Calamity - Social support and simplified layoffs

Decree-Law No. 31-C/2026 of February 5 came into force, providing support to companies affected by storm "Kristin" and subsequent weather events, namely through:

a. Exemptions from social security contributions;

b. Simplified layoff scheme; 

c. Employment and training support.

Exemption from social security contributions

There are two types of exemption: total and partial.

• Total exemption: applies to companies whose activity is directly affected; lasts up to 6 months and can be extended for another 6 months. The application must be made to Social Security Direct, using the form, within 30 days from February 6, 2026, with regularized contribution and tax status and proof of loss of income or productive capacity.
   
• Partial exemption (50%): applies to companies that hire unemployed people due to the calamity, under the terms of the applicable Council of Ministers Resolution and any extensions or geographical expansions. Covers hires made in the year following February 6, 2026 (without prejudice to those already made after the Resolution declaring the disaster). The application must be submitted within 15 days of the contract's effective date, or by February 21, 2026, if the contract began before February 6. It requires tax and social security compliance, no wage arrears, and an increase in the number of employees compared to the average of the previous 12 months. Until a decision is made, the company continues to submit remuneration statements and pay the employee’s contributions, but the payments of the contributions covered are suspended upon application; if the application is rejected, there is no interest on arrears if it is regularized within 30 days after notification.

The exemption ends if the deadline expires, if the conditions are no longer met, if there is a breach of reporting obligations, or if the employment contract is terminated.

Simplified layoff (reduction or suspension of contracts)

Companies in financial crisis may reduce or suspend contracts under Articles 298 et seq. of the Labor Code, with exemption from the usual formalities of communications, information, and negotiations.

The application is made online, with justification and identification of the workers covered. You must indicate: economic, financial, or technical grounds; staffing table by section; selection criteria; and number and categories of workers to be covered.

IEFP support (employment and training)

Support is available for employers in the private, cooperative, and social sectors with jobs at risk, and for self-employed workers whose activity or income has been affected. It also covers members of statutory bodies with Social Security discounts.

Support includes: extraordinary financial incentives for employers (help to pay wages), priority in active employment measures, and an extraordinary qualification and training plan.

Conditions and duration of IEFP support

It is necessary to demonstrate difficulties in maintaining jobs or activity due to losses caused by the storm (facilities, equipment, etc.), to comply with salary obligations and maintain jobs, not to initiate dismissals (except for just cause), to have a regularized tax and contribution situation, and to report the incident to the insurance company, if applicable. The rule is a duration of up to 3 months, extendable for a further 3 months upon reasoned request and assessment by the IEFP.