In response to the Covid-19 situation, and following consultations with the social partners, Portugal’s government will proceed to relax the rules surrounding short-time working. The changes initially concern the final quarter of 2020 however an extension into 2021 is already envisaged. Under the new system companies affected by a fall of at least 75% in turnover will be allowed to fully suspend their activity instead of a 60% reduction currently. In addition, companies will be eligible to access the new system as soon as they suffer a 25% fall in turnover.
Relaxation of the Aid for Progressive Recovery provision. The government’s plan to help companies resume normal business activity has also been relaxed. The government and the social partners have agreed to ease access to the so-called simplified short-time working scheme that was set up as a result of the Covid-19 pandemic (c.f. article No.11985 for the latest reform of the system). While the initial plan provided for a 60% reduction in working hours, companies that lose at least 75% their tur
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