Headlines
Portugal launches labour reform criticised by unions
Published by Global Banking and Finance Review
Posted on September 11, 2025
Global Banking and Finance Review
Company
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Published by Global Banking and Finance Review
Posted on September 11, 2025
By Sergio Goncalves
LISBON (Reuters) -Portugal's minority centre-right government has begun a major overhaul of labour laws to boost competitiveness by making dismissals easier and working hours more flexible, a move criticised by unions who said it contravenes workers' rights.
The reform seeks to change more than 100 articles of the labour code, which it says is "anchored in traditional work models and struggles to meet the challenges of the digital age".
Its main goal is to boost business productivity. Despite a slow improvement in recent years, Portugal still lags well behind the European Union average due to structural weaknesses such as lower educational qualifications, according to reports by the National Productivity Board.
The reform process started with talks with unions and employers, a mandatory step before the cabinet approves a final bill, although it can still legislate if they fail to reach agreement.
Labour Minister Maria do Rosario Ramalho said late on Wednesday that negotiations should be thorough due to the project's scope and complexity, but added the government would not extend them indefinitely.
The plan envisions easing just-cause dismissals in small and medium businesses by removing the obligation to present evidence at the employee's request or hear the employee's witnesses.
In the case of illegal dismissals, companies could ask courts to deny reinstatement if the worker's return would seriously disrupt operations.
The bill also seeks to lift limits on outsourcing.
Companies could create "individual time banks" through which employees may work up to two more hours per day on top of the standard eight hours, with an annual cap of 150 hours.
Portugal's two main labour unions oppose the reform as "an affront to workers" and have not ruled out a general strike if the government presses ahead.
Once approved, the bill will be sent to parliament and is expected to pass with the votes of far-right Chega, the largest opposition party, as the Socialists oppose it.
(Reporting by Sergio GoncalvesEditing by David Latona and Gareth Jones)