Decree-Law No. 12/2013. D.R. (Portuguese official gazette) No. 18, Series I of 2013-01-25

Setting out the legal framework of the social protection scheme in case of unemployment for self-employed persons having a business activity and members of corporate bodies of legal persons with managing or administration tasks.

The social protection granted to the beneficiaries of the scheme set up in this Decree-Law is attributed as a benefit for the termination of the professional activity, meant to compensate the loss of income occurred.

However, granting of that benefit is subject to compliance with all the following requirements:

  • Closing down of the business or unintentional termination of the professional activity, leading to:
    • Significant reduction in turnover determining the closure of business or the termination of the activity for VAT purposes;
    • Judgment of declaration of insolvency determining the termination of the activity of managers or directors or in which the insolvency proceedings culminate with the total and final closure of business;
    • Economic, technical, productive and organisational reasons, which make continuation of the economic or professional activity impossible;
    • Events of force majeure determining the termination of the economic or professional activity;
    • Loss of the administrative permit where the latter is required to pursue the activity and where that loss is not the result of contract breaches or an administrative offence or an unlawful act attributable to the person in question;
  • Compliance with the guarantee period – pursuit of the professional activity during, at least, 720 days and recording of pay in the 48 months immediately before the date of termination of the activity;
  • No outstanding contributions owing to the social security, payable either by the beneficiary or by the business;
  • Loss of income leading to the termination of the activity;
  • Registration with the employment centre of the area of residence;
  •  Submission of an application within 90 days from the closure date of the business or the date of termination of the activity.

The daily amount of the benefit granted in accordance with this scheme is 65% of the reference remuneration calculated on the basis of a 30-day month. The reference pay is equivalent to the average daily pay defined by R/360, in which R represents the total amount of pays recorded in the 12 calendar months before the 2nd month prior to the date of termination of the professional activity.

Despite the fact that this Decree-Law takes effect on February 1, 2013, the procedures required to implement this legislation must still be approved by ministerial order.