The government approved a comprehensive reform of labor legislation today in the form of a draft proposal set to be detailed to social partners, announced António Leitão Amaro, the Minister of State, at a press conference following the Council of Ministers in Lisbon.
This reform, named “Trabalho XXI,” aims to enhance flexibility in rigid labor regimes to boost the competitiveness of the economy and improve corporate productivity, emphasized the Minister of Labor, Solidarity and Social Security. It aims to honor workers through merit, stimulate employment, particularly among youth, and invigorate collective bargaining.
“There are 30 key topics,” indicated Maria do Rosário Palma Ramalho, noting that the reform includes commencing the transposition of two European directives—one on adequate minimum wages in the EU and another on working conditions in digital platforms—and modernizes the Labor Code, revisiting over 100 articles, alongside revising nine complementary legal statutes of the Labor Code.
The official refrained from specifying which measures are involved, asserting that the government places significant value on social dialogue, with measures to be discussed in detail with social partners this afternoon. She highlighted that this draft proposal serves as a starting point for negotiations.
However, she assured that it encompasses all measures in the government’s program for this area, referencing changes to the strike law, especially regarding minimum services in essential sectors, the option to purchase vacation days, the possibility for workers to choose between receiving vacation and Christmas bonuses in twelfths or the traditional method, and the necessity to simplify various systems such as parental leave, telework, work time organization, establishment transfers, ‘lay-off,’ and proceedings.
Addressing questions on changes to the strike law and vacation-related changes, the minister guaranteed that the proposed measures “do not infringe upon rights to vacations or their associated benefits, nor the right to strike.”
Regarding strike law changes, she reiterated that the aim is to balance this right with the need to respect other fundamental rights.
The Minister of Labor, Solidarity and Social Security also stated that these changes result partly from “multiple intervention requests” by social partners on “various matters” and the government’s assessment that the current system is “excessively rigid and rooted in a very traditional model of labor relations, not aligned with the 21st century or the digital labor era.” This also fulfills the tripartite agreement on wage appreciation and economic growth for 2025-2028 signed in October.
