PORTUGAL Trends and Developments Contributed by: Marta Afonso Pereira, Inês Albuquerque e Castro, André David and João Camilo, Eversheds Sutherland
What to Expect From Employment Law in Portugal A certain stability has been seen in employment leg - islation since the amendments to the 2023 Labour Code. Following the new political landscape after the elections of May 2025 (which gave right-wing parties greater representation in the Portuguese Parliament), some aspects of employment legislation are expected to be reviewed in the coming years. As of the date of this article, the government has announced the launch of a package of employment law amendments – of more than a hundred articles of the Labour Code – to be discussed with social part - ners. Changes are expected in the following topics: • the extension of the sectors subject to minimum services during strikes; • the acquisition of additional holiday days by employees; • the extension of the maximum duration of fixed- term contracts; • stricter rules to requalify digital platforms workers; • the qualification of fraudulent self-justified sick leave as grounds for dismissal with cause; • the return of individual bank of hours; • the payment of the holiday and Christmas allow - ances in provisional twelfths; • changes to the remote working system; and • the possible extension of the right to refuse rein - statement of an employee in the case of unfair dismissal to all categories of employees. For now, regulators have been refining the details of the amendments included in 2023, and appeal courts are busy ruling on some of the critical topics brought about by the 2023 amendments, such as platform workers’ requalification as employees, pay transpar - ency and harassment. Furthermore, social aspects such as remote work and the right to disconnect, the entry of immigrants into Portuguese territory and the use of artificial intel - ligence (AI) in the workplace are having a material impact on how employers need to adapt. The following sections will provide a high-level over - view of these hot topics.
Remote Work and Work-Life Balance: Solution or Illusion? In a fast-changing society, the search for new bal - ances has become essential. The perception and organisation of time have undergone a transforma - tion – shifting from a homogeneous and continuous concept to one that is increasingly fragmented and discontinuous. Time has become a critical variable in management, with productivity rhythms now dictated by demand and digitalisation. This shift has intensified the conflict between professional responsibilities and personal and family life. According to the 2023 “Country Health Profile” for Portugal, over 2.25 million people were living with mental health disorders in 2019 – representing 22% of the population, far above the EU average (16.7%). Anxiety disorders were the most common, affecting nearly 9%. Recognised globally as a key priority, as highlighted in the World Health Organization’s 2025 “Guidance on mental health policy and strategic action plans”, mental health is “a vital asset that should be protected and nurtured for individuals and societies to thrive” through national policy and strategic action. In the context of employment, this means recognising the central role of working time in either promoting or undermining well-being. Although the Portuguese legal framework traditionally grants protection to employees – particularly concern - ing limits on working time – labour activity is increas - ingly shaped by digitalisation and collaborative struc - tures, especially through involvement in international teams and projects spanning multiple time zones. This new reality presents additional challenges. Although there are no legal obstacles preventing employees from disconnecting after working hours, the cultural mindset – such as the idea that a “good” employee is always available – and increasing com - petition in the labour market remain powerful barriers to genuine disconnection. In this context, legislative intervention has sought to reform the (innovative) regime introduced by the 2003 Labour Code, adapting it to the demands of the “post-
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