New General Labor Law

On December 27, 2023, Law No. 12/23 of December 27, was published in the Official Gazette. The law approves the New General Labor Law, which revokes the Law No. 7/15 of June 15th, as well as Rectification No. 15/15 of October 2nd, and all separate legislation that contradicts it. Law No. 12/23 of December 27th, establishes a Vacatio Legis period of 90 days after its publication, meaning that the New General Labor Law only comes into force on March 26th, 2024. Therefore, until the New General Labor Law comes into force, the current General Labor Law, approved by Law no. 7/15, of 15 June, remains in force.

As a preliminary note, it should be noted that this law does not amend or change the special regime that regulates the exercise of the professional activity of non-resident foreign workers, approved by Presidential Decree No. 43/17, of 6 March, as amended by Presidential Decree No. 79/17, of 24 April. In any case, this does not invalidate the fact that companies cannot revise or update the templates of employment contracts used in the recruitment of non-resident foreign workers, in order to accommodate the main changes introduced in terms of relationships established under an employment contract, starting with personality rights.

After this brief note, it is now important to highlight, succinctly, the main changes introduced to the various matters currently regulated and provided for in the Current GLL and, as well, the main new features that are introduced within the framework of labour relationship.

In terms of the main changes, we highlight the following:

1. Reinstatement of the rule that the employment contract must be concluded for an indefinite period of time, as long as the hiring of the worker aims to satisfy the employer's permanent needs;
   
   
2. Reinstatement of the fixed-term contract regime that was in force during the validity of Law no. 2/00, of February 11th and which was revoked by the Current GLL; the fixed-term employment contract once again has an exceptional and transitory nature, that is, it is only legal to hire employees for a fixed period in temporary and transitional situations expressly permitted by law, and the maximum duration of the employment contract will depend on the temporary or transitory need that underlies its celebration (the maximum duration can vary between 6 months and 5 years). It is important, however, to highlight that the New GLL provides for a rule relating to the application of the law over time specifically aimed at fixed-term employment contracts. Under the terms of the aforementioned rule, provided for in article 319 of the New GLL, fixed-term employment contracts concluded in light of the Current GLL (Law No. 7/15, of 15 June) are in force under the aforementioned Law until to the date scheduled for its expiry. If, on the date of expiry of the contract, the parties intend to renew it, the employment contract is considered renewed under the terms of the New GLL; 
   
   
3. Elimination of the most favorable rules depending on the size of the company (micro, small, medium or large company), regarding the duration of the fixed-term employment contract, regarding salary supplements, regarding absences due to accidents or common illnesses and regarding compensation for termination of the employment contract; 
   
   
4. Introduction of new types of special employment contracts, namely teleworking contracts, sports employment contracts and artistic work contracts; 
   
   
5. Insertion of the rule according to which the employer cannot, for the purposes of admission, require the candidate or worker to carry out or present tests or medical examinations, except when these have as their purpose the protection and safety of the worker or third parties, if private requirements inherent to the activity justify it; 
   
   
6. Limitation of the increase in the trial period to up to 120 or 180 days, in employment contracts for an indefinite period, for workers who perform management functions; 
   
   
7. Standardization of the trial period applicable to fixed-term employment contracts, the rule limit of which is now 30 days, regardless of the professional category or qualifications of the employee; 
   
   
8. Elimination of the figure of prior investigation in disciplinary matters, in situations where the infraction or its content are not sufficiently determined; 
   
   
9. Expansion of the personal scope of delegation of competence in disciplinary matters, with the possibility now expressly enshrined for the employer to delegate the instruction of disciplinary proceedings to a person not linked to the company; 
   
   
10. Stipulation of a minimum period of defense of 5 days for the employee to consult the disciplinary process and prepare the disciplinary interview, that is, this cannot be carried out within a period of less than 5 days, counting from the date of delivery of the summons; 
    
    
11. Increase in the catalog of disciplinary measures, with the inclusion of temporary category demotion and suspension of work with partial loss of pay; 
    
    
12. Introduction of the prohibition on initiating disciplinary proceedings during the employee's vacation period; 
    
    
13. Inclusion of the duty to speak out (without binding nature) on the part of the trade union organization within the scope of the disciplinary procedure, in the case of an employee who performs the functions of trade union representative or member of the base body representing employees (i.e. Union Committee); 
    
    
14. Extension of the deadline for the entry into force of internal regulations; 
    
    
15. Unification of material or formal requirements for the admissibility of temporary or permanent transfer or change of workplace; 
    
    
16. The exemption from working hours in situations allowed by law now depends solely and exclusively on agreement between the employer and the employee, meaning the legal exemption regime for working hours referred to in paragraph 1 of article 107 of the current GLL is abolished; 
    
    
17. Admission of the accumulation of vacations over 2 or 3 years, subject to agreement between the employer and the employee; 
    
    
18. Expansion of the range of justified absences; 
    
    
19. Change in the period and remuneration due in case of justified absences resulting from an accident or common illness; 
    
    
20. Elimination of the effect of unjustified absences or justified absences that do not confer the right to remuneration, on the duration of the annual vacation period; 
21. Insertion of sexual harassment as a just cause basis for disciplinary dismissal and indirect dismissal; 
    
    
22. Reinstatement of the legal preference criteria for the selection of employees to be dismissed, in the dismissal procedure for objective causes, as well as the change in the number of jobs covered to be considered collective dismissal; 
    
    
23. Clarification of the regime applicable to the illegality of dismissal, in particular, in the field of general causes of illegality and its legal effects and consequences, depending on whether it is a null or unfounded dismissal; 
    
    
24. Change in the deadline for judicial challenge of dismissal; 
    
    
25. Elimination of the mandatory procedure for a conciliation, mediation or arbitration phase in resolving labor disputes.

In terms of main news, we highlight the following:

1. Express provision of the figure of the promissory contract;
   
   
2. Introduction of a section on personality rights, relating to freedom of expression and opinion, physical and moral integrity, privacy of private life, protection of personal data, medical tests and examinations, means of remote surveillance, and the confidentiality of messages and access to information;
   
   
3. Express inclusion of the maternity pre-leave regime, without prejudice to the special regulation provided for in Presidential Decree No. 8/11, of 7 January 2011;
   
   
4. Introduction of the provision of occasional or temporary placement of employees between employers within the same business group, upon verification of certain requirements, whether material or formal;
   
   
5. Insertion of flexible working hours for employees with family responsibilities;
   
   
6. Insertion of the employer's liability for any bodily injury, functional disorder or illness not included in the codified index of occupational diseases, provided that it is proven that they are a necessary and direct consequence of the activity carried out;
   
   
7. Introduction of the duty to communicate the opening of new work centers or the installation of new equipment to the General Labour Inspectorate, at least 15 days in advance of the opening or installation date;
   
   
8. The interruption of work activity on the eve of Family Day (Christmas Day) and New Year's Day;
   
   
9. Insertion of work appreciation and performance evaluation of employees;
   
   
10. Insertion of new grounds for nullity of dismissal.

In view of the above, we understand that this New GLL introduces relevant changes in the field of labour relations, which is why employers must assess the impact that these changes have on the organization and functioning of their activity, by first drawing up an adaptation plan providing for internal standards, documents and procedures that must be updated and revised, so that they are in compliance with this New GLL. We are naturally available to assist you in preparing this plan.

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Read the original publication at AVM Advogados