COVID-19 the infectious disease caused by the most recently discovered coronavirus led Portugal to declare the state of emergency on the 18th of March. The state of emergency was renovated on the 1st of April and it will last until the 17th.

Economical Consequences

a) Expected 5% deficit and an unemployment rate of 12% by the end of 2020;
b) Severe losses in tourism sector – hotels, bars, restaurants, activities in the field of culture, sports and entertainment, retail, passengers transport, commerce, services, industries and etc.

Labour Consequences

When compared with 2019, all the companies that have had a billing reduction during the two previous months, suspension of activity or cancellation of orders, may require the procedure of lay-off.

During lay-off (which is monthly renovated up to 3 months) workers will stay at home and will get 70% of their salary. To be precise, 2/3 of this amount will be paid by the national social security and 1/3 will be paid by the employer.

All the companies that require lay-off procedure cannot fire workers.

Legal Consequences

All courts are working on only urgent proceedings.

Social Consequences

Borders of Portugal are closed, except in what concerns to freight transport;

And population is advised to stay at home, except to go to pharmacies, supermarkets and to go and give some family assistance.

At this date, 3rd of April, Portugal has almost 10.000 infected people and 248 already died.

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