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.
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.
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