Labor code in Portugal, what changes on October 1, 2019

The reform of part of the labor code in Portugal will have a direct impact on the labor market. Both for companies and for employees. 

This new law, enacted in official journal by the President of the Republic two weeks ago to be exact on Wednesday, September 4, 2019. It will come into effect on September 1st. October 2019.  

It is important to know that his legislative changes met with a real left-wing consensus, they were approved in Parliament only with the vote of the SP.

The trial period is doubled

For the long-term unemployed and young people looking for their first job, in both cases the trial period is extended from 90 to 180 days. It is important to know that this measure was in the initial proposal of the government, which remained in the final text.

Maximum duration of fixed-term contracts

With the enactment of this new lawFor the first time, the maximum duration of fixed-term contracts, which is currently three years, is reduced to two years. For uncertain open-ended contracts (a Portuguese peculiarity), they are reduced from the current six years to a maximum of four years.

Limitation of contract renewals

The law already limits the renewal of fixed-term contracts to a maximum of three contracts, with the implementation of the new law the renewal of contracts can not exercise the duration of the initial period of the contract.

Restriction on temporary work

The Labor Code provides for a limit of up to six renewals of temporary employment contracts. However, this rule may be suspended under the following circumstances:

• disease,
• accident,
• parental leave
• other similar situations.