Portugal’s Parliamentary Working Group for reform of the country’s labor code has voted in favor of the principle of sanctions to be levied for companies’ excessive use of fixed-term employment contracts. An additional payment of up to 2% of fixed-term employment related payroll could be levied on companies observed to be systematically making use of this type of employment contract. This new tax would only apply when the number of contracts exceeded the relevant sector average. This measure termed ‘excessive rotation’ could apply to all sectors by the end of 2019, once confirmed by Portugal’s Parliamentary Social Affairs Committee.
Contribution payments for ‘excessive rotation’. The Parliamentary Working Group on Labor Code reform * has adopted this measure that imposes a financial penalty on companies making excessive use of fixed-term employment contracts. The ‘excessive rotation’ contribution will apply when a company exceeds the average number of fixed-term employment contracts observed in the relevant business sector. During the first quarter of every year the Ministries of Employment and Social Security will have to
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