Compensation for the dismissal of a precarious employee, hired for a fixed or indefinite period, will cost an additional six days when it increases from 18 to 24 days for each year of seniority, according to the government’s proposal to amend the labor law, within the framework of the Decent Work Agenda, which is being voted on in Parliament today, following its general adoption in July. With approval guaranteed by the absolute majority of the PS, in the Assembly of the Republic, the measure should enter into force at the beginning of 2023.
At the end of a fixed-term employment contract pursuant to a statement from the employer […]the employee is entitled to compensation equivalent to 24 days of base salary and seniority payments for each full year of seniority,” the director’s proposal reads. However, the severance pay cannot exceed 240 times the guaranteed minimum monthly wage due in 2023, it will rise from EUR 705 to EUR 760, which means that these workers cannot receive more than EUR 182,400 for their dismissal.
Fixed term contracts are limited to two years and fixed term contracts to four years. According to the latest report from the National Institute of Statistics, there were 692,000 precarious contracts out of a total of 4.2 million workers in September, a number that increased by 3.6% compared to June, although it rose by 1,000 in the year. 9% fell. on year terms.
The management’s proposal also provides for a series of other measures to combat precarious work: companies are not allowed to replace these employees in the same position or activity for a third of the term of the contract. It is also prohibited to outsource services for at least a year after being laid off.
Government forces PS to clarify
Still talking about severance costs, but now in the context of permanent contracts, i.e. when employees are in permanent employment, the Minister of Labor, Ana Mendes Godinho, had already clarified that the increase in compensation from 12 to 14 days would not retroactive to 2013 and would only count from the moment of entry into force. However, and to allay doubts raised by the socialist bank, the official indicated that the party itself would clarify this point. Speaking to Dinheiro Vivo, PS deputy Fernando José, coordinator of the “Agenda for Decent Work” working group, stated that the “parliamentary group will provide the clarification orally or in writing to ensure that the measure only comes into force when it enters into force”. force as agreed in the Social Concert”.
Double extra hours
Also in the context of the income agreement between the government, the employers’ federations and UGT, overtime of more than one hundred hours per year is now paid twice, with an increase of 50% for the first hour or fraction and 75% per hour or subsequent fraction, on business days; and 100% for any hour or part thereof, on a mandatory or additional weekly rest day, or on a public holiday,” said the PS amendment to the government’s proposal. This was the additional allowance in effect until 2012, before the troika rescue Portugal, but from the first hour, without the hundred hour limit The PS also introduced a nuance that frees the caregiver from the obligation to provide extra work while verifying the need for help.
contract with platforms
Another amendment to the Labor Code, which will be among the first to be discussed and voted on, concerns the presumption of an employment contract between digital platforms or intermediaries and TVDE drivers or couriers, the parliamentarian stressed to Dinheiro Vivo. The government proposal states that there is a presumption of an employment contract whenever the platform operator determines working hours, remuneration and equipment.
However, the PS has tabled an amendment that stipulates that platforms also fall under this presumption of employment contract. For example, “the digital platform and the intermediary operator, as well as the respective managers, administrators or directors, companies that have a cross-shareholder relationship with the digital platform or the intermediary operator, are jointly and severally liable for the employee’s credits arising from an employment contract, or from its violation or termination,” reads the Socialist Project.
PS clarifies that digital platforms and intermediaries are responsible for the rights and remuneration of employees, due to the presumption of an employment contract.
With a delay of more than a year, today the vote on the amendments to the Labor Code, in the context of the Decent Work Agenda, starts in the specialism. This reform was interrupted in 2021 with the leadership of the state budget for 2022, the dissolution of parliament and the calling of early parliamentary elections. Now, with an absolute socialist majority, the approval of the government proposal and amendments of the PS is guaranteed. Deputy Fernando José believes that “the process will be completed by the end of the year to enter into force in early 2023, but not in January”.
Salomé Pinto is a journalist for Dinheiro Vivo
Source: DN
