Latest news and stories about employment in government in Portugal for expats and residents.
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.
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.
A banked hours scheme (banco de horas) is a flexible working time arrangement under Portuguese labor law that allows employees to accumulate overtime hours and use them later as time off, rather than receiving immediate overtime pay.
Under the Portuguese Labour Code, banked hours can be established through collective agreements or, in some cases, individual agreements. The scheme allows employers to vary working hours based on demand — requiring longer hours during peak periods and compensating with shorter hours or days off later.
Banked hours schemes are a frequent topic in labor reform negotiations, with unions (particularly CGTP) pushing for tighter limits and greater worker protections, while employers argue for more flexibility. Proposed reforms have included extending eligibility to parents of young children and adjusting the cap on banked hours.
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.
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.
Rosário Maria Ribeiro da Costa Palma Ramalho is a distinguished labor law academic who was appointed Minister of Labour in the XXV Constitutional Government under Luís Montenegro. She is one of Portugal's leading experts on employment law, having authored major textbooks and legal commentaries on the Portuguese Labour Code.
As minister, she leads negotiations with trade unions (CGTP, UGT) and employer confederations on labor reform, including changes to dismissal rules, working time flexibility, and collective bargaining. Her academic background gives her unusual technical authority in a portfolio that is typically politically charged.
The Standing Committee for Social Dialogue (Comissão Permanente de Concertação Social or CPCS) is a forum where the government, trade unions, and employer associations negotiate labor policies and social issues. It serves as a primary mechanism for reaching national agreements on topics like minimum wage adjustments and labor law reforms.
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.
Luís Filipe Montenegro Cardoso de Morais Esteves (born February 16, 1973, in Porto) is a Portuguese lawyer and center‑right politician who has served as Prime Minister of Portugal since April 2, 2024. A long‑time member of the Social Democratic Party (PSD), he is the leading figure of the post‑Troika generation of Portuguese conservatives. Montenegro was elected to the Assembly of the Republic in 2002 for the Aveiro district and remained an MP for 16 years, becoming PSD parliamentary leader from 2011 to 2017 during the bailout and austerity period under Prime Minister Pedro Passos Coelho. He was a prominent defender of strict austerity measures, arguing in 2014 that “the life of the people is no better, but the life of the country is a lot better,” a phrase that has followed his public image since. After an unsuccessful leadership bid against Rui Rio in 2020, Montenegro won the PSD leadership in 2022. He then forged the centre‑right Democratic Alliance (PSD–CDS‑PP and allies), which won a plurality of seats in the 2024 legislative election. Refusing to partner with the far‑right Chega, which he has called “often xenophobic, racist, populist and excessively demagogic,” he formed a minority government as head of the XXIV Constitutional Government on April 2, 2024. His first government fell in March 2025 after a no‑confidence vote linked to a conflict‑of‑interest affair, but fresh elections saw the Democratic Alliance increase its seat share, allowing Montenegro to return as prime minister leading the XXV Constitutional Government. His importance to Portugal lies in attempting to re‑center the traditional centre‑right after the crisis years, defending liberal‑conservative economics and EU alignment while drawing a sharp line against formal cooperation with the radical right, thus shaping how Portuguese democracy manages its new multi‑party era.
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.
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.
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.
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.
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.
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.
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.
CGTP (Confederação Geral dos Trabalhadores Portugueses – Intersindical Nacional) regularly publishes studies and proposals on labor market conditions, wages, working time, and employment rights. These reports are used to support the union confederation's negotiating positions with the government and employers.
CGTP studies typically cover topics such as minimum wage adequacy, working hours reform, collective bargaining trends, social security sustainability, and the impact of proposed labor law changes on workers. The confederation uses this research to advocate for positions in tripartite social dialogue (Concertação Social) alongside the UGT union confederation and employer groups.
These publications are significant because they often shape public debate ahead of labor reforms and can influence the pace and direction of legislative changes.
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.
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.
CGTP (Confederação Geral dos Trabalhadores Portugueses – Intersindical Nacional) regularly publishes studies and proposals on labor market conditions, wages, working time, and employment rights. These reports are used to support the union confederation's negotiating positions with the government and employers.
CGTP studies typically cover topics such as minimum wage adequacy, working hours reform, collective bargaining trends, social security sustainability, and the impact of proposed labor law changes on workers. The confederation uses this research to advocate for positions in tripartite social dialogue (Concertação Social) alongside the UGT union confederation and employer groups.
These publications are significant because they often shape public debate ahead of labor reforms and can influence the pace and direction of legislative changes.
Luís Filipe Montenegro Cardoso de Morais Esteves (born February 16, 1973, in Porto) is a Portuguese lawyer and center‑right politician who has served as Prime Minister of Portugal since April 2, 2024. A long‑time member of the Social Democratic Party (PSD), he is the leading figure of the post‑Troika generation of Portuguese conservatives. Montenegro was elected to the Assembly of the Republic in 2002 for the Aveiro district and remained an MP for 16 years, becoming PSD parliamentary leader from 2011 to 2017 during the bailout and austerity period under Prime Minister Pedro Passos Coelho. He was a prominent defender of strict austerity measures, arguing in 2014 that “the life of the people is no better, but the life of the country is a lot better,” a phrase that has followed his public image since. After an unsuccessful leadership bid against Rui Rio in 2020, Montenegro won the PSD leadership in 2022. He then forged the centre‑right Democratic Alliance (PSD–CDS‑PP and allies), which won a plurality of seats in the 2024 legislative election. Refusing to partner with the far‑right Chega, which he has called “often xenophobic, racist, populist and excessively demagogic,” he formed a minority government as head of the XXIV Constitutional Government on April 2, 2024. His first government fell in March 2025 after a no‑confidence vote linked to a conflict‑of‑interest affair, but fresh elections saw the Democratic Alliance increase its seat share, allowing Montenegro to return as prime minister leading the XXV Constitutional Government. His importance to Portugal lies in attempting to re‑center the traditional centre‑right after the crisis years, defending liberal‑conservative economics and EU alignment while drawing a sharp line against formal cooperation with the radical right, thus shaping how Portuguese democracy manages its new multi‑party era.
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.
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.
CIP is the Confederation of Portuguese Business (Confederação Empresarial de Portugal), the main employers’ association that represents companies and sector groups in Portugal. It lobbies government on economic and labour policy and its statements are watched by investors, employers and workers when debates arise over funding rules and labour reforms.
Socialist Party (PS)
Portugal's other traditional major party suffered a historic collapse in the 2025 election, dropping from 78 to 58 seats and falling to third place for the first time in democratic history. The party was led by Pedro Nuno Santos from January 2024 until his resignation following the May 2025 defeat. José Luís Carneiro, a 53-year-old former Minister of Internal Administration known for his moderate positioning within the party, was elected unopposed as the new Secretary-General with 95% of votes in June 2025. The Socialist Party governed Portugal from 2015 to 2024, including an absolute majority from 2022 to 2024 under António Costa, who resigned in November 2023 amid a corruption investigation. The PS previously led the innovative "Geringonça" (contraption) coalition government from 2015-2019, a minority government supported by the Left Bloc and Portuguese Communist Party that reversed austerity measures and presided over economic recovery.
