Costa says that “lay-off” will continue but will evolve

in News · 01-06-2020 15:43:00 · 0 Comments

The Prime Minister said hat the 'lay-off' regime, within the scope of the new economic and social stabilisation programme, will evolve into a mechanism that allows both to maintain employment and not penalise workers' income.

António Costa was speaking after receiving the social partners, in São Bento, at a press conference in which he said that the economic and social stabilisation programme will be approved next week in the Council of Ministers.

One of the four pillars of this programem, according to the executive's leader, has to do with the objective of maintaining jobs.

"The simplified 'lay-off' is a measure that has so far allowed to preserve more than 800 thousand jobs. It is a measure that necessarily has to evolve from the end of June, namely so that it is not an incentive negative for companies to make the effort they must make to try to resume their activity", he justified.

This new lay-off model, stressed António Costa, "should not be an instrument that penalises workers' income".

"We have to evolve this instrument so that it continues to be effective in protecting the workplace, but progressively leaving a factor of loss of income", he added.

The prime minister said he had received proposals for the revision of the lay-off regime of social partners and parties, concluding that, among all of them, "there are no fundamental incompatibilities" and that it will be possible for the government to "design" a new mechanism that meets the employment objectives.

Given the insistence of journalists on the issue of the new model of 'lay-off', António Costa stressed that the Government listened to all partners, "both those who considered it essential to keep it, and those who want to change it".

"The Government has a very clear picture of what needs to be preserved and what needs to be changed. I think we will be able to build a proposal that meets what is necessary to safeguard, the ability of companies to remain alive and without destroying jobs, and simultaneously eliminate the progressive loss of workers' income", he replied.

One of the questions to be investigated, pointed out the Prime Minister, "is whether the 'lay-off' is associated with a non-payment of the Single Social Fee (TSU) by the employer, contrary to what happens in the 'normal' lay-off.

"In the rebalancing equation between the Social Security financing needs, avoiding the loss of workers' income, the preservation of jobs and the sustainability of companies, the Government must find a positive sum for all", he added


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