Government plans to reform dismissal and layoff rules
ECO outlines a government proposal to change the rules governing dismissals and layoffs, presenting seven key points about who would be affected, the timeline and legal implications. The reforms aim to clarify employer obligations, make some dismissals harder or more costly and adjust procedures for collective measures; trade unions, employers and HR departments can expect negotiations and possible legal challenges. Workers and employers should watch for the formal bill and guidance on collective dismissal (despedimento coletivo) procedures before changes come into force.
Dismissal is the termination of an employment contract initiated by the employer, which can be for individual reasons (disciplinary or performance) or for economic/structural reasons. Proposed reforms to dismissal rules can change notice periods, severance entitlements and legal protections, so employees and employers should follow the timetable and check how any changes would affect rights and procedures.
A collective dismissal is when an employer terminates the contracts of multiple workers within a short period for economic, structural or operational reasons, and it typically triggers special procedures like consultation with workers or unions and notification to authorities. In practice this means affected employees gain extra protections and negotiation rights, so workers, unions and businesses should watch proposed rule changes that could alter thresholds or consultation requirements.
Hussel closes 18 stores in Portugal
Jerónimo Martins has assured the 60 Hussel employees of job security within other brands of the group in Portugal. The group cites the insolvency of its German partner and a sharp rise in costs — from rents to the price of cocoa — as reasons for the decision.
"Extending fixed-term contracts allows young people to remain in precarious jobs until retirement"
Paulo Gonçalves rejects the notion that the more than 100 changes the government wants to make to labour law are all negative. He acknowledges that there are “four or five promising points”. However, he warns that the majority disrupts the balance between employers and workers, introducing “enormous precariousness”, according to the president of the National Union of Managers.
Autoeuropa Workers Pass Motion Against Labour Package
The motion, unanimously approved, aims to extend the fight to defend workers' interests, who speak of a “perpetuation of precariousness” with the new labour package.
João Proença: Labour reform is based on the assumption that workers are not part of the company
João Proença, former leader of UGT, criticises the undermining of collective bargaining and states that the project is “100% unbalanced” because it “threatens job security” and “increases precariousness.”
