Government approves labour reform bill for parliamentary debate

Thursday, 14 May 2026AI summary

💼 Work 🏛️ Government #labour-law #government-policy

Government approves labour reform bill for parliamentary debate — Photo: RTP Notícias

The government has approved a proposal to revise labour legislation, which will now move to the Assembly of the Republic (Assembleia da República). The bill includes extending fixed-term contracts and increasing parental leave pay to 100% for up to six months, while also lifting the ban on outsourcing after collective redundancies. Trade union centers, including the General Confederation of Portuguese Workers (Confederação Geral dos Trabalhadores Portugueses or CGTP) and the General Workers' Union (União Geral de Trabalhadores or UGT), have strongly criticized the proposal as a regression in labour rights.

Update: Labour reform heads to parliament amid political tension

The government is now navigating parliamentary negotiations, with the Minister of Labour indicating potential flexibility on specific measures, such as the restoration of three days of leave. Meanwhile, the Socialist Party (Partido Socialista or PS) has signaled it will not support the current package, and political observers are monitoring whether the party Chega will influence the final outcome.

Context & Explainers

The Assembly of the Republic (Assembleia da República) is Portugal's unicameral parliament, located in the Palácio de São Bento in Lisbon. It consists of 230 deputies elected by proportional representation for four-year terms.

The Assembly's powers include making and amending laws, approving the state budget, ratifying international treaties, and overseeing the government through debates, hearings, and committees. It can also pass votes of no confidence to bring down a government, as happened in March 2025.

Following the May 2025 elections, the current parliamentary composition is led by the Democratic Alliance (AD) with the largest share of seats, followed by Chega, PS, and smaller parties including the Liberal Initiative, Left Bloc, Livre, and PCP.

The General Confederation of the Portuguese Workers (CGTP – Confederação Geral dos Trabalhadores Portugueses) is Portugal’s largest trade-union confederation, grouping most unions in manufacturing, public services and many other sectors.

Founded clandestinely in 1970 as “Intersindical” under the dictatorship, it emerged publicly after the 1974 Carnation Revolution and was legalised in 1975. It has been central to virtually all major labour struggles since then, from defending collective bargaining and the 40‑hour week to leading general strikes against austerity and labour‑law rollbacks.

CGTP is historically close to the Portuguese Communist Party and has a class‑struggle, anti‑neoliberal profile, strongly critical of EU and government policies seen as undermining workers’ rights. It favours grassroots mobilisation and strikes over compromise, often refusing national social‑pact deals that the more centrist UGT is willing to sign.

In today’s Portugal, CGTP remains a key actor in wage bargaining, labour‑law debates and national protests; together with UGT it called the first joint general strike in years in December 2025, signalling its continuing capacity to organise mass action.

The General Union of Workers (UGT – União Geral de Trabalhadores) is one of Portugal’s two main national trade union confederations. Founded in Lisbon on 28 October 1978, it was created as a social‑democratic alternative to the more communist‑aligned CGTP after the 1974 Revolution, grouping unions close to the Socialist Party and moderate centre‑right currents.

UGT represents around 400,000 workers and is affiliated to the European Trade Union Confederation and International Trade Union Confederation, giving Portuguese labour a voice at EU and global level. Its principles stress union independence from the state, employers, churches and parties, internal democracy and active worker participation.

Historically, UGT’s hallmark has been “propositive” social dialogue: it is usually more willing than CGTP to sign tripartite agreements on wages, labour law and social policy with governments and employers, shaping minimum wage increases, working‑time rules and social protection reforms. This makes UGT a key centrist actor in Portugal’s industrial relations, often mediating between left and right while defending collective bargaining and incremental improvements to labour rights.

São Bento refers to São Bento Palace (Palácio de São Bento), the historic building in Lisbon that houses the Assembly of the Republic (Portugal’s parliament) and is often used in the media as a shorthand for the national government. For expats, protests directed at São Bento signal demonstrations at the seat of political power and can cause road closures and increased police presence in central Lisbon.

André Ventura, born January 15, 1983, is a lawyer, academic, and Portugal's most prominent far-right leader. He founded Chega ("Enough") in 2019 after his PSD mayoral campaign attacked the Romani community. Chega surged from 1.3% in 2019 to 22.8% in May 2025, becoming parliament's second-largest party and making Ventura Leader of the Opposition.

His platform emphasizes immigration restrictions, law-and-order policies, constitutional reform, and contains inflammatory anti-Romani rhetoric that has triggered multiple discrimination convictions and investigations. Politically classified as far-right by international media, Ventura cultivates alliances with European far-right figures including Marine Le Pen and Santiago Abascal.