Half of the amount of the holiday and Christmas bonuses that have to be paid by employers will continue, as a rule, to be paid in twelfths, throughout the year.
For 2017 the minimum monthly wage was increased to € 557,00. The meal allowance for public sector workers is fixed at the daily amount of € 4,52 from January 1, which will also impact the income tax of the private sector. The age for retirement in 2017 is set at 66 years and 3 months (one additional month when compared with 2016).
A recent legal act was approved and entered into force in Portugal introducing substantial changes to the existing legal rules on temporary agency work, “employee lease”, safety and health at work and liability for the infringement of labour standards regarding independent service subcontracting. The preamble of the new law states that these measures are meant to “fight modern-day means of forced labour”. In general terms, the new rules have established that all corporate bodies involved in temporary manpower agreements (temporary agency work), in service subcontracting and in temporary “employee lease” are personally and directly liability (as well as all entities that are in a control, group or reciprocal interest relationships with same entities) together with the actual employer company for all duties and credits that impede the employer towards employees, in any of the above referred cases (temporary agency work, “employee lease” and independent service subcontracting). The same responsibility is also extended to all directors, managers or board members of same entities.
After having been increased to 40 weekly hours in the context of the austerity measures, the maximum weekly working hours for civil servants has been reduced back to the original 35 hours, as of the beginning of July 2016. Since general employment law working hours are set at 40 hours/week, unions are claiming that the reduction to the 35 hour threshold should be extended to other employees, who also work for public entities, but are not benefiting from the civil servant legal regime.
In a recent decision, the Coimbra Appeal Court confirmed that the initial employment duration period, during which an employee is exclusively subject to training for the position, should not count towards the initial contract trial period, during which either party may freely terminate the employment relationship.
The following extension decrees were recently issued on existing collective agreements that determine that the provisions of these agreements are thereafter applicable to all employees and employers within a specific business area or industry: i) Provisions contained in the collective agreement between Easyjet Airline (Portuguese Branch) and the Civil Aviation Flight Union (SNPVAC) are extended on the mainland territory to the employment relationships between the same employer and non-unionized cabin crew employees. ii) Provisions in the collective agreement between the Association of Food Distributors (ADIPA) and food retailing Unions are extended to all employers engaged in food product retailing, including drinks, fruit, vegetables and seeds, and employees at their service (regardless of their affiliation).
The Supreme Court recently decided that the real estate special payment guarantee that confers preferential payment to employee credits arising from the employment agreement does not cover buildings under construction by building companies and their employee credits (eg. salaries of employees working on the building site).
i) Reinstatement of public holidays – Law no. 8/2016, of April 1, has reinstated, effective as of this year, the following public holidays: Corpus Christi (movable), Implantation of the Republic (October 5), All Saints’ Day (November 1) and Restoration of Independence (December 1). All four indicated holidays had been suppressed (or suspended) from the 2013 […]
The Constitutional Court ruled that article 186-O, no. 1, of the Labour Procedure Code, is not deemed unconstitutional when interpreted as follows: in a case under which the recognition of an employment contract is claimed – within the special lawsuit procedure, initiated by the public prosecutor services, on the basis of reports provided by the […]
The eligibility to apply for an early retirement pension now depends on the beneficiary being at least (i) 60 years of age and having, at least, (ii) 40 years of relevant remuneration registration (and payment of social security – monthly contributions over same remuneration). Also, granting early retirement pensions is now subject to prior information […]