least 83% of their salary level for the time not worked (30% of which is to be paid by the employer, and without social security contributions). For orders reductions exceeding 60%, workers will receive at least 77% (and again 30% of which is to be paid by the employer, and without social security contributions). From October onwards, the percentages rise to 88% and 92% respectively. This scheme was discussed with the social partners in a meeting on 21 July. In addition to these measures, the PEES will provide for an increase in ‘support for vocational training’, and particularly for firms that place their employees on short-time working.

Do you have information to share with us?
What you absolutely must read this week
The essential content of the week selected by the editorial team.
See all
France: sectors feel economic slowdown to differing degrees
The latest data on France’s occupational sectors (branches professionnelles), covering the year 2023, show how employment trends are shaping workplace dynamics. After a more favourable period for...
United Kingdom: Parliament finally passes Employment Rights Bill
The UK Labour government's flagship reform of employment rights was passed by both houses on 16 December after a turbulent parliamentary process. The bill introduces numerous changes to labour...
18 December 2025
EU: social partners in telecoms sign joint statement on AI
On 16 December, the social partners in Europe's telecommunications sector unveiled a joint statement on artificial intelligence. They propose an action plan for skills and commit to raising...
18 December 2025
EU: MEPs demand directive on algorithmic management
Members of the European Parliament have called for a directive on algorithmic management. Such legislation would introduce obligations for companies to inform employees, assess health and safety...
17 December 2025
Most viewed articles of the month on mind HR
What readers clicked on the most last month.
What readers clicked on the most last month.
1
EU: Commission launches consultation with social partners on quality jobs
On 4 December, the European Commission launched the first phase of consultation with social partners with a view to a European directive on jobs, which is scheduled for the end of 2026. It could...
4 December 2025
2
EDF bans alcohol on all its sites
From 1 January 2026, French energy giant EDF (180,000 employees) will prohibit alcohol consumption at all internal and external corporate events, from social gatherings to seminars. The policy...
26 November 2025
3
United Kingdom: government scraps plan to introduce ‘day one’ protection against unfair dismissal
The UK government announced on 27 November, in a statement, that it would not be introducing the right to challenge unfair dismissal (without cause) from the first day of employment in its...
3 December 2025
4
Poland: bill adopted to amend definition of psychological harassment
On 27 November, the Polish cabinet adopted a draft amendment to the labour code aimed at simplifying the definition of psychological harassment at work, or “mobbing” (Article 94 3)...
4 December 2025
5
EU: MEPs demand directive on algorithmic management
Members of the European Parliament have called for a directive on algorithmic management. Such legislation would introduce obligations for companies to inform employees, assess health and safety...
17 December 2025
6
Austria: European rules on wage transparency expected to cause a cultural shock
With the gender pay gap in Austria being the second largest in the European Union (18.3%), the Austrian government has promised to introduce a bill next spring to transpose the European directive...
27 November 2025