New labour law in Portugal



BY The Portugal News/ LUSA
Portugal’s new labour legislation has passed through parliament, been promulgated by the president and comes into force on 1 August.

Banks of hours, 50 percent cuts in overtime payments, fewer public holidays and no extra holidays for workers without absences are some of the main alterations.

The new law allows for workers to do up to two hours extra work a day, up to a maximum of 150 hours a year. Group banks cover an entire group, rather than just one individual and the hours are used on account.
The first hour of overtime will be paid at 25 percent more than normal, instead of the current 50 percent and 37.5 percent for further hours, instead of the current 75 percent.

If the overtime is on a weekend or public holiday, the worker receives an extra 50 percent rather than the 100% up until now.

Also overtime will no longer give the worker the right to an extra 15 minutes time off for every hour worked.

Two religious and two civil public holidays disappear: Corpus Christi (a holiday with no fixed date) 15 August, 5 October and 1 December.

If firms decide to close on a Monday or Friday because of a public holiday on the Tuesday or Thursday, this day will be discounted from workers’ holidays even if they do not agree with the closure.

Elimination of extra days’ holidays for workers who were not absent the previous year, meaning paid holidays are therefore reduced from 25 to 22 days a year.

Easier dismissal with companies having to pay 20 days wages for every year of service and the base salary cannot be higher than 20 minimum salaries.

Employers can dismiss workers when their post disappears or when they cannot adapt to new conditions.