“The proposed amendments to the Labor Code, which will undergo discussion, negotiation, and voting, can truly be seen as a Labor Reform.
This Reform aims to address the labor changes introduced in 2019 and 2023 and extend further through a series of measures designed to mitigate labor conflicts, recognized by workers and employers alike, which the current Government seems to consider.
While the proposed Reform is not revolutionary, it signals a clear possibility of balancing business competitiveness and labor modernization, granting real rights to workers.
One of the significant and divisive issues in contemporary society concerns family reconciliation. It is widely acknowledged that a central challenge of our time is balancing professional and family life. Enhancing parental leave to be more adaptable to family realities is not just a sentimental achievement—it’s a genuine investment in the nation’s future. The proposed extension allows parental leave to last up to six months (equivalent to 180 days), provided the two parents opt for an additional 60 days in a shared regime after the mandatory 120 days.
Along with the extension, remuneration changes will occur. During the first 120 days of leave, the allowance will still equal 100% of the reference salary. With the proposed changes, the allowance will mostly continue to equate to 80% of the salary, increasing to 90% when each parent takes at least 30 consecutive days or two periods of 15 consecutive days. These changes aim to enhance both the duration and compensation of parental leave. Involved parents lead to more secure children, stable families, and long-term productivity. By making this right more flexible and robust, Portugal aligns itself closer with practices in advanced European countries, especially in Northern Europe. Although this is a beneficial and bold change, it remains under-discussed.
Over the past years, thousands of digital platform workers have lived in legal limbo without contracts, social protection, or safety nets.
The new law acknowledges that these workers often depend on algorithms and daily demands. Providing them with legal framework and protection represents a historic step against invisible precariousness. This is another “left-wing” measure proposed by a “management” government.
The new law also introduces a concept associated with holiday flexibility. Though it may seem trivial, it should be viewed as a shift in mindset, recognizing rest as essential to workers’ physical and mental health. Workers can now “buy” up to 2 additional vacation days each year (either by advancing or extending their vacation period) in exchange for forfeiting payment for those days.
For young individuals, less waiting and more opportunity. Allowing two-year term contracts for those seeking their first job is a change that will stimulate hiring, reduce risk for companies, and offer initial stability for young people. This initial stability is even more significant considering the proposal to end the 180-day trial period for young people searching for their first job, reducing it to 90 days. This shortens the period of uncertainty and clarifies that the trial phase is not an excuse to leave someone in limbo for half a year. It serves as another management tool for companies and creates new opportunities for young individuals.
Although this Labor Reform could go further, denying the benefits it brings to all and acknowledging the mentioned measures as true victories for workers would be dishonest or an ideological stance unable to adapt to the future and modernization.”
