Reviewing the Labor Code is back in the political agenda and promises to bring changes relevant to the way the Portuguese organize their working time and rest. The intention of the government of Luís Montenegro with this new proposal, according to the program delivered to the Assembly of the Republic, is to soften the “degree of rigidity” of the employment legislation in force with various measures.
Purchase of vacation days: how can it work
Currently, most workers are entitled to 22 days of vacation.
SIC Notícias writes that the government’s proposal aims to open the possibility of increasing this period by acquiring additional days, with a limit to be defined between employer and employee.
This flexibility in the Labor Code can be negotiated on a case by case basis, according to the same source, depending on the agreement between worker and employer.
Flexible weekly time
Another proposal involves reducing the normal weekly working period for certain groups.
The Labor Code will be able to provide special regimes for those in the transition to the reform, for young people who study and work or for situations of greater need for balance between professional and personal life.
According to the source, in these cases, the reduction of the time will result in a proportional decrease in the salary, safeguarding the financial balance between the parties.
Hour and Teleworking Banks in Debate
The new Labor Code review proposal also provides for new rules for hours banks, an instrument already used by some companies to manage work peaks and periods of lower activity.
In addition, a differentiated regulation of teleworking is under analysis, with lighter rules for bosses and employees, explains the publication.
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Calendar for decisions
The discussion of the government program takes place in the Assembly of the Republic this Monday and Tuesday.
According to the source mentioned above, the executive of Luís Montenegro must face a rejection motion presented by the PCP, but should be spoiled due to the position of the PS and arrival.
The Labor Code review is part of a broader reform plan to streamline the national economy and ensure budgetary sustainability, even with a deficit forecast for the coming years.
Budget impact and prudence
The government argues that the flexibility of the Labor Code, including the reduction of IRS and IRC, will contribute to economic growth.
However, it admits that this effect should be considered with caution not to compromise the budget discipline.
It also states the same source as Banco de Portugal, the Public Finance Council and the European Commission point to budget balances close to balance, although moderate deficits may emerge in 2025 and 2026.
BALANCE BETWEEN LIFE AND WORK
The new proposal to review the Labor Code proposes to respond to changes in workers’ needs and new work dynamics, from teleworking to schedule flexibility.
According to, the objective is to “reinforce the balance between work and family life” of workers.
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