The “2013 Stimulus” Programme
The 2012 Stimulus Programme established by Ministerial Order 45/2012, of 13 February, sought to incentivise the hiring and training of unemployed persons of certain characteristics, through the grant of financial support to the employers, if they entered into employment contracts with unemployed persons enrolled at an employment centre for at least six consecutive months, on the condition of net job creation and the offer of training in line with the needs of the companies.
The new 2013 Stimulus programme establishes active employment measures which incentivise the hiring of unemployed persons and foster the improvement of their employability status as a measure for combating unemployment, particularly in the fight against long-term unemployment.
The new measure continues the grant of financial support to employers who enter into employment contracts with unemployed persons enrolled at an employment centre or vocational training and employment centre and establishes an obligation for the employers to provide them training. It and also makes provision for the grant of a conversion premium if the employers convert fixed-term employment contracts into permanent employment contracts for the workers in question, either under the new measure or under the 2012 Stimulus Programme.
The new 2013 Stimulus Programme also broadens the range of categories of unemployed persons potentially envisaged by the measure and also, in cases where permanent contracts are entered into, the increase of the maximum period for the financial aid from six to eighteen months as well as of the monthly amount of the support.
The programme is open to both individuals and private sector companies and businesses, profit-making or otherwise, that meet certain requirements, as well as companies that have initiated a special revitalisation process, as set out in the Business Recovery and Insolvency Code (CIRE), provided that their contributions to both the tax authority and the social security administration are in order.
These requirements must be satisfied by the time the application is filed and throughout the financial support period.
In order for this financial support to be granted, the companies will have to enter into a full-time or part-time employment contract with an unemployed person who has been enrolled at an employment centre or vocational training and employment centre for at least six consecutive months, or at least three consecutive months if he/she did not complete basic education, or is 45 years of age or more, or is a single parent, or whose spouse is also unemployed. The person hired may not have been registered with social security as a worker at a given company or as self-employed in the twelve months prior to the date of the application for the measure, nor can he/she have been studying during that period. For this purpose, persons enrolled at an employment centre or at a vocational training and employment centre as workers whose employment contracts have been suspended on the grounds of non-timely payment of salary are equated to unemployed persons.
In order for the financial aid to be granted, it is necessary that there be net job creation.
In cases where the unemployment contract is suspended owing to maternity or sickness, for as long as the support is suspended, the obligation to maintain the level of work for a total number of workers equal to or greater than the number of workers covered by the support is also suspended.
Under this programme, the employer is also entitled to a conversion premium, and is obliged to compile a quarterly report during the financial support period, in cases where a fixed-term employment contract, previously covered by the 2012 Stimulus Programme or by the current Programme, is converted into a permanent employment contract by agreement of the employer and employee.
In cases where the employment contract entered into is a fixed-term employment contract, the financial support period will be six months, whereas, in the case of a permanent contract, the support period will be eighteen months.
The amount of financial support granted under this measure is equivalent to 50% of the worker’s monthly pay, and may be equivalent to 60% of the workers’ monthly salary in the case of entry into an employment contract with an unemployed person enrolled at an employment centre or vocational training and employment centre and to whom one of the following situations apply:
a) enrolled as an unemployed person at an employment centre or vocational training and employment centre for at least 12 consecutive months;
b) beneficiary of the Social Welfare Allowance (Rendimento Social de Inserção);
c) disabled or handicapped person;
d) aged 25 or less;
e) aged 50 or more;
f) worker who did not finish middle school (3.º ciclo do ensino básico);
g) worker of the sex that is least represented in sectors of activity that traditionally employ a majority of persons of the same sex.
The financial support provided may not exceed the Social Support Index (IAS) times 1 per month in the case of fixed-term contracts, and 1.3 times the IAS per month in the case of contracts that are entered into as permanent contracts from the outset.
The support is suspended in cases where the contract is suspended owing to maternity or illness and is reinstated if the contract still remains in effect after the suspension period.
Within the scope of this measure, applications filed and not decided on prior to the date of commencement of Ministerial Order 106/2013, of 14 March, will be governed by Ministerial Order 45/2012, of 13 February. However, in relation to the aforementioned undecided applications prior to the commencement of this Ministerial Order, employers may request the application of the new regime and reformulate their application within the time limit to be granted by IEFP, I.P.
This Ministerial Order comes into force on 14 April 2013.
Cristina Viegas