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Workers on lay-off increase in April, but reach the lowest level since October
The total number of workers in 'lay-off' increased by 62.5% in April, year-on-year, to 9,212, but reaching the lowest value since October last year and after a peak in November, according to statistics from Social Security.
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Economia Segurança Social
"In April 2024, the total number of 'lay-off' situations with pay compensation (normal concession, as provided for in the Labour Code) was 9,212", 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, there was a decrease of 1,615 'lay-off' benefits (-14.9%) and, in comparison with the same period last year, there was an increase of 3,543 processed benefits (62.5%).
Regarding the number of companies in this situation, Social Security data indicates that, in April, benefits were processed for 575 employing entities.
This is the lowest value since November last year and represents a 9.9% reduction in the chain, after the maximum of 638 in March, but 271 more companies (89%) than in April 2023.
According to the GEP, the working hours reduction scheme was attributed to 5,390 people, while in the temporary contract suspension scheme the number of benefits was 3,822.
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 the labour law, workers on 'lay-off' with suspended contracts are entitled to receive a monthly pay compensation equal to two-thirds of their normal gross salary, with a guarantee of a minimum equal to the national minimum wage (820 euros in 2024) and a maximum corresponding to three times the minimum wage.
Read Also: Autoeuropa resorts to lay-off for restructuring, CT refuses cuts (Portuguese version)
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