LUSA 02/06/2026

Lusa - Business News - Portugal: What the unions agree and disagree on regarding the labour law

Lisbon, Feb. 5, 2026 (Lusa) - On Wednesday, the Socialist-backed UGT trade union confederation submitted its promised counterproposal to revise labour legislation to the government, calling for "more transparent and effective negotiations" in the Social Dialogue.

The document comes about six months after the ministry led by Rosário Palma Ramalho presented the social partners with the draft labour law reform bill, and after the government presented the UGT with a new proposal in November, which included some concessions and new measures compared to the initial document, following the announcement of the general strike.

The Communist-backed CGTP confederation, for its part, reiterates that the government has not yet sent it any new proposal, apart from the initial one presented on 24 July, and maintains the proposals submitted to the government at the bilateral meeting held on 3 September.

From holidays to dismissals, here is a summary of the main proposals that the two unions submitted to the government as part of the discussion on the revision of labour legislation:

 

+++ Holidays +++

Both the CGTP and the UGT argue that the annual holiday period should be increased from the current 22 days to 25 working days. However, the trade union led by Mário Mourão has acknowledged that these may be reduced "in the event of the worker being absent without justification", namely "one day of holiday for one absence or two half-days", "two days of holiday for two absences or four half-days" or "three days of holiday for three or more absences or six or more half-days", according to the counterproposal submitted by the UGT to the government on Wednesday, to which Lusa had access.

 

+++ Working hours +++

Both trade union centres propose reducing the normal working week from 40 hours to 35 hours, with a maximum of seven hours per day.

 

+++ Expiry +++

The CGTP wants to revoke the expiry and supervision regime for collective bargaining, proposing that it be replaced "by a regime that ensures the continuity of collective bargaining instruments will be guaranteed until they are replaced by others, freely negotiated between the parties, ensuring that there are no conditions or constraints that limit freedom of negotiation," according to the document delivered to the Minister of Labour, Solidarity and Social Security at the bilateral meeting held on 3 September.

In turn, the UGT's counterproposal also includes changes to the expiry of fixed-term and indefinite-term employment contracts. In both cases, it wants compensation for the worker to be "corresponding to 45 days of basic pay and seniority for each full year of service", instead of the current 24 days stipulated in the Labour Code.

The UGT's proposal also includes changes regarding the survival of collective bargaining.

 

+++ Adaptability and time banks +++

The CGTP proposes to revoke the adaptability and time bank schemes.

The UGT wants the normal daily working period under the individual adaptability scheme to be increased by up to two hours, "so that the working week can reach forty-five hours, not counting overtime worked due to force majeure". The current law, in this case, allows the working week to reach 50 hours.

With regard to time banks, the trade union led by Mário Mourão considers that the government's proposal to revoke the group time bank and reinstate the individual time bank is one of the "red lines" for a possible agreement.

Nevertheless, it proposes that group time banking be approved by referendum with "60% of the workers covered", rather than the current 65%.

 

+++ Night work +++

With regard to night work, the CGTP advocates limiting the regime to "establish a maximum limit on working hours", ensuring that workers are not subject to this regime "throughout their working lives". In addition, it wants to exempt from this regime workers with children up to the age of 16, or, regardless of age, with disabilities or chronic illnesses, as well as informal carers.

The UGT, on the other hand, in cases where the adaptability regime is in force, advocates that it should not be "more than seven hours per day, on a weekly average, without prejudice to the provisions of collective labour regulations", according to the counterproposal to which Lusa had access.

It also argues that "night workers should not work more than seven hours in a 24-hour period" in activities defined by law as "involving special risks or significant physical or mental strain", which include, among others, the extractive industry or the manufacture, transport or use of explosives and pyrotechnics. In both cases mentioned above, the current law sets a limit of eight hours.

At the same time, the UGT also advocates increasing the amount payable for night work, proposing a "50% increase on the payment for equivalent work performed during the day", instead of the current 25% established by law.

 

+++ Overtime +++

As for overtime, both trade unions propose increasing overtime pay. However, while the CGTP does not present a specific amount in its proposal, the UGT wants it to be "50% for the first hour or fraction thereof and 75% for each subsequent hour or fraction thereof" on working days and "100% for each hour or fraction thereof on mandatory or complementary weekly rest days or public holidays".

 

+++ Compensation for collective dismissal +++

The CGTP wants to change the compensation scheme for termination of employment contracts due to collective dismissal, job loss or unsuitability, "setting the compensation amount at 30 days' basic pay and seniority pay for each year of service".

The UGT also advocates an increase in compensation for collective dismissal "corresponding to one month's basic salary and seniority pay for each full year of service", which "cannot be less than three months' basic salary and seniority pay".

The current law stipulates that workers are entitled to compensation corresponding to 14 days of basic pay and seniority pay for each full year of service.

 

+++ Reinstatement after unlawful dismissals +++

The UGT wants to increase the compensation in lieu of reinstatement at the employee's request, proposing that the amount to be set by the court be "between 30 and 60 days' basic salary and seniority pay for each full year or fraction of seniority", instead of the current 15 to 45 days.

As for compensation in lieu of reinstatement at the employer's request, if the court excludes reinstatement, it wants the amount to be determined by the court to increase to "between 90 and 120 days of basic pay and seniority pay for each full year or fraction of seniority", instead of the current 30 to 60 days, and that this cannot "be less than the amount corresponding to nine months of basic pay and seniority" (currently the limit is six months).

For its part, the CGTP has no proposal in this regard, but, along with the UGT, has already spoken out against the Government's proposal in this area, which proposes that the employer may ask the court to "exclude reinstatement, based on facts and circumstances that make the worker's return seriously detrimental and disruptive to the functioning of the company".

 

+++ Measures in the area of parenthood +++

Alongside the exemption from night work in certain circumstances, the CGTP has several measures aimed at parenting, namely extending the flexible regime currently provided for in the Labour Code to cover workers "who have children up to 16 years of age and informal carers", as well as limiting "the possibilities for employers to refuse to grant this regime".

The trade union led by Tiago Oliveira also wants to exempt workers with children up to the age of 12, or, regardless of age, those with disabilities or chronic illnesses, from overtime, as well as informal carers, and to exempt them from shift work in the same circumstances as those proposed for night work.

After the government signalled that it wants to introduce continuous working hours in the private sector for workers with children under 12 or, regardless of age, with disabilities, chronic illnesses or cancer, the UGT is also proposing this measure, but adds that it could also be adopted in other circumstances.

These include adoptive workers, "under the same conditions as parent workers", workers who, replacing their parents, have "a net responsibility for children under the age of 12", as well as for adoptive workers, guardians or persons "to whom judicial or administrative trust of the minor has been granted, as well as the spouse or person in a civil partnership with any of those or with a parent, provided that they live in the same household as the minor" and student workers.

It also advocates reducing the working week "by one day of the weekly working period, for workers whose normal working period is five or more days, without loss of pay" for the same circumstances.

JMF/ADB // ADB.

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