The diploma that reinforces support for the recovery has been published. Companies can reduce working hours in 100%.

The Executive will make the support mechanisms more flexible in order to reach more companies with increased support, especially those most affected by the crisis. On Monday, October 19th, the Government diploma that alters the extraordinary support for the resumption of business activity was published. Signaling that the changes aim to "better calibrate” this instrument and go in the direction of "reinforcing support to employers in greater difficulty, to expand access to more employers and thus improve their coverage, to strengthen incentives for training and, at the same time, complementary support aimed at employers and workers”.

This diploma amends Decree-Law no. 46-A/2020, of July 30th, which regulates extraordinary support for the progressive resumption of activity in companies in situations of a business crisis. Companies with breakages of billing equal to or greater than 75% are now able to reduce the Normal Working Period (PNT) to 100%, with the worker always being guaranteed a minimum of 88% of the remuneration, and in these situations, Social Security ensures the payment of 100% of the compensation, while maintaining the regime contained in Decree-Law 46-A/2020 regarding social contributions.

"With the objective of reinforcing support for companies in greater difficulty, it is now admitted that employers with a breakdown of billing equal to or greater than 75% may reduce the PNT to 100% while establishing that, for these employers, the financial support granted by social security for the purpose of paying workers' compensation corresponds to 100% of the compensation. At the same time, it is ensured that, in situations where the reduction in the PNT is greater than 60%, the worker's compensation is adjusted as necessary to ensure that he receives 88% of his normal gross pay”.

On the other hand, the support for the progressive recovery starts to cover companies with billing losses equal to or greater than 25%, allowing the reduction of the PNT up to 33%, reviewing the concept of a business crisis.

Regarding this change, the Executive points out in the diploma that "in order to expand the access of more employers to measure, the concept of a business crisis situation is revised, allowing the measure to be applied by employers with billing losses equal to or greater than 25%, establishing, in this case, that the maximum limit for the reduction of the PNT to be observed is 33% - in order to preserve the proportionality in the relationship between the business crisis situation and the applicable limits of the point of view of PNT reduction”.

Reduced hours until December

In the case of an employer with a break in invoicing equal to or greater than 25%, the reduction in the PNT, per worker, can thus be a maximum of 33%, in the months of October, November, and December 2020.

However, if the employer has a turnover drop of 40% or more, the reduction in the PNT, per worker, can be at most: 50%, in the months of August and September 2020; and 40% in the months of October, November, and December 2020. 

In the case of an employer with a break in sales of 60% or more, the reduction in the PNT, per worker, can be at most: 70%, in the months of August and September 2020; and 60% in October, November, and December 2020. 

In situations where the employer has a turnover drop of 75% or more, the reduction in the PNT, per worker, can be up to 100% in the months of October, November, and December 2020.

According to the diploma, for inspection purposes, the reduction of the PNT is measured in average terms, per worker, at the end of each month, with respect to the maximum limits of the daily and weekly PNT provided for in the Labor Code or those provided for in a regulatory instrument applicable collective bargaining agreement.

New business crisis situation concept

According to the diploma, the new concept of a business crisis situation becomes one in which there is a 25% or greater drop in billing, in the full calendar month immediately preceding the calendar month to which the initial support request refers or extension, compared to the same month of the previous year or compared to the monthly average of the two months prior to that period. Or, still, for those who started the activity less than 12 months ago, in view of the average monthly billing between the beginning of the activity and the penultimate full month prior to the calendar month to which the initial request for support or extension refers.

In terms of support for the training of workers, the amount of the scholarship for the training plan provided for in the diploma is increased, from 66 euros to 132 euros for the employer and from 66 euros to 176 euros for the worker. 

"The regime applicable to the complimentary training plan is also revised, immediately with an increase in the value of the scholarship to which the employers and workers covered by it are entitled while establishing that the training plan must ensure at least at least 50 hours of training”, says the Executive, also realizing that some clarifications are also introduced in this matter, namely regarding the list of bodies that may be involved in the approval of the training plan.

Finally, the submission of applications is allowed until the month following that to which the initial request for support or extension relates.