The Creation of the Contract-Generation Measure Introduces New Incentives for Hiring

New Legislation Enacted

Authors: Ricardo Grilo, Senior Associate and Gonçalo Machado dos Santos, Associate - Garrigues Portugal SLP Sucursal

On April 12, 2019, Decree no. 112-A/2019 was published on the official gazette (Diário da República), to regulate the creation and implementation of the Contract-Generation measure, which provides financial incentives to companies that hire for long-term employment young individuals searching for their first job. With this measure, the Government attempts to combat unemployment and job insecurity amongst the young adult population. The measure includes various financial incentives for companies, and establishes eligibility criteria. The decree is effective from April 13, 2019, and applicable to all employment contracts entered into since that date.