The changes to labor legislation, provided for in the Decent Work Agenda, come into force this Monday, Labor Day, after a long discussion in Parliament and without the diploma having reached an agreement in the Social Dialogue.

The legislation was published in the Diário da República on April 3, after being approved in parliament on February 10 in a final global vote, with favorable votes only from the PS, abstention from the PSD, Chega, PAN and Livre and votes in against BE, PCP and IL.

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The President of the Republic, Marcelo Rebelo de Sousa, promulgated the decree law on March 22, but expressed doubts about the effects of some solutions which, according to him, “may have, in the labor market, an effect contrary to that supposedly intended.”

The employer federations point out that the diploma is unconstitutional, while the trade union federations consider that the measures are insufficient to guarantee the rights of workers.

According to the government, the Decent Work Agenda is based on combating precariousness, valuing young people in the labor marketpromoting the reconciliation of professional, personal and family life and promoting collective bargaining.

Extension of telework

The right to telework is extended to parents with children with disabilities, chronic illnesses or cancer, regardless of age.

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According to the new article 166-A of the Labor Code, “the worker with a child under three years of age or, whatever their age, with a disability, chronic illness or oncological disease who lives with them at the same table and room, has right to carry out the activity under a teleworking regime, when this is compatible with the activity carried out and the employer has the resources and means to do so.

Teleworking expenses established in the contract

The diploma now provides for the setting of the value of additional expenses in the contracts for the provision of teleworking.

“The individual work contract and the collective work agreement must establish, when entering into the agreement for the provision of telework, the amount of compensation owed to the worker for additional expenses,” defines the law.

The tax and tax exemption limit for teleworking expenses has not yet been defined by government decree.

Requests for registrations of up to three days through the SNS24

Leaves of up to three days can now be processed through the digital service of the National Health Service (SNS24), by self-declaration of illness, with a limit of two per year.

“The accreditation of the worker’s disease situation is made by declaration of a hospital establishment, or health center, or digital service of the National Health Service, or digital service of the Autonomous Health Services of the Autonomous Communities, or by means of a certificate doctor”, defines labor law.

The declaration “is made by self-declaration of illness, under oath, which can only be done when the worker’s illness situation does not exceed three consecutive days, with a limit of twice a year.”

Forgiveness of salary credits only in the courts

With the entry into force of the legislation, the possibility for workers to waive salary credits at the end of the contract will only be possible through a judicial transaction.

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The credit, which expires one year after the termination of the employment contract, “is not subject to termination by way of abdicative remission, except for a judicial transaction,” the new standard establishes.

Increase in severance pay

The value of compensation for collective dismissals and termination of employment will go from the current 12 days of base salary and seniority per year to 14 days per year, with the new legislation.

The increase in compensation will only apply to contracts entered into after the entry into force of the law, without retroactive effects.

For fixed-term contracts, the compensation amount is now 24 days (instead of 18 days) of base salary and seniority pay for each full year of work.

End of Employment Compensation Fund Discounts

Companies no longer deduct around 1% of the salaries of workers hired since 2013 for the Caja de Compensación del Trabajo (FCT), a fund created at the time to pay part of the severance pay.

The FCT has accumulated more than 600 million euros and the way to mobilize this amount is still being discussed in the Social Concert, with training and support for housing as the destination.

Companies have to give information about algorithms

Companies will have to start informing workers’ councils about decisions based on algorithms, that is, about accessing and maintaining employment.

The workers’ council now has the right to information on “the parameters, criteria, rules and instructions on which the algorithms or other artificial intelligence systems that affect decision-making on access to and maintenance of employment are based, as well as the working conditions, including preparation. profiles and control of professional activity”.

The value of overtime increases from 100 hours per year

The value of overtime from 100 hours per year increases from 25% to 50% in the first hour or fraction, from 37.5% to 75% per hour or subsequent fraction, on a business day, and from 50% to 100% for each hour or fraction thereof, on a mandatory or complementary weekly rest day, or on a holiday.

This rule comes into force this Monday, but employer and union associations have a transitional period, until January 1, 2024, to modify collective agreements.

Companies that laid off prevented a year from resorting to outsourcing

Companies are prevented from using outsourcing (external contracting) in the 12 months following the collective dismissals or termination of the employment contract.

“It is not allowed to resort to the acquisition of external services from a third party to satisfy needs that were insured by a worker whose contract has ended in the previous 12 months due to collective dismissal or termination of employment,” the law establishes.

Temporary contracts with a limit of four renewals

With the entry into force of the law, the maximum number of renewals of fixed-term temporary employment contracts is increased from the current six to four.

The law also establishes that, after four years of temporary assignments by temporary work companies or another of the same group, these companies are obliged to integrate the workers into the workforce.

The father’s parental leave becomes 28 consecutive or interpolated days

The father’s mandatory parental leave goes from the current 20 business days to 28 consecutive or interpolated days which, according to some lawyers, may translate, in some cases, into fewer days of leave.

“It is mandatory for the father to enjoy a parental leave of 28 days, consecutive or interpolated, in the 42 days following the birth of the child, five of which are enjoyed consecutively immediately after the child”, establishes the rule.

Presumption of contract on digital platforms

The labor changes provide for the presumption of an employment contract between operators and digital platforms, such as Uber or Glovo, which will apply to the individual transport sector and passenger payment in uncharacterized vehicles (TVDE).

The existence of an employment contract is presumed “when certain” characteristics are verified in the relationship between the provider of the activity and the digital platform, leaving the reference to intermediary operators unexpressed.

However, the law defines that “the digital platform may also allege that the activity is carried out before a natural or legal person that acts as an intermediary of the digital platform” and in these situations the presumption of contract applies “it is up to the court to determine who is the employer?

Undeclared work can be a crime

The law provides for the penalization of employers who do not declare the income of workers to Social Security within the six months following the start of the contract, and this rule may include domestic work.

This is an article that will be included in the General Tax Offenses Regime, which provides that “employers who do not notify Social Security of the admission of workers under the terms provided in sections 1 to 3 of article 29 of the Code of Contributory Regimes of the Social Security System (…), within the period of six months following the end of the legally established period, are penalized with the penalties provided for in section 1 of article 105”.

In other words, these companies can be sentenced to prison terms of up to three years or a fine of up to 360 days.