The November 3, 2006 government decree 220/2206 reformed the unemployment insurance system and especially includes a disposition which will make it harder, in practice, for companies to part with their employees in case there is a reorganization. (Ref. 070128)
Before this new reform on the unemployment insurance system, the unemployment insurance benefit (a financial benefit at the Social Security’s expense) comprised some cases of “suppression of the work contract by mutual agreement” (la revogação por mutuo acordo) within the notion of “unintentional unemployment” on which the right to the financial benefit is based. The suppression of the work contract by agreement could take place within the frame of a workforce decrease, during a reorganization
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