This decree establishes support measures intended for:
- Workers;
- Self‑employed workers;
- Employers;
- Private Social Solidarity Institutions (IPSS) and the Social Sector;
- Families.
The territorial scope of the decree, currently defined by Council of Ministers Resolutions no. 15‑B/2026 and 15‑C/2026, may be subject to changes if damage is identified in areas not previously considered in those resolutions.
Regarding temporal scope, Decree‑Law no. 31‑C/2026 applies retroactively to 28 January 2026, the date on which the damage caused by the storm began.
Below is a brief indication of the main measures approved, with special emphasis on the labour and social security implications for companies and workers affected by Storm Kristin.
Simplified Lay‑off Scheme
The decree reactivates the simplified lay‑off mechanism for private‑sector and social‑sector employers affected by the storm, under the following terms:
Employers that are demonstrably in a situation of business crisis due to the storm’s impact may access this scheme. At an initial stage, the business‑crisis situation is considered proven through the submission of the employer’s application (which must state the grounds evidencing the business‑crisis). However, the decree provides for a subsequent verification of the validity of the application to prevent abusive use of the measure.
The scheme allows for the temporary reduction of normal working periods or suspension of employment contracts (as provided for in Articles 298 et seq. of the Labour Code), exempting various formalities and deadlines required under the general law, including the obligation to give prior notice to workers or workers’ representative bodies of the intention to apply the measure. It also exempts the obligation to carry out an information and negotiation phase.
The request must be submitted to the Social Security Institute (Instituto da Segurança Social, I.P.) via www.gov.pt .
Exemption from Social Security Contributions
Decree‑Law no. 31‑C/2026 also establishes a temporary exemption from the employer’s Single Social Tax (TSU), under the following terms:
Total Exemption:
For companies whose activity is directly affected by the state of calamity. It is valid for 6 months, renewable for another 6 months. Employers may use this measure only if, at the time of application, they have a regularised social‑security and tax situation, and if they have suffered a loss of income or productive capacity directly caused by the calamity.
Partial Exemption (50%):
Applies to companies that hire workers who became unemployed because of the calamity and is valid for 12 months. Companies may use this measure only if they:
(i) have a regularised social‑security and tax situation;
(ii) are not in arrears regarding salary payments; and
(iii) have, at the application date, a total number of workers higher than the average number of workers registered in the preceding 12 months.
These measures cannot be accumulated with other extraordinary measures that pursue the same purpose.
Employer Obligations
Companies and entities benefiting from these supports are subject to strict duties during the granting period, under penalty of termination of benefits and reimbursement of the amounts received. The main prohibitions and obligations include:
- Prohibition on distributing profits (in any form, including advance withdrawals);
- Prohibition on increasing remuneration of members of corporate bodies;
- Maintenance of a regularised social‑security and tax situation;
- Maintenance of employment levels and of the employment contracts receiving support;
- Timely payment of contributions (except where exemptions apply).