Fixed-term contracts cut to maximum of two years

By TPN/Lusa, in Business · 28-03-2018 14:38:00 · 0 Comments

The maximum length of fixed-term work contracts in Portugal is to be reduced from three years to two, and there will be less leeway for renewals, the government announced at the end of last week when it presented proposals to alter the labour law.

The new proposal reduces the flexibility between a company’s temporary needs and the actual length of the fixed-term work contracts.
For instance, if a company enters into a one-year contract with a worker, the next three renewals cannot, in total, be for more than a year.

The measures also include a proposal from the government’s election programme that limits the reasons for fixed-term contracts.
Temporary work will also have limitations on the number of times a contract can be renewed, something that does not exist under current law.



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