Labour law: a lot is going to change - guide to the known novelties

Parliament has been voting on several amendments to the Labour Code in the speciality of the Decent Work Agenda. The whole dossier of changes to the labour law should be concluded by the end of January, with the entry into force of the new labour rules scheduled for the beginning of this year.
The proposal of the socialist government that amends labour legislation, within the scope of the Decent Work Agenda, entered Parliament in June 2022, without the agreement of the Social Concertation, having been approved in general terms on 8 July 20222 with votes in favour by the PS, abstention by the PSD, Chega, BE, PAN and Livre and against by the IL and PCP. Discussion on the specifics began on 29 November 2022.

Telework: employment contract to fix value of extra expenses

The approved proposal foresees the fixation of the value of extra expenses in contracts for telework. According to the new norm, "the individual employment contract and the collective employment contract must fix the amount of compensation due to the worker for additional expenses".
"In the absence of agreement between the parties on a fixed amount", additional expenses are considered to be "those corresponding to the acquisition of goods and or services that the employee did not have before the conclusion of the agreement" as well as "those determined by comparison with the homologous expenses of the employee".

• Payment of telework without proof of payment is taxed under IRS

The compensation paid by the company to employees for increased costs due to teleworking will always be taxed under IRS when there is no invoice proving the effective increase of the expense. The news is advanced by DN/Dinheiro Vivo after questions were raised with the Tax Authority (AT).
According to the Tax Authorities, "the payment of an amount by way of cash compensation to meet increased costs due to teleworking, without there being a direct connection with the actual additional expenses on the part of the worker, determines IRS taxation".
Only "reimbursements of additional expenses incurred by the employee, in a telework regime, when duly proven and ascertained" are exempt from tax.

Temporary contracts with a limit of four renewals

The reduction of the maximum number of renewals of temporary fixed-term work contracts from the current six to four was approved. A proposal from the PS (Socialist Party of Portugal) was also given the green light, foreseeing that after four years of temporary assignments by temporary work companies or other companies from the same group, these companies are obliged to incorporate the workers into their permanent staff.

MEPs approved an increase in the value of overtime from 100 hours per year

MPs approved the increase in the value of overtime from 100 annual hours.  The value of overtime increases from 25% to 50% in the first hour or fraction thereof, from 37.5% to 75% per subsequent hour or fraction thereof, on a working day, and from 50% to 100% for each hour or fraction thereof, on a compulsory or complementary weekly rest day or on a public holiday.
Companies prevented from outsourcing 1 year after collective dismissal
With this amendment to the Labour Code, companies will be prevented from outsourcing (external hiring) in the 12 months following collective dismissals or layoffs. According to the proposal, the violation of the rule "constitutes a very serious offence imputable to the beneficiary of the acquisition of services".

Father's parental leave increases to 28 days

Mandatory parental leave of the father increases from the current 20 working days to 28 days consecutive or interpolated. "It is mandatory for fathers to take 28 days of parental leave, consecutive or interspersed, in the 42 days following the birth of the child, five of which must be taken consecutively immediately afterwards", states the approved norm.

After the 28-day leave, the father is entitled to seven days leave, consecutive or interpolated (instead of the current five working days), provided that they are taken simultaneously with the mother's initial parental leave.

Presumption of employment contract in digital platforms

The rule on the presumption of an employment contract in digital platforms such as Uber or Glovo was approved at the fourth attempt and will apply to the sector of paid individual passenger transport in uncharacterised vehicles (EDV).

The proposal provides that the existence of an employment contract is presumed "when, in the relationship between the activity provider and the digital platform, some" characteristics are verified", no longer expressly referring to intermediate operators.

According to the initiative, the existence of an employment contract may be recognised when the digital platform operator fixes a remuneration, controls and supervises the provision of the activity, restricts the autonomy of the activity provider regarding work organisation, especially as to the choice of working hours or periods of absence, among other criteria

Companies prevented from substituting temporary workers with green receipts

Companies will no longer be able to hire green contract workers to replace a temporary worker in the same post or professional activity. The Labour Code already provides that, in the case of the completion of the maximum duration of a temporary contract, "the succession in the same job of a temporary worker or of a worker with a fixed-term contract is prohibited before a period equal to one third of the duration of the contract has elapsed, including renewals".

With the approved proposal, this restriction is extended to green contracts (contracts for the provision of services) and also to the same "professional activity".

Workers may no longer waive credits due at the end of the contract

The proposal approved ends the possibility for workers to abdicate credits due to them, such as holiday or Christmas subsidies, when they are dismissed or their contract ends. According to the new rule, the worker's credits arising from the employment contract, its breach or termination "are not susceptible of extinction by means of abdicative remission".