The Government approved the “Trabalho XXI” labour reform proposal in the Council of Ministers and sent it to Parliament for discussion, after several months of negotiations with the social partners. Although changes were introduced throughout the process, no full agreement was reached with the UGT trade union federation.
The proposal maintains some of the most controversial changes, namely the extension of the duration of fixed-term contracts to three years for contracts with a defined term and five years for contracts with an uncertain term. The Executive also intends to allow temporary contracts in situations of officially declared calamity.
Another central measure is the return of the individual time bank, now called the “time bank by agreement”, which depends on a direct agreement between the worker and the employer.
In cases of unlawful dismissal, the Government wants to allow all companies to ask the court to rule out the worker’s reinstatement, while, in return, strengthening the minimum compensation to be paid.
The use of outsourcing after collective redundancies is also set to change, with the prohibition period being reduced from 12 to 6 months and limited to the company’s core functions.
In the area of parenthood and maternity protection, the proposal includes measures related to flexible working hours, continuous working days and the organisation of working time for employees with minor children. Among the new measures is the possibility of requiring a periodic medical declaration in order to maintain breastfeeding leave, although this still depends on the final wording of the bill and the parliamentary debate.
The bill also provides for changes to the right to disconnect, allowing contacts outside working hours as long as they do not imply an obligation to respond immediately.
In professional training, the Government proposes reducing the mandatory minimum to 30 hours per year in micro-enterprises, while maintaining the 40-hour requirement for other companies.
Although the Executive says it has accepted several proposals put forward by the UGT, the trade union federation continues to challenge issues related to precarious employment, dismissals and the organisation of working time.
The proposal will now be debated and voted on in the Assembly of the Republic, where it may still undergo changes before final approval.
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