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Companies in lay-off in March reach maximums for the 6th consecutive time
The total number of workers on 'lay-off' was once again close to 11,000 in March and the number of companies covered totalled 638, reaching a maximum value for the sixth consecutive time, according to Social Security statistics.
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Economia Lay-off
"In March 2024, the total number of 'lay-off' situations with wage compensation (normal concession, as provided for in the Labour Code) was 10,827", according to the summary prepared by the Strategy and Planning Office (GEP) of the Ministry of Labour, Solidarity and Social Security.
Compared to the previous month, March saw a decrease of 180 'lay-off' benefits (-1.6%) but, in comparison with the same period last year, there was an increase of 6,425 benefits processed (+146%) for workers.
As for the number of companies in 'lay-off', Social Security data shows that, in March, benefits were processed for 638 employers, the highest number since the beginning of the series made available, which starts in 2006.
The number of companies in 'lay-off' has been reaching maximums for six consecutive months, since October 2023, when 480 employers were covered.
The number of workers covered by 'lay-off' has also been increasing for several months.
Compared to the same month last year, in March there were 376 more companies in a 'lay-off' situation and, compared to February, there were 29 more employers in this situation.
According to the GEP, the working hours reduction scheme was granted to 6,213 people, while in the case of the temporary contract suspension scheme, the number of benefits was 4,614.
The 'lay-off' provided for in the Labour Code results in a temporary reduction in normal working hours or a suspension of employment contracts made at the initiative of companies in crisis.
According to labour law, workers in 'lay-off' with suspended contracts are entitled to receive a monthly wage compensation equal to two-thirds of their normal gross salary, with a guarantee of a minimum equal to the value of the national minimum wage (820 euros in 2024) and a maximum corresponding to three times the minimum wage.
Read Also: Panasqueira miners extend strike and company threatens 'lay-off' (Portuguese version)
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