Sinthesis of Support Decree

On March 23 2021, the s.c. Support Decree (Law Decree 41/2021) came into force; please find below a summary of the main provisions related to employment.

Extension and renewal of fixed-term contracts

Without prejudice to the maximum overall duration of 24 months, it will be possible until 31 December 2021 to renew or extend fixed-term contracts for a maximum period of 12 months and for one time only, even without the conditions provided by law (i.e. (i) temporary and objective needs, unrelated to ordinary activities; (ii) needs to replace other absent workers; (iii) other needs related to temporary, significant and non-programmable increases in ordinary activity). The Decree also specifies that extensions and renewals already occurred are not taken into account.

Suspension of dismissals

The suspension of dismissals for organisational or economic reasons, both individual and collective, has been extended until 30 June 2021. From 1 July to 31 October 2021, the suspension of dismissals remains for employers who may benefit from the Covid-19 social shock absorbers.

The exceptions to the suspension already provided are confirmed (i.e. dismissals motivated by the definitive cessation of a company’s activities or bankruptcy, agreement with union providing incentives to terminate an employment relationship or a change of contractor).

Covid-19 social dumpers

Redundancy funds linked to Covid-19 (CIG) are extended for a duration of 13 weeks in the period 1 April 2021 – 30 June 2021 for the Industrial Sector and of 28 weeks in the period 1 April 2021 – 31 December2021 for the Commercial Sector, both free of charges.

Supports for employees

Until 30 June 2021, where the work cannot be performed remotely, the absence from work of an employee sufferring oncological or immunodeficiency diseases or with life-saving therapies, as well as disabled employees (Law 104/1992), is equivalent to hospitalisation and is prescribed by the competent health authorities. This period of absence from work shall not be taken into account for the purposes of the protection period in case of illness provided by te NCLA and cannot be paid. Until the same date of June 30, 2021 these employees shall normally perform their work remotely.