Portugal: government presents new system for layoff compensation to the social partners

Proposal.  The government has polished its proposal on layoff benefits (see our dispatch No.  100896).  Currently, employees subject to the mass layoff system or whose position is cancelled can claim one month’s pay per year worked in the company.  The government proposes removing ten days’ pay and limiting the benefits to 12 months’ pay.  The current minimum guarantee of three months’ pay would be removed.  Benefits will amount to 1.66 days per month of work, as opposed to 3 currently for fixed-term contracts of six months.