Major Revisions to Portugal's Labor Code
The Portuguese government has proposed a comprehensive revision of labor legislation, dubbed "Trabalho XXI," which aims to update over 100 articles of the Labor Code. This initiative, set for debate with social partners, focuses on enhancing flexibility, competitiveness, and worker rights.
Key Areas of Change
- Parental Leave: The initial parental leave for childbirth may extend to six months if shared between parents, with adjustments to mandatory and optional periods. Currently, it's 120 or 150 days, but the new proposal allows for up to 180 days with shared options.
- Paternity Leave: Fathers will be required to take 14 consecutive days immediately after birth, up from the current seven days, as part of their 28-day exclusive leave.
- Breastfeeding Rules: A two-year limit is introduced for breastfeeding breaks, down from no maximum, and medical certificates must be provided every six months for proof.
- Gestational Grief Leave: The three-day paid leave for pregnancy loss is eliminated; instead, parents can use up to 15 days of unpaid family assistance leave.
- Flexible Work: Clarifications on the right to refuse weekend or night work for parents, aligning with company operational needs.
- Strike Minimum Services: Expansion to include elderly care, childcare, disability services, food supply, and private security in essential services during strikes.
- Fixed-Term Contracts: Initial duration for first contracts increases from six months to one year, with maximum terms extended from two to three years for certain contracts and from four to five years for others.
- Individual Time Bank: Reintroduction allowing up to two extra daily hours, 50 weekly hours, and 150 annual hours, with a four-month reference period and three-day advance notice.
- Training Hours: Reduction to 20 hours per year for micro-enterprises, down from the current 40 hours.
- Dismissals: Simplifications for small and medium enterprises, including options to avoid reinstatement for unlawful dismissals and handling fraudulent sick leave declarations.
- Quotas for Disabled Workers: Threshold lowered from 60% to 33% incapacity for employment quotas.
- Independent Workers: Economic dependency threshold raised from 50% to 80% of income from a single client.
- Digital Platforms: Implementation of EU directives for better working conditions and data protection in gig economy jobs like TVDE.
- Telework: Easier for employers to deny telework requests, with revocations of certain worker protections.
- Vacation Days: Option to purchase up to two additional vacation days with pay loss but retained benefits.
- Subsidies: Choice to receive holiday and Christmas subsidies in monthly installments or lump sums.
- Probation Period: Elimination of the 180-day probation for first-job seekers and long-term unemployed.
- Social Security Reporting: Decriminalization of failure to report worker hires to Social Security.
This reform, led by the Minister of Labor, aims to balance flexibility with worker protections, though it has faced criticism from unions who argue it weakens rights, while employer confederations view it as a positive step for negotiation.
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