Changes to Código do Trabalho: What changes on May 1st?
24 de April, 2023
On April 3, Law no. 13/2023 was published in Diário da República, which provides for several changes to Código do Trabalho (henceforth, CT) as part of the so-called Agenda do Trabalho Digno.
These changes apply to issues such as remote work, dismissals, work on digital platforms, among others, and come into force on May 1st.
Remote work
In cases where the activity performed is compatible with remote work and the employer has the resources and means to do so, they can adopt this regime:
- Workers with children or dependents up to the age of 3 (already provided for previously);
- Workers with children or dependents with a disability, chronic illness or cancer, regardless of their age.
In addition, the amount of compensation to be paid to the employee for the additional expenses arising from remote work must be fixed in the employment contract or agreement for remote work. This compensation is considered a cost of the employer for tax purposes and does not constitute the employee’s income if it is equal to or less than the limit set by Ordinance (Article 168 of the CT).
Collective redundancies
The employer must notify each of the workers concerned in writing of its intention to proceed with collective redundancy. These workers are entitled to compensation corresponding to 14 days’ basic pay, and respective seniority, for each full year of seniority in the company (Article 366 of the CT).
Outsourcing ban
In cases where there has been a collective dismissal or job termination, the company may not use external services – outsourcing – to provide the same functions for the following 12 months (Article 388 of the CT).
Compensation for the end of fixed-term and uncertain contracts
When a fixed-term or uncertain employment contract expires, the employee is entitled to compensation corresponding to 24 days, instead of 18 days, of basic salary and respective seniority, for each full year of seniority with the company (Articles 344 and 345 of the CT).
Temporary employment contracts
Temporary contracts can now be renewed up to a maximum of four times (as opposed to the current six). In addition, the duration of successive temporary employment contracts for different users, with the same employer or a company in a control or group relationship, cannot exceed four years (Article 182 of the CT).
Collective bargaining
Companies will now have more benefits and incentives for collective bargaining (Article 485), particularly with regard to:
- Access to public support and funding, including European funds;
- Public procurement procedure;
- Tax incentives.
Additional work
The amount to be paid to the employee for overtime work when it exceeds 100 hours per year is higher than it was until now (Article 268 of the CT):
- 50% for the first hour or fraction thereof;
- 75% for each subsequent hour or fraction thereof on working days;
- 100% for each hour or fraction thereof on compulsory or additional weekly rest days or public holidays.
Student employment contracts
Students on vacation or on a school break can enter into an employment contract with a company, which is not subject to written form and does not depend on student worker status.
Even so, the employer must notify Social Security of the conclusion of this contract (Article 89-A of the CT).
Internship remuneration
The remuneration for professional internships will be at least 80% of the guaranteed minimum monthly salary, which in 2023 is set at €760. The value of IEFP internship grants for undergraduates will rise to €960.
Trial period
From now on, the employer must inform the employee of the duration and conditions of the trial period within a maximum of seven days. If they fail to do so, it is assumed that there is no trial period.
In cases where the trial period is 120 days or more, any termination of the contract by the company must be made 30 days in advance (Article 114 of the CT).
For young people looking for their first job or the long-term unemployed, the trial period can be reduced or even excluded, depending on whether the duration of a previous fixed-term contract with a different employer was 90 days or more.
Digital platforms
With this law, the mechanism for presuming an employment contract will be adapted to the reality of couriers working for digital home delivery platforms.
If two of the six criteria set out in Article 12-A(1)(a) to (f) of the CT are met, such as: the existence of a fixed fee for the work provided or the definition of specific rules for carrying out the same activity, the provider of the activity will be considered an employee of the company (Article 12-A).
In cases where an employment contract is considered to exist, the rules laid down in the CT that are compatible with the nature of the activity performed apply, namely the provisions on social security deductions, minimum wage, vacations, work accident regime, among others.
Father’s parental leave
The father’s compulsory parental leave will increase from 20 working days to 28 days in a row, which must be taken consecutively or in interpolated periods of at least seven days within 42 days of the child’s birth, seven of which must be consecutive and immediately after the birth.
There are also seven consecutive or interpolated days of optional leave, provided that they are taken at the same time as the mother’s initial parental leave. These days must be taken consecutively immediately after the birth (Article 43 of the CT).
Dismissal in adoption and foster care cases
Workers who are in the process of adopting or fostering a family are now entitled to time off work on presentation of justification (Article 45 of the CT).
With regard to parental leave, they can take up to 30 days during the transition and monitoring period, and are also entitled to leave to care for their child.
Bereavement and death leave
In the event of the loss of a child during pregnancy, parents are now entitled to leave of up to three consecutive days and must present their employer with a declaration from the hospital, health center or medical certificate (Article 38-A of the CT).
In the event of the death of family members, the number of days of leave has increased:
- For 20 consecutive days in the event of the death of a spouse, child or stepchild;
- For 5 consecutive days in the event of the death of other first-degree relatives.
Medical leave
The granting of sick leave will become simpler. The SNS will be able to issue sick leave for up to three days digitally and up to a limit of twice a year per worker (Article 254 of the CT).