Portugal: new bill limits the duration of collective agreements and allows exceptions for ailing businesses

On June 5, the government adopted a bill that amends certain aspects of collective agreements’ law.  These agreements will be valid for 3 years instead of 5 before.  The bill also provides that the validity of agreements goes from 18 down to 12 months in case of termination and allows ailing businesses to derogate from the sector’s collective agreement.  The decision to legislate caught the CGTP off-guard.  The union denounced a forced passage as negotiations were open on the issue of collective agreements.  The government received the green light from the UGT union confederation.
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Duration of collective agreements amended. The government wants to amend article 501 of the current Labor Code (2012), bringing the duration of collective agreements from 5 down to 3 years. According to the bill sent to the Parliament, the period for “maintaining” the agreement will last for 12 months instead of 18 before. This period is designed to maintain the rights and obligations of the partners concerned in case of bargaining, conciliation, mediation or arbitration after the...

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