The government approved a draft for a “comprehensive reform” of labor legislation, named ‘Trabalho XXI’, in a Cabinet meeting last Thursday. This legislation will be debated and negotiated with social partners, intending to revise “more than a hundred articles of the Labor Code.”
The purpose of the ‘Trabalho XXI’ reform is to make labor regimes “more flexible,” aiming to “increase the competitiveness of the economy and promote corporate productivity,” as stated by the Minister of Labor, Solidarity, and Social Security, Maria do Rosário Palma Ramalho.
But what exactly will change?
- Government aims to eliminate leave for gestational mourning? Minister clarifies
Initially, the government announced plans to revoke the leave for gestational mourning, which allows mothers three days off work due to pregnancy termination.
The government intends to abolish the leave for gestational mourning, currently three days without loss of rights, by integrating it into the leave regime for pregnancy termination and family assistance.
Lusa | 15:46 – 25/07/2025
This Friday, however, the Minister’s office clarified that the government does not intend to eliminate the leave for gestational mourning, ensuring that all expectant mothers “maintain and even gain more rights” within the reform of labor legislation.
“In the event of pregnancy termination, the worker will always be entitled to a leave of 14 to 30 days, instead of the current 3 days. The other parent will also be entitled to a leave of up to 15 days, unlike the current 3 days,” confirmed the Ministry of Labor, Solidarity, and Social Security in a statement.
The Minister’s office clarified today that the government does not plan to eliminate the leave for gestational mourning, ensuring all expectant mothers “retain and gain more rights” in the proposed labor law reform.
Lusa | 23:58 – 25/07/2025
- Government wants fathers to take 14 consecutive days off after birth
One aspect of the draft presented by the government relates to changes in the paternal leave law. It proposes that fathers must take 28 days of parental leave, consecutively or intermittently, within 42 days following the child’s birth, with 14 consecutive days immediately following the birth.
The government wants to introduce changes to the exclusive paternal leave, requiring fathers to take 14 consecutive days immediately after their child’s birth, based on the draft submitted to social partners, as reported by Lusa.
Lusa | 14:44 – 25/07/2025
- Parental leave can extend to six months with shared periods
Under the proposed changes by the government, the initial parental leave can last six months if, after the mandatory 120 days “which can be shared between parents,” they opt for an additional 60 days, optional, “shared equally”.
The current Labor Code already permits the initial parental leave to extend to 180 days if parents choose to take it for 150 consecutive days and “if each parent takes either a consecutive 30-day period exclusively, or two consecutive 15-day periods, after the mother’s compulsory leave.”
The initial parental leave, due to a child’s birth, can last up to six months if, after the required 120 days, the two parents opt for an additional 60 days shared period, according to the government’s proposal.
Lusa | 16:40 – 25/07/2025
- Government wants fraudulent health declarations to result in dismissal
This government proposal provides that “submitting a medical statement or a self-declaration of illness with fraudulent intent” constitutes a “false declaration for just cause dismissal”.
The government wants fraudulent self-declarations of illness to result in dismissal with just cause, according to the draft submitted to social partners, as accessed by Lusa.
Lusa | 13:13 – 25/07/2025
- Government wants the end of the 180-day trial period for first jobs
The government also plans to remove from the Labor Code the clause requiring that indefinite contracts have a 180-day trial period for workers “seeking their first job and the long-term unemployed”.
The government wants workers with open-ended contracts who are looking for their first job or are long-term unemployed to no longer be subject to a 180-day trial period.
Lusa | 17:06 – 25/07/2025
- Food supply may become covered by minimum services
In addition to “childcare, elderly, sick, and disabled services” – already mentioned Thursday by the Minister of Labor, and including, for example, nurseries and nursing homes – the government also intends to extend “private security services for essential goods or equipment” and food supply to the provision of “indispensable” minimum services in the event of a strike and in the context of “addressing unavoidable social needs”.
The draft labor law reform plans to include food supply and “private security services for essential goods or equipment” in sectors that will be covered by minimum services in the event of a strike.
Lusa | 15:16 – 25/07/2025
- Government wants to reduce mandatory training hours in microenterprises
Finally, according to the draft presented, the government wants to halve the continuous training hours of companies, intending that they become 20 hours per year (currently 40 hours) for microenterprises. This applies to companies employing fewer than 10 people with an annual turnover or total annual balance not exceeding two million euros.
The government wants to adjust the continuous training hours for companies, planning to reduce them to 20 hours annually for microenterprises, according to the draft submitted to social partners, accessed by Lusa.
Lusa | 16:34 – 25/07/2025
