Layoff: the new reality for many Portuguese people

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One of the consequences of this global pandemic known as COVID-19 is the impact it is having and will have on the Portuguese economy in the short, medium and long term. Companies are being forced to reinvent themselves and restructure in order to survive this dark cloud that was not included in economic forecasts. Given this scenario, there are only three options: continue operating, lay off or close.

Whatever the decision, none will be taken lightly, however, in recent days thousands of companies have requested the adoption of the simplified layoff regime, a reality that brings me to the topic of this article.

What to do if your company is on layoff?
First of all, it is important to explain that being sent home as a result of a layoff kenya whatsapp number database is, in principle, a temporary situation whose main objective is to restart operations in the near future, while maintaining jobs. Since this is a temporary situation, the company must communicate with absolute clarity the period for which it expects the situation to continue.

Naturally, this is a situation that will cause great anxiety in all households faced with this scenario, but we need to roll up our sleeves and face reality. Although it is not an easy process, there are some measures that can be taken to overcome it in the best possible way, namely:

Perception of new reality
The new reality will naturally have an impact on the personal, family and professional life of each affected worker. It is therefore important to be aware that you will be spending more time at home, with home confinement due to this pandemic. This situation should be shared with family and other people close to you to provide comfort and motivation for this new phase of your professional life.

Reduction in disposable income
In general, employees will experience a drop in their disposable income of around 30%, and this figure may increase if the current value of their remuneration is higher than €2,900.

Most employees who are sent home as a result of a layoff will see their income reduced during the period of the scheme, and will receive two thirds of their normal gross remuneration , with 70% paid by Social Security and 30% by the company. The minimum limit of this remuneration will be the national minimum wage (€635) and the maximum limit will be three times that salary (€1,905).

If we consider, as an example, a couple, both earning income, with two children, depending on the current gross remuneration, the impact will be:





There are two fundamental points that are important to highlight:

1- Income obtained under the layoff scheme is subject to withholding tax at source for IRS and Social Security purposes.

2- Employees with gross remuneration equivalent to the National Minimum Wage will not have any impact on their disposable income.

Financial readaptation
Families must make financial decisions to minimize the impact of reduced disposable income. Therefore, it is necessary to act quickly and with the whole family focused so that, during this period, only essential expenses are covered. It is important to take stock of fixed expenses and consider all the support available within the scope of the Covid-19 Pandemic.

For families with bank financing, especially housing loans, the situation should be communicated to the bank and the account manager should discuss the possibilities for each scenario. In the case of more regular expenses, such as energy and water, there are also companies that allow payment in installments, so it is suggested that you contact these entities in order to choose the best solution for each case.

Professional Training
The time spent at home, on layoff, can be used to attend professional training. In this way, you comply with the obligation to stay at home, decreed by the State of Emergency in which we live, and increase your skills.

To do this, you can take advantage of a wealth of online course proposals, many of which are free. You can also opt for courses that allow for professional recognition. Although these may not be free, they will certainly provide a more effective response to your needs.

Don't forget that acquiring knowledge sometimes opens windows or even doors that we don't expect. Whatever option you choose, take advantage of your time to increase your knowledge and with that you can explore new paths.