[ad_1]
The simplified layoff regime, adopted during the first phase of the pandemic, will return to the tourism sector and all the others that have not recovered. “We will review the support regime for progressive recovery, which will be more flexible for companies in sectors with significant losses,” announced Pedro Siza Vieira, Minister of Economy, during the Portugal Tourism Summit, which took place this Monday in Lisbon under the topic “Post-Covid Tourism”.
The minister recalled that “the simplified layoff measure was a green way” for companies to secure jobs in an early and tough stage of the coronavirus outbreak, “when we were dealing with tens of thousands of workers,” and acknowledged that there were sectors in which the support regime for the progressive recovery that followed was not as applicable, as was the case of tourism.
“When we created the redundancy regime, we thought that there would be a more intense recovery in the summer, which did not happen and we are ready to help companies,” said the Minister of Economy, highlighting that “this uncertain context has been particularly punishing for tourism ”and that the Government is“ in solidarity in these difficult times with a sector that has helped the economy so much ”.
“What we need is to endure, we have months ahead of low demand. In May, June and July we anticipated a less adverse context, but the government is aware of the context we are going through,” he stressed.
According to Siza Vieira, “this means that we have to put up with jobs and companies.” In addition to the simplified dismissal, there will be an extension of the banking moratoriums until September 2021 in the case of tourism, culture or other sectors most affected.
“We added 12 months to the capital repayment terms, which is an additional break in the treasury effort that these companies will have to face,” said the minister, noting that the Single Social Rate (TSU) exemption regime will be maintained. .
“The Government is aware that the regime planned until the end of the year will have to be extended during the next,” stressed Siza Vieira, also adding that a measure that allows the inclusion of next year’s income in the State Budget proposal. Tourism, catering or transport VAT is channeled to the purchase of other services.
“As of October 5, we will have an agreement with the accommodation, transport or culture sector, in which there will be public participation in the discounts that these companies offer to customers, which is a way to stimulate domestic demand” Siza emphasized. Vieira, also announcing a support line for the organization of events and shows.
“We know that it will be difficult times, but there is a repressed demand waiting to be able to travel to Portugal again, and at this stage we also have to think about structural investments, such as the Lisbon airport,” the Minister of Economy stressed.
Simplified layoff responds to complaints from business owners
Since August, companies that have not been able to fully return to business or that continue to experience annual revenue breaks of at least 40% can turn to Progressive Resume Support, the successor mechanism to simplified redundancy that provides employers with modulated Support due to interruption in billing. Under this mechanism, companies can, in a variable way and depending on the loss of income, reduce working hours.
The companies that use the program are responsible for paying 100% of the hours worked and 30% of a variable portion of the hours not worked (66% between August and September and 80% between October and December). Social Security pays the other 70%. For companies with turnover losses equal to or greater than 75%, exceptional support is foreseen, in which Social Security pays 35% of the hours worked.
Unlike what happened with the previous regime, the simplified dismissal, the Support for Progressive Resumption did not allow, until now, the temporary suspension of labor contracts, only the reduction of hours. And this was immediately one of the great limitations pointed out by employers to the substitute for dismissal when it was announced and is one of the explanations for the support mechanism to have a residual use compared to its predecessor.
At the beginning of September, data released by the Ministry of Labor, Solidarity and Social Welfare (MTSSS) indicated that in the first month that the mechanism was available, less than seven thousand companies had requested Progressive Support for Recovery, a figure far below 95 thousand companies that in the same period joined the simplified dismissal – the support in which workers saw their wages reduced by two thirds, with the employer paying 30% and SS the remaining 70%.
The announcement made this Monday by Pedro Siza Vieira responds to the numerous complaints from entrepreneurs who did not see in the Support for the Progressive Curriculum a solution to the difficulties of their companies. And the indicators released last week by Social Security seem to suggest it. The number of companies requesting support for progressive recovery will not have met the government’s expectations, but the end of the simplified layoff in July resulted in an immediate increase in the number of companies requesting the traditional layoff regime. provided for in the Labor Code.
In August, the number of companies that benefited from the scheme increased by 7% compared to the previous month, from 201 to 215, but the number of covered workers more than doubled, from 3,576 to 7,789. The disproportion between the evolution of the number of Companies and covered workers suggest that without the simplified regime available, large organizations will resort to traditional layoffs to cope with the crisis and keep jobs.
“These six months are the most difficult period for workers, companies and tourism in particular,” said Marcelo Rebelo de Sousa at the end of the tourism day, praising “the measures to review the regime after the simplified dismissal.” announced by the Government in this “period of survival of tourism in Portugal”.
The President of the Republic also called on the Portuguese to “continue being tourists in their own country.”
