Latest updates

Appeal court rules on employer's decision to withdraw public holidays
  • Portugal
  • 04 January 2017

A recent Guimaraes Court of Appeal case examined the legality of an employer's decision to withdraw two public holidays from its employees. The court held that the granting of the public holidays to employees amounted to a binding employment practice, as it was general in character, fixed and constant. As a result, the court decided that the employer could not make a unilateral change to the practice that, because of its classification as a custom, had become binding.

Supreme Court of Justice rules on employee dismissal following employer insolvency
  • Portugal
  • 21 December 2016

A recent Supreme Court of Justice decision examined whether the payment due for the termination of an employment contract as a result of a collective dismissal following an employer's declaration of insolvency was a debt of the insolvent estate or the insolvent company. The court decided that the compensation awarded to the employee in the case at hand was a debt of the insolvent company and not the insolvent estate.

Changes to employment support introduced
  • Portugal
  • 14 December 2016

Recent changes to employment law have removed the obligation on unemployed people to present themselves at an employment exchange every two weeks in order to maintain their unemployment benefits. The changes have also introduced a system of personalised employment support, which involves integrated support for the recipients of unemployment benefits.

Supreme Court considers lawfulness of employee dismissal
  • Portugal
  • 12 October 2016

A recent Supreme Court of Justice decision evaluated the lawfulness of a dismissal resulting from an irregularity in the employee disciplinary proceedings due to a violation of the adversarial principle and the right to a defence in disciplinary proceedings. The court found that the person handling the proceedings had not presented her case regarding a request to provide evidence and declared the proceedings to be invalid.

Amendments to employment law introduced
  • Portugal
  • 28 September 2016

Law 28/2016 recently introduced amendments to the Employment Code regarding the rules promoting health and safety at work and the operation and licensing of private placement and temporary employment agencies. Among other things, the changes increase the responsibility of employers in relation to temporary employment and the occasional provision of workers.

Use of remote surveillance in workplace and just cause for dismissal
  • Portugal
  • 27 July 2016

The Guimaraes Court of Appeal recently held that it was legal for an employer to obtain data using GPS equipment in order to check the number of kilometres actually travelled by an employee against the data provided by the employee. The court's decision was based on the fact that the employer had not engaged in remote surveillance in order to check the employee's professional performance, but rather the number of kilometres travelled.

Court finds employer breached duty to provide sufficient work and awards compensation
  • Portugal
  • 20 July 2016

In a recent judgment the Supreme Court of Justice held that an employer had demonstrated a breach of its duty to provide its employee with sufficient work, which had left him completely inactive for a number of years. The Supreme Court of Justice ordered the employer to pay the employee €50,000 as compensation for non-financial losses as a consequence of the psychological harassment it had inflicted on him.

Supreme Court decision on unlawful dismissal
  • Portugal
  • 25 May 2016

In a recent judgment, the Supreme Court of Justice held that it was unlawful to dismiss a director in the context of a business reorganisation. The court found that the director's behaviour in humiliating, threatening and disrespecting colleagues and subordinates – which formed the basis of his dismissal – was not severe enough to justify his dismissal for just cause. However, the court decided not to enforce the employee's reinstatement.

Main legislative changes to employment law
  • Portugal
  • 18 May 2016

The main recent legislative changes to Portuguese employment law include the re-establishment of the 2015 transitional rules on access to early retirement pensions; the creation of a reduced social security contribution rate for certain employers; the reinstatement of certain national holidays; and the raising of the normal age of access to retirement pensions for 2017.

New Temporary Work Regime
  • Portugal
  • 24 October 2007

The new and eagerly awaited regime on temporary work has now been approved. It regulates the licensing and operation of temporary work agencies, as well as the contractual relationships between temporary workers, temporary work agencies and user companies.

Incentives for Job Creation Prioritize Permanent Positions
  • Portugal
  • 14 March 2007

The recent State Budget Law has introduced measures to encourage companies to recruit employees on permanent contracts. However, employers often overlook other incentives and benefits which are aimed at encouraging them to employ long-term unemployed people, disabled people, first-time job seekers and other people who are at a disadvantage in the labour market.

New Mediation System for Employment Disputes
  • Portugal
  • 07 March 2007

The Labour Mediation System - the result of a protocol between the Ministry of Justice and various employers' and trade unions' associations - offers an alternative means of resolving litigation issues arising from employment relationships. A one-year trial of the system has begun in Lisbon and Oporto.

Reform of Unemployment Benefit Regime
  • Portugal
  • 24 January 2007

In line with the reforming trend towards the redefinition of social protection schemes, the legal regime for unemployment benefit has been revised. New measures affect aspects including entitlement in the event of termination by mutual agreement or dismissal with just cause, the search for a convenient position and early access to old-age pensions.

Hiring Employees: Rules and Limits
  • Portugal
  • 29 November 2006

Employers are free to choose whichever method of candidate assessment they prefer. However, the Labour Code lays down guidelines and orientations with respect to certain aspects of recruitment and employment, including the advertisement of a position, medical examinations of employees and the confidentiality of personal information.

Calculating the Probationary Period for New Employees
  • Portugal
  • 20 September 2006

The Labour Code includes a provision which clarifies the uncertainties which frequently arise in assessing the duration of the probationary period for new employees. It identifies periods during which there is no effective provision of work, defining cases where such periods count towards the probationary period and those where they interrupt and temporarily suspend it.

Restrictions on Remote Surveillance in the Workplace
  • Portugal
  • 13 September 2006

The Labour Code forbids employers from using remote surveillance technology in the workplace to monitor their employees’ professional performance. There are, however, two exceptions to this rule: the code permits the use of surveillance technology if it protects people or goods, or if specific demands inherent in the employee's activity justify its use.

Unfair Dismissal: Employers' Rights to Appeal against Reinstatement
  • Portugal
  • 26 July 2006

If an employee is found to have been unlawfully dismissed, her or she may choose between reinstatement or compensation in lieu. Until the Labour Code came into force, an employer was not allowed to object to or otherwise act against an employee's decision to return; an employee's corresponding right to increased compensation in the event of an objection remains untested in law.

Management of Employees' Personal Data
  • Portugal
  • 07 June 2006

In addition to the protection provided by the Personal Data Protection Law, the Labour Code also limits the type of data which the employer may request from the employee. Prior approval for the processing of personal data - in the administration of remuneration, for example - may be subject to a strictly limited authorization.

Amendments to the Labour Code
  • Portugal
  • 31 May 2006

Recent amendments to the Labour Code redefine employment contracts, alter the provisions relating to collective bargaining arrangements and introduce a number of changes to the regulations on mandatory arbitration, including the right of the minister of employment to order parties to begin arbitration if essential services are at stake.

Unfair Dismissal: Employers' Right to Appeal against Reinstatement
  • Portugal
  • 24 May 2006

If an employee is found to have been unlawfully dismissed, her or she may choose between reinstatement or compensation in lieu. Since the introduction of the Labour Code in 2003, an employer has been able to object to an employee's reinstatement in certain circumstances, but aspects of this right - and the employee's right to increased compensation in the event of an objection - remain untested in case law.