Portugal: puts in place new rules regarding the length of collective agreements and also allows for the suspension of agreements under difficult economic circumstances

The decree that changed the length of time that collective agreements can be applied came into force on September 1, 2014. This represents the final measure negotiated within a framework of labor law related adjustments to be applied in Portugal that reached their conclusion at the end of June 2014. Apart from reducing the length of a valid agreement from 5 to 3 years, the decree also reduces its life from 18 to 12 months if negotiations have already been entered into. A second significant development is that it is now possible to invoke unfavorable economic conditions as the reason for suspending an agreement.
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A new legal framework. The text that comes into force on September 1, 2014 states that a collective agreement, in the absence of renewal, loses its legitimacy 3 years after its end date (by reaching its end date, through termination, etc…) versus 5 years previously. Legitimacy of collective agreements that have already expired was a reform that was introduced in 2009. Law 55/2014, article 501 looks to reduce the period of time for renegotiating an agreement from 18 months to 12 months during wh

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