Portugal: a white paper on labour law reform

Relationship between law, collective agreements and labour contract. Traditionally, the law established binding minima that could only be improved by the collective agreements and the labour contract. The most favourable solution for the employee should prevail in all situations. The Labour Code of 2003 revolutionised this scheme by establishing the principle that the law should be presumed optional to the collective agreement, unless otherwise expressed or interpreted. This means that, in principle, the law could be derogated either for better or worse by the collective agreement, unless that the law was interpreted as mandatory. The Commission opted to maintain this principle with a slight nuance: in relation to a number of subjects expressly mentioned in article 4 of the Labour Code (non-discrimination; protection of maternity and paternity; child workers; disabled workers; student-workers; employer’s duty of information; limits to working time and rest periods; including paid-leaves; protection of wages; health; safety and hygiene at work; industrial accidents and professional diseases; transfer of undertakings and rights of shop-stewards) the collective agreement may only establish higher standards.