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Newsletter 30 Nov 2023 · Portugal

Meet The Law - Employment & Pensions Law

Exceptional incentive to return to work for the long-term unemployed

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We would like to highlight one of the measures published in Decree-Law no. 113/2023, of November 30, which establishes an incentive to return to work for long-term unemployed people (who have been receiving unemployment benefit for more than 12 months), which allows partial accumulation of the amount of unemployment benefit with income from work.

Long-term unemployed people can benefit from this measure after 12 months of receiving unemployment benefit, provided that:

a)    They accept a job offer presented by the competent public services in the area of employment and vocational training or obtain a placement by their own means with the entering into a full-time employment contract in one of the following types:

   a.    Open-ended/for an indefinite period;
   b.    Fixed-term with an initial duration of 12 months or more;
   c.    For an uncertain term, provided that the foreseeable duration is equal to or greater than 12 months;

b)    The remuneration for employment is equal to or less than the reference remuneration for unemployment benefit.

The amount of unemployment benefit to be awarded to beneficiaries depends on the type of employment contract entered into, as follows:

a)    Open-ended/for an indefinite period employment contracts:

   a.    65 % between the 13th and 18th month;
   b.    45 % between the 19th and 24th month;
   c.    25% between the 25th month and the end of the concession period;

b)    Fixed-term or uncertain term employment contracts: 25% between the 13th month and the end of the unemployment benefit period for fixed-term contracts with an initial duration of more than 12 months;

c)    The provisions of paragraph a) shall apply to fixed-term or uncertain term employment contracts converted into open-ended/for an indefinite period contracts, with effect from the month following the date of the respective conversion.

This measure will apply from 01.12.2023 to 31.12.2026.

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