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Labor reform? Debate “cannot be eternal,” warns minister

Portugal’s Minister of Labor, Solidarity and Social Security, Maria do Rosário Palma Ramalho, outlined the government’s focus on the upcoming 2026 budget during remarks at the seminar “CRL: Ten Years in Service of Social Dialogue,” organized by the Center for Labor Relations (CRL) in Lisbon. She emphasized the importance of a thorough discussion within the social concertation framework without the process being influenced by the budgetary debate.

“We want an in-depth discussion within social concertation, but we will neither contaminate nor be contaminated by the budgetary debate,” she stated. After the State Budget vote for next year, the proposal for changes to labor laws, regardless of agreements, will be submitted to the Assembly of the Republic.

The government’s major changes to labor law include extending the duration of fixed-term contracts, reintroducing individual time banking, lifting restrictions on external hiring post-dismissals, revising parental leave, and strengthening mandatory minimum services during strikes.

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