Within the scope of the Decent Work Agenda and after months of public debate, in general, the new Labor Code comes into force on 1 May
In Portugal, public and private entities are governed by the General Labor Law which, after months of public debate, was published. Law n. º 13/2023 of April 3, amends the Labor Code and related legislation, within the framework of the decent work agenda. What are the main changes?
For companies:
- Collective dismissal compensation processes will be more expensive.
- Additional work from 100 hours a year doubles its value.
- Increase in compensation for expiry of a fixed-term employment contract
- After terminating contracts, you will not be able to use outsourcing services for a period of 12 months to meet the needs of entities, due to redundancies
- Work on platforms is now regulated
- Temporary employment contracts with a maximum limit of 4 renewals
For workers
- Tax exemption with telework expenses
- Increased father’s parental leave period to 28 days
- Extending the right to telework to parents with children with chronic illness, disability, or oncology
- In cases where the contract is terminated, workers cannot waive credits such as allowances, overtime, or training hours.
- Death leave extended to 20 days
- Professional internships are mandatorily remunerated with a minimum value of 80% of the National Minimum Wage
This legislation comes into force on May 1, except for some measures related to the expiry of collective agreements, which are in force from the day following their publication.
