Portugal: simplified short time work scheme extended to end of July, with new arrangements to follow

Yesterday, on 4 June, the Portuguese government approved an economic and social stability plan that targets an economic recovery in the country. The plan provides support to the country’s production sector and extends the short time work scheme that has been in force since the start of the Covid-19 pandemic – dubbed a ‘simplified’ scheme because it does away with procedures laid down in the labour code – until the end of July. A new partial unemployment scheme will then be introduced from 1 August. In addition, companies will benefit from support to resume activity, as the country seeks to exit the crisis.