Portugal: National Assembly adopts modifications to the labor code upon its first reading

On 18 July Portugal’s national Assembly adopted the labor code reform at its first reading. The reform aims to reduce precarious work by restricting fixed term employment contract renewals and by levying taxes on the excessive use of such contracts. These reforms do not completely overhaul the labor code that underwent significant changes in 2012. The radical left wing, which supports the socialist government voted against the modifications and the right wing abstained. The liberal right Social Democrat Party has previously indicated it will be submitting several amendments. The draft law now has to go before committee examination before being definitely approved.
Enjoy this article for free while you’re in your trial period
You have access to our content for 1 month.

Labor code reform adopted. The draft legislation, a result of collaboration between the government, the employers’ bodies, the UGT union (c.f. article No.10701), albeit without support from the Communist party allied union the CGTP, was adopted thanks to the abstention by the right wing within the national Assembly. Both the Communist Party and the Left Wing Block, which backed the social government at the outset of the reform initiative, rejected the text. The reform’s five proposals will go f

Do you have information to share with us?
What you absolutely must read this week
The essential content of the week selected by the editorial team.
See all
EU: social partners split over competitiveness and action on job quality
The European Trade Union Confederation and BusinessEurope have published their response to the consultation document on the European Commission's upcoming EU quality jobs initiative. The two...
4 February 2026
2026 TRENDS — Social dialogue, a major challenge in the deployment of AI in companies
mind RH is analysing the trends that will shape 2026. Artificial intelligence is emerging as a force that goes far beyond efficiency gains and productivity improvements. It is reshaping tasks...
4 February 2026
The major trends of 2026
New regulations coming into force, economic uncertainty, evolving skills requirements… More than ever, the HR function will play a strategic role within organizations in 2026. mind HR...
Germany: collective bargaining negotiations begin in chemical industry
Collective bargaining talks in Germany’s chemical and pharmaceutical industries are due to open this week, covering nearly 580,000 employees across around 1,700 companies. With the sector facing...
3 February 2026
Most viewed articles of the month on mind HR
What readers clicked on the most last month.
What readers clicked on the most last month.
1
Germany: government seeks to facilitate immigration of skilled Indian workers
During a visit to India earlier this week, German Chancellor Friedrich Merz addressed the strategic importance of attracting Indian workers to Germany, signing a series of cooperation agreements...
2
France: 2026 budget expected to maintain employer contribution relief
On 19 January 2026, French Prime Minister Sébastien Lecornu decided to invoke Article 49.3 of the Constitution to pass France's 2026 budget without a vote in the National Assembly. Three days...
3
EU: Cyprus unveils its six-month presidency programme
Cyprus has set out its priorities for its six-month presidency of the Council of the EU. On the social front, the centre-right government will focus on the Union of Skills, which aims to boost...
4
Informal economy and slow wage growth hamper decent work, ILO says
The International Labour Organisation published its Employment ans Social Trends 2026 on 14 January. It anticipates unemployment stabilising in 2026 and employment growth of 1%, driven by...