Portugal: Labour Code reform comes into force

On 01 May, Portugal’s Labour code reform called the Decent Work Agenda came into force. This reform was negotiated over a great many months, approved, and finally published in the Official Gazette on 03 April. The text contains 70 specific measures and modifies some 150 labour code articles. Among the major changes are the right to self-declared  sick leave, fewer temporary employment contracts, and an increase in redundancy payments.
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In the autumn of 2022, Portugal’s majority ruling Socialist government launched wide-ranging negotiations on the Decent Work Agenda. The reform of the Labour Code is based on four pillars, namely combatting precarity, valuing younger cohorts, improving work-life balance, and boosting collective bargaining. The law published on 03 April 2023 and made effective on 01 May 2023 is the Labour Code’s 23rd revision since 2009. Employers believe some of the measures to be unconstitutional, while...

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