The document also provides for the suspension of monthly contributions from companies, by around 1%, to the Work Compensation Fund (FCT), which was created at the time of the 'troika' to pay part of the redundancy payments.

In the proposal, the Government includes the "increase of compensation for termination of employment contract to 14 days in situations of collective dismissal or termination of the job and suspension of monthly contributions to the Work Compensation Fund from 2023".

Currently, a worker dismissed within the scope of a collective dismissal process is entitled to compensation corresponding to 12 days of base pay and seniority payments for each full year of seniority.

The reduction in the amount of compensation to 12 days came into force in October 2013, at the time of the 'troika'.

Before the financial adjustment program in Portugal, compensation for dismissal was equivalent to about one month for each year of seniority.