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.
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