Lisbon, 6 May 2026 (Lusa) – The Portuguese government, employers and unions are meeting on Thursday for statutory tripartite talks to conclude negotiations on the draft labour law, with an agreement looking unlikely and a general strike called by the CGTP union looming.
The meeting of the Permanent Commission for Statutory Tripartite Talks (CPCS) was announced by the minister of labour on 23 April, hours after the UGT union unanimously rejected the latest version of the proposed revision of labour legislation, despite having once again demonstrated a willingness to extend negotiations should the government put forward a new proposal.
The minister set Thursday’s meeting as the deadline to conclude the negotiation process that has been dragging on for nine months, with or without an agreement with the partners, having challenged the UGT to “show that it genuinely wants to find common ground” and to present by then a “truly constructive and clear position” with “concrete proposals” on the issues it believes have not been agreed upon, ruling out a new proposal from the government.
Following this challenge, the UGT leader indicated that at Thursday’s meeting he would “reaffirm the proposals” he had already made and did not rule out participation in the general strike meanwhile called by the CGTP for 3 June, stressing, however, that any decision would only be taken after the CPCS meeting.
The main points of divergence identified by the UGT include restrictions on outsourcing, the return of individual time off in lieu (TOIL), continuous workdays, the waiver of labour rights, and the non-reinstatement of workers in cases of unfair dismissal.
According to the final draft for a potential agreement, which Lusa has accessed and which "does not bind any of the parties if the agreement is not concluded", the government has not abandoned the individual TOIL. Under the new name "time off in lieu by agreement", the proposal allows its establishment through an "express agreement between the employer and the worker" in the "absence of a collective labour agreement."
Regarding the non-reinstatement of workers in cases of unfair dismissal, the proposal suggests extending this possibility to small and medium-sized enterprises. This option already exists for micro-enterprises and workers in administrative or management positions, whereas it had previously been suggested that large businesses might also be included, and it also revises the compensation to be applied in these cases.
The final version outlines restrictions on outsourcing, stating that the prohibition applies "in the six months following a decision of collective dismissal or dismissal due to the elimination of a job position". This rule covers functions that fall "within the scope of the company's main activity."
With regard to voluntary waiver, the proposal provides that the worker may waive payment of the amounts due when they are dismissed by means of “a written declaration in the presence of a trade union representative representing the worker or, failing that, a member of the workers’ committee or, alternatively, when the declaration is certified by a notary in accordance with the law”.
Finally, regarding the introduction of continuous working days in the private sector for workers with children under 12 or those with disabilities, chronic or oncological illnesses, the latest version changes the nature of the provision. Initially described as a "right", its application now depends on being "provided for in a collective labour agreement or, alternatively, by agreement with the employer".
The possibility of an agreement between the government, the union, and employers' representatives now lies with the UGT. The union has warned that it will not yield on the government's "red lines", while business confederations have endorsed the proposal, despite describing the document as "the only possible agreement".
Minister Palma Ramalho said that, should the talks fail to reach a deal, the bill sent to parliament will derive from the initial draft and any contributions "the government considers useful" gathered during negotiations. This implies the final text may not incorporate every measure included in the latest proposal.
The government presented the draft labour reform, titled "Labour XXI", on 24 July 2025. It represents a "profound" revision of labour law, proposing more than 100 changes.
JMF/RYOL // AYLS
Lusa
