Employment news in Portugal

Data from the Directorate-General for Employment and Labour Relations (Direção-Geral do Emprego e das Relações de Trabalho or DGERT) shows that collective redundancies rose 13.4% by August, reaching 407 processes. Despite the increase in company-led dismissals, the total number of workers affected fell by 9.2% compared to the same period last year. The Lisbon and Tagus Valley region currently reports the highest number of these redundancy cases.

Companies reported 375 collective redundancies through July, a 13% increase compared to the same period last year. Data from the Directorate-General for Employment and Labour Relations (Direção-Geral do Emprego e das Relações de Trabalho or DGERT) indicates this is the highest level of workforce reductions since the pandemic year of 2020.

A new government bill proposes that companies must disclose salary information to candidates by the time a contract is signed. The legislation also allows employees to request information regarding the salaries of colleagues performing the same functions, while introducing protections against workplace retaliation for those exercising these rights.

The government led by Prime Minister Luís Montenegro has decided not to require companies to disclose salary offers directly in job advertisements. While the European directive on pay transparency allowed for such a requirement, the upcoming national transposition will not include this provision. The government is instead focusing on strengthening sanctions for companies that maintain wage inequalities.

Portugal recorded three million tourist arrivals in July, generating 800 million euros in revenue. Despite these record-breaking figures, the tourism industry is struggling with a critical labor shortage as workers increasingly prioritize stability and work-life balance over traditional hospitality roles.

The Porto Labour Court has declared the dismissal of an employee hired through an international Employer of Record (Employer of Record or EOR) structure to be unlawful. This ruling highlights the legal complexities surrounding this hiring model, which is increasingly used by foreign companies to employ staff in Portugal.

The television channel Conta Lá, led by CEO Sérgio Figueiredo, is implementing a temporary suspension of employment contracts or reduction of working hours, known as a lay-off, to cut costs. The measure follows reports of unpaid wages for dozens of workers since the channel began broadcasting in 2025.

The International Monetary Fund (Fundo Monetário Internacional or FMI) has recommended that Portugal increase labour market flexibility to boost productivity and encourage companies to offer more permanent contracts. The FMI suggests that making dismissals easier would incentivize businesses to move away from short-term hiring. This recommendation follows the recent parliamentary rejection of the government's own labour reform proposals.

The Left Bloc (Bloco de Esquerda or BE) has introduced a package of labour reforms ahead of this week's parliamentary debate. Their proposals include salary increases for night and shift workers, a ban on dismissals decided by artificial intelligence, and new protections for outdoor workers during extreme weather. The party describes these measures as a litmus test for the government's commitment to worker protections.

The government's proposed labour package, submitted to the Assembly of the Republic by Minister Maria do Rosário da Palma Ramalho, is facing significant criticism for its perceived lack of dialogue with unions and the digital sector. Chega leader André Ventura has expressed openness to negotiation but threatened to vote against the proposal in the upcoming general debate.

The UGT meets today to analyse and vote on the final proposal for amendments to labour legislation, in the aftermath of hearings with the President of the Republic and at a time when the document already has the 'green light' from employers.

The government has warned that negotiations regarding the Trabalho XXI labour law reform will conclude in the coming days, regardless of whether an agreement is reached with social partners. While the Minister of Labour expressed hope for a consensus, trade union centres remain divided, with the CGTP denouncing the process as a simulation after being excluded from preliminary meetings. Meanwhile, the Registry and Notary Workers' Union has granted a final ten-day extension for talks before considering strike action.

Update: Labour law negotiations set for final Friday meeting

The government has presented a final draft of the labour reform to the social concertation committee, with a new meeting scheduled for Friday to discuss minor adjustments. While the Minister of Labour claims conditions are met to conclude the process, the General Workers' Union (União Geral de Trabalhadores or UGT) maintains that significant issues, including the bank of hours (banco de horas) and continuous working day (jornada contínua), remain unresolved.

Four employers' confederations have accused the General Workers' Union (União Geral de Trabalhadores or UGT) of acting in bad faith during labour law negotiations. The confederations claim the union rejected a proposal based on an outdated version of the text, effectively breaking consensus. The employers expressed profound disappointment, stating that the UGT's actions have compromised the negotiation process.

Update: Labour law negotiations move to Social Concertation

Minister of Labour Maria do Rosário Palma Ramalho has summoned the Standing Committee for Social Dialogue (Comissão Permanente da Concertação Social or CPCS) for a meeting this Thursday, April 16. While the minister stated that negotiations are in the final stretch, she warned that if an agreement is not reached, the process will proceed to Parliament.

Prime Minister Luís Montenegro has urged the General Workers' Union (União Geral de Trabalhadores or UGT) to finalize an agreement on proposed labour law revisions, calling a failure to act inexcusable. The UGT national secretariat is scheduled to vote this Thursday on whether to approve the government's latest proposal. Montenegro argues that the current framework offers a unique opportunity to improve wages and increase company competitiveness.

After 53 meetings, the Government, the four business confederations, and the UGT have finally reached a 'construction level' for the labour law reform proposal, which requires each organisation to consult its internal bodies. This is what the trade union centre led by Mário Mourão will do this Thursday, in a...

The Minister of Labour, Solidarity and Social Security, Rosário Palma Ramalho, announced that negotiations regarding labour law reforms have reached a constructive level after eight months of discussions. The government is now waiting for the General Union of Workers (União Geral de Trabalhadores or UGT) and business confederations to consult their internal bodies before finalizing the proposal.

Minister of Labour Maria do Rosário Palma Ramalho is meeting this Monday with business confederations and the General Workers' Union (União Geral de Trabalhadores or UGT) to discuss labour law reforms. This marks the 53rd meeting between the government and social partners as they attempt to reach an agreement on contract and dismissal regulations. The UGT is expected to analyze the proposed changes during its upcoming national secretariat meeting.

Negotiations between the government, the General Workers' Union (União Geral de Trabalhadores or UGT), and employers' associations have ended without an agreement on a new labour package. Despite 52 meetings, parties remain divided on key issues, though some participants suggest there is still room for a deal. The reforms are intended to update employment laws and working conditions across the country. Workers should note that current labour regulations remain in place while discussions continue.

Update: UGT awaits final government proposal before April decision

The UGT is waiting for a final written proposal from the government before its leadership meets on April 9 to decide on the labour package. While the General Confederation of Portuguese Workers (Confederação Geral dos Trabalhadores Portugueses or CGTP) was excluded from the latest meeting, employers' associations have signaled support for long-term salary increases. Negotiators are aiming for a consensus on the Labour Code (Código do Trabalho) shortly after Easter.

Negotiations for the labour law (lei laboral) revision resume today between the government, employer confederations, and the General Workers' Union (União Geral de Trabalhadores or UGT). Prime Minister Luís Montenegro stated that over 70 norms have been agreed upon, though key disagreements remain over the individual bank of hours (banco de horas) and rules regarding unlawful dismissal. Workers should note that the General Confederation of Portuguese Workers (Confederação Geral dos Trabalhadores Portugueses or CGTP) plans to attend despite not being officially invited.

Negotiations for a new labour reform package ended without an agreement between the government, the General Workers' Union (União Geral de Trabalhadores or UGT), and employer confederations. The Business Confederation of Portugal (Confederação Empresarial de Portugal or CIP) stated that 12 points remain unresolved after seven months of debate, including last-minute demands that hindered a consensus. While the government blamed the UGT for being “intransigent,” the union argued the proposals were structurally inadequate and failed to meet necessary conditions. Workers should note that current labour laws remain in place as the future of the reform package is now uncertain.

Update: Opposition leader criticizes government's "lack of humility"

The Secretary-General of the Socialist Party (Partido Socialista or PS), José Luís Carneiro, accused the government of a “lack of democratic humility” following the collapse of labor negotiations. Carneiro argued that the failure to reach an agreement with social partners harms the country's competitiveness and urged Prime Minister Luís Montenegro to resume dialogue on more acceptable terms.

Commentators say recent mass layoffs at companies such as Block underline that artificial intelligence is already replacing roles across professions, with programmers and consultants among those most exposed. Estimates cited in coverage suggest almost a third of some job categories in Portugal face disruption, even as new roles and innovations may emerge. Workers in tech and professional services should reassess skills and retraining options as firms speed AI adoption.

Critical TechWorks plans to hire about 300 people in 2026, ECO reports, expanding its workforce as part of a growth push in the tech sector. The new roles may span development, operations and support functions; the company frames the recruitment as part of ongoing investment in local teams. Jobseekers and tech professionals should watch the firm's careers pages and local recruitment events for openings. Workers and recruiters in Portugal's tech scene may see increased hiring competition in the coming months.

Firms facing historic employment levels and labour shortages are increasingly hiring or re‑hiring workers over 55, Dinheiro Vivo reports, with particular demand in food, manufacturing, hospitality, logistics and contact centres. Eurofirms says employers are adapting hours and roles to attract senior profiles. Older jobseekers and employers looking to fill roles should note rising openness to flexible schedules and senior hires.