Parliament can approve layoff paid at 100% without the AD. Government considers that it violates the brake law

Montenegro announces supplement for pensions in September, Reduction of IRC and support for teachers

José Sena Goulão / Lusa

Parliament can approve layoff paid at 100% without the AD. Government considers that it violates the brake law

The Prime Minister, Luís Montenegro, speaks during the debate on the state of the Nation

The Government considers that the change to the decree would violate the constitutional norm of the brake law, which prevents Parliament from approving measures that significantly increase expenditure without being in the State Budget.

This Wednesday, the Assembly of the Republic debates a request for parliamentary consideration presented by parties to the left of the PS to force the government to guarantee payment of 100% of wages to workers affected by the storms who adhered to the simplified layoff regime.

The initiative comes after the executive has to ensure full remuneration, opting for a model that provides for the two-thirds payment of gross salary, with a minimum of 920 euros and a maximum of 2760 euros.

The Government justifies the retreat with the so-called “brake law”, the constitutional norm that prevents the Assembly of the Republic from approving measures that increase spending or reduce revenues during the execution of the State Budget.

Despite this, Livre, PCP and Bloco de Esquerda moved forward with the initiative to restore full payment of salaries. PS and Chega have already announced support to the proposal, which, if confirmed, will guarantee a parliamentary majority and force the amendment of the decree against the Government’s wishes. The executive admits appealing to the Constitutional Court to block the measure, citing violation of the brake law, according to the report.

However, the budgetary impact of the measure appears limited. In the last fortnightly debate, the Prime Minister revealed that there were 163 layoff requestscovering 1385 workers, a universe considered small.

On the executive side, there is also the argument from precedent. During the covid-19 pandemic, the PS Government applied the regime provided for in the Labor Code, ensuring only two thirds of the remuneration. Consecration of a 100% payment may condition future responses in emergency situations.

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