Portugal: new cut to layoff benefits from 20 down to 12 days and new provident fund for the benefits

The benefits paid to laid-off Portuguese workers are going further down, to 12 days per year with a permanent contract in the company as opposed to 20 today.  In keeping with its promise to the IMF and EU, the government wants this new Labor Code reform to come into force in October or November 2013, after the Parliament adopts it soon.  The Parliament also agreed to the creation of two funds.  One will be used to pay for part of the layoff benefits.  (Ref.  130442)
Enjoy this article for free while you’re in your trial period
You have access to our content for 1 month.

Layoff pay. The Parliament approved the government’s bill No. 120/XII, which once again amends the compensation system in case of layoffs. Now, it will amount to 12 days per year spent in the company. This is the 2nd Labor Code review as far as layoff pay is concerned. in 2012, the MPs approved a first cut, bringing compensation from 30 down to 20 days per year spent in the company (see article No. 120340).

Different system for fixed-term contracts. The lawmaker accepted to make a...

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
France: social conference on labour and pensions to proceed without main employers’ group
The preparatory meeting ahead of the social conference on labour and pensions, which is set to decide on the pension system model and the funding thereof, was held on 4 November at France's labour...
Spain: already well on the way to pay transparency?
Spain is preparing for the implementation of its national law transposing the EU Pay Transparency Directive, which will take effect on 7 June 2026. The legislation marks another step forward in...
5 November 2025
Italy: decree-law adopted to increase workplace safety
On 28 October, the Italian cabinet adopted a decree-law on health and safety at work, aimed at preventing and reducing accidents. The text addresses both the powers and actions of supervisory...
4 November 2025
Romania: parents of children with disabilities granted up to eight days of remote work per month
On 9 October, the Romanian parliament adopted a bill aiming to bolster support for parents of children with disabilities up to the age of 18. The legislation, which came into force on 12 October...
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: legal battle at Tesla ahead of works council election
The Frankfurt/Oder labour court has postponed a mid-November hearing in the case between the IG Metall union and Michaela Schmitz, employee representative and head of the works council at the...
2
Netherlands: ING cites AI as it plans to cut around 950 jobs
Dutch bank ING has informed the employment agency UWV that it may cut around 950 jobs by 31 December 2026. In its notification on 20 October, the lender said the planned reductions stem partly...
30 October 2025
3
AI-driven job cuts on the rise in tech sector
As leading tech companies ramp up investment in artificial intelligence (AI) and roll out transformation plans to boost its development, layoffs across the sector are increasing. But are the job...
7 October 2025
4
France: generative AI and older workers central to BPCE’s skills management strategy
On 17 July 2025, BPCE and its trade unions signed a second agreement on jobs and career management within the banking group. The text places generative artificial intelligence at the core of its...
5
France: austerity measures proposed in social security financing bill for 2026
Limits on sick leave, the end of social security exemptions for apprentices, and the introduction of additional birth leave: the 2026 social security financing bill, presented to parliament on 14...
16 October 2025
6
Carrefour and UNI Global Union renew global agreement on promoting social dialogue and diversity
On 17 October, Carrefour, one of the world’s largest retailers, with nearly 500,000 employees worldwide, and global union federation UNI Global Union renewed their global agreement on...