Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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New CBA Regulations for 2022 (and Beyond?)

Proposed Bill or Initiative

Authors: David Carvalho Martins, Partner and Head of Employment, and Tiago Sequeira Mousinho – DCM | Littler

The government’s “Decent Work Agenda” (Agenda do Trabalho Digno) seems to have its greatest impact on collective bargaining regulations. Employers and employees should be aware of the many implications that may arise from the – soon to be published – legislation: First, a CBA may be applicable to quasi-dependent workers; therefore, a large category of service providers (economically dependent) may benefit from an eventually applicable CBA. The DWA also provides for the “similar” conditions for representation of such quasi-dependent workers. “Outsourcing employees” may benefit from the applicable CBA at the company where they are providing their services. Following this perspective, companies may have an applicable CBA without any employee being a member of a trade union. New economical and tax incentives, as well as public procurement benefits programs will soon enter into force for companies/employers who wish to apply, or to celebrate a CBA. Finally, arbitration regime (to an arbitration court) may be applicable to discuss the tenets or objective grounds of notice for termination regarding CBAs.

The Portuguese legislator seems to reinforce the legal regime on CBA regulations, as well as on employee representation. This may challenge, however, EU and Portuguese framework on competition (anti-trust) law, namely on price-fixing prohibitions and cartel-like scenarios that may arise. We will monitor and report on any related developments.

DWA and Digital Labor Markets

Proposed Bill or Initiative

Authors: David Carvalho Martins, Partner and Head of Employment, and Tiago Sequeira Mousinho – DCM | Littler

The government’s “Decent Work Agenda” (Agenda do Trabalho Digno) is set to be enacted in July/August and is considered to be the focus of 2022 (so far). One of the many measures to implement addresses the impact of algorithms on labor markets. The DWA settled the presumption that an employment contract exists with a platform operator when there is evidence of a relationship between the platform and the activity provider, as well as between the activity provider and the clients. The DWA also provides for specific duty of information and transparency towards the ACT (Portuguese Authority for Working Conditions), employees and their representatives, about the criteria of algorithms and mechanisms of artificial intelligence used.

On the one hand, the idea is to facilitate the (re)qualification of employment contracts. On the other hand, it is intended to reduce information inequalities in the employment relationship, allowing the employee, in the same way, to know whether possible personal data may or may not be processed (e.g., by instruments, equipment and systems).

Temporary Work

Proposed Bill or Initiative

Authors: David Carvalho Martins, Partner and Head of Employment, and Tiago Sequeira Mousinho – DCM | Littler

The government’s “Decent Work Agenda” (Agenda do Trabalho Digno) provides for specific rules on temporary work, including setting limits on the regime. Employees, temporary work agencies and users should be aware of the new framework to be enacted in July/August. Amendments to the temporary work chapter of the Portuguese Labor Code shall include: (i) the rules that prevent succession of use contracts also apply to companies of the same group; (ii) integration of employees into the user company when the worker has been assigned by an unlicensed temporary work agency (ETT); (iii) after four years of temporary assignments by ETT or another of the same group, ETTs are obliged to integrate workers into their staff; and (iv) maximum number of renewals of temporary work contracts is reduced from six to four contracts.

Decent Work Agenda and Work-Life Balance

Proposed Bill or Initiative

Authors: David Carvalho Martins, Partner and Head of Employment, and Tiago Sequeira Mousinho – DCM | Littler

The government’s “Decent Work Agenda” (Agenda do Trabalho Digno) provides for new rules on work-life balance. Among other proposals, the DWA seeks to amend the Portuguese Labor Code with respect to leaves, flextime, and adoption leave. The DWA seeks to increase the amount of leave to allow for more sharing between the two parents and doubling the leave time when it is taken part-time. The flextime regime would be expanded for workers with children between three and six years old. Moreover, in adoption situations, the worker would have access to an exclusive leave and allowance.

The legislator has delivered on its promise to progressively adapt the needs inherent in balancing work life and family time.