Law No. 83/IX/2020, of 4 April 2020, was published, enacting additional new exceptional measures in virtue of the emergency situation caused by COVID-19.

The rules foreseen in this statute produce retroactive effects to 20 March 2020 for the island of Boavista (where the first case of infection in Cape Verde was detected) and to 26 March in the remaining territory (date on which the state of calamity was declared through Resolution No. 53/2020).

The new measures apply to the private sector, the services of the direct, indirect and autonomous administration of the State, Local Authorities, the State’s business sector, independent administrative entities, the services and bodies under the Presidency of the Republic, the National Assembly, and the Courts.

Notable amongst the additional measures approved are the following:

(i) Simplified regime for suspension of employment contract (lay-off)

• The employer may suspend the employment contract of all or some employees, for a period of up to 90 days, as from 1 April 2020, grounded on temporary market difficulties, economic factors and lack of supply of raw materials or other goods, provided that there are no other ways for the relevant employees to provide their work, especially by teleworking;
• Employers that communicated to the General Directorate of Labor by 1 April the suspension of employment contracts for these reasons are covered by this regime;
• The employer must inform the employee affected by the suspension with at least 3 days’ notice;
• The suspended employee will be entitled to a monthly or pro rata benefit in the amount of 70% of his/her base salary, calculated in the same way as sickness benefit, with the amount due paid in equal parts by the employer and the management entity of the social protection system (the “INPS”);
• During the period of suspension of the employment contract, employers and employees are exempt from paying social security contributions;

(ii) Exemption from payment of Social Security contributions

• Companies registered in the general mandatory social protection regime are exempt from paying their relevant contributions in the months of April, May and June 2020, provided that a 30% monthly reduction in turnover is proven, compared to the same period last year;

(iii) Procedural acts

• During the state of emergency, the judicial holidays regime will be applied to procedural acts that must be executed within the scope of the processes and procedures under way in the Courts, Public Prosecutor’s Office and with Tax Enforcement Bodies;
• Judicial deadlines, limitation periods and expiration dates related to all types of processes and procedures are suspended;
• The aforementioned suspension prevails over any regimes that establish maximum mandatory periods of limitation or expiration, these being extended for the duration of the state of emergency;
• During the state of emergency, the only procedures that will be carried out in person are those which are urgent and in which fundamental rights are at stake (such as those involving imprisoned defendants or minors at risk), the number of persons present being limited;
• The performance of procedural acts through the appropriate means of communication by distance, namely by email, video or teleconference, is allowed;

(iv) Leases

• Suspension of: (a) the effects of any termination of lease operated by landlords, for both residential and non-residential lease contracts; (b) foreclosure on property that constitutes the defendant's own permanent residence;
• The closure of facilities and establishments due to the state of emergency cannot serve as cause for termination, prevention of renewal or any other form of cancellation of non-residential lease agreements or of other contractual arrangements for the use of a commercial property, nor as grounds for eviction from properties.

(v) Document validity

• For all legal purposes, public authorities will accept as valid documents that have expired and are subject to renewal, whose period of validity expired after 5 April or expired in the 15 days immediately prior to that date;

(vi) Deadlines for tacit granting of licenses

• Deadlines are suspended for the tacit approval by the administration of authorizations and licensing requested by private individuals and within the scope of the environmental impact assessment;

(vii) Extension of deadline for companies’ general assemblies

• General assembly meetings of companies (as well as of associations and cooperatives), which by law or statute must be held in April or May, may on an exceptional basis be held by 30 June 2020.

For further information, please contact:
[email protected]