PORTUGAL Trends and Developments Contributed by: Marta Afonso Pereira, Inês Albuquerque e Castro, André David and João Camilo, Eversheds Sutherland
with the acts or facts surrounding the harassment claim (except if there is a malicious purpose); • a disciplinary sanction applied to the claimant or witnesses in a harassment claim is deemed abu - sive; and • a presumption of an unfair disciplinary sanction (regardless of the conduct originating it) is applied to a claimant of harassment or witnesses in har - assment cases up to one year after the claim. The recognition of moral harassment by a court allows the employee to terminate their contract with cause, and the employer may be liable for the payment of a fine, criminal liability (in limited cases), responsibility for damages and employment-related diseases. The Impact of AI on Labour Relations The rise of AI and other digital tools has significant - ly reshaped labour relations. This shift has required companies and employees to adapt rapidly to tech - nologies such as apps, electronic devices and AI systems, while regulation evolves to address the new challenges. These developments bring both opportunities and risks. On one hand, AI enhances management through tools that monitor productivity and employee behav - iour. On the other, increased oversight raises concerns about privacy, excessive surveillance and declining trust. Moreover, companies also face greater expo - sure to cyber threats due to the growing value of per - sonal data processed through AI systems. AI is increasingly used in recruitment processes, but algorithms can introduce bias by discriminating against candidates based on non-professional criteria such as nationality, religion or socio-economic status. Such practices may exclude qualified individuals and reinforce structural inequality. While automation through AI can also assist employ - ees by simplifying or enhancing their tasks, it may also lead to the replacement of certain roles. The growing use of AI therefore calls for active oversight by govern - ments and employers to ensure a fair and sustainable transition.
At the EU level, the Artificial Intelligence Regulation – adopted on 13 March 2024 and to be transposed by August 2026 – aims to ensure the development of safe, human-centred AI while safeguarding funda - mental rights. At the national level, in Portugal, since May 2023, the Labour Code requires employers to inform employees about algorithmic management of access to employment, termination and working con - ditions. It also allows for more protective collective agreements and reinforces the right to equality when algorithmic decisions are involved. This challenge is ongoing. A continuous and adap - tive response is essential to ensure that the use of algorithms and surveillance preserves employee dig - nity and keeps digital transformation both ethical and inclusive. Pay Transparency In 2023, according to some official research, Portu - gal recorded a pay gap of 8.6% between men and women, ranking it as the 18th country in Europe where men earn more than women. In 2024, according to non-official research, such gap increased to more than 15%. Directive (EU) 2023/970 of 10 May 2023 was approved in order to overcome this issue in almost all member states. Once the Directive is transposed, pay transparency rules will be imposed even before the employment agreements come into force, at the time of recruit - ment. For example, employers will be required to ensure that all job advertisements include the starting salary applicable to that position. For employees, the Directive provides their right to request the average salary level, by gender, for their category. Although the deadline for transposing this Directive is 7 June 2026, Portugal has already implemented measures to achieve equal pay between men and women: • Law No 62/2017 of August 1st establishes the sys - tem of balanced representation between women and men in management and supervisory boards of public sector entities and listed companies; and • Law No 60/2018 of August 21st introduced rel - evant measures, including the availability of reports
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