PORTUGAL: Annual Update – Expected Labour Law Changes in 2017

Working Hours

Proposed reduction of weekly working hours:  The proposal, which is being discussed, is to reduce the 40 hour working week to 35 hours.

Action required:  None at present, but keep abreast of legal developments.

Term Contracts

Proposal to limit employers’ ability to use term contracts:  Amendments to the ‘term contract’ (or fixed term contract) rules are being discussed. The amendments will essentially limit employers’ ability to hire staff on term contracts (as opposed to indefinite term contracts). Further information is not yet available.

Changes are expected in 2017.

Action required:  None at present, but keep abreast of legal developments.

Temporary Work Regime

Potential changes to the Temporary Work Regime rules:  Changes to the Portuguese Temporary Work Regime are being discussed. Under the Regime, temporary employment agencies hire workers and supply them to end-user companies. The intent is to introduce stricter rules, to prevent businesses using temporary contracts to source permanent needs.

Action required:  None at present, but keep abreast of legal developments.

Minimum Wages

Minimum wage increase.
The monthly minimum wage is expected to reach €557 in 2017. The government plans to increase this to €600 by 2019.

Action required: None at present, but ensure payroll practices are adjusted (if relevant) when the new rate applies.