Portugal: Legal action for the recognition of the existence of employment contracts – extension of scope

Initially only targeting “fake” independent contracting, this mechanism (which consists of a public prosecution lawsuit following Labour Authority [“Autoridade para as Condições do Trabalho” (ACT)] down raids, that identify signs of possible employment relationship formally structured as non-employment contracting), has now been extended to cover any cases where employment contract features are found by the authority, namely “fake” internships or volunteer work.

Additionally, this mechanism now allows the Public Prosecutor (“Ministério Público”) to initiate injunction judicial measures and request dismissal suspension orders to be issued by courts whenever the relevant relationship is terminated (by initiative of the alleged employer) after the Labour Authority has notified same alleged employer to recognize the existing contract as an employment relationship.

This process of recognition is initiated by the ACT and promoted before the labour courts by the Public Prosecutor.

For more information, please contact Morais Leitão, Galvão Teles, Soares da Silva & Associados our affiliated member firm in Portugal.
This entry was posted in Impending Changes of Legislation on .