Lisbon, Portugal – Talks between the Portuguese government, employers, and unions are set to resume next Monday, , following a series of delays and disagreements over proposed labor reforms. The meeting, convened by the Minister of Labour, aims to address concerns raised by both sides regarding the government’s “Trabalho XXI” plan, a sweeping overhaul of Portugal’s labor laws.
The initial meeting, scheduled for this Wednesday, was postponed at the request of employer confederations after it became clear that the UGT, a major union federation, would not be participating. The UGT had previously deemed a separate meeting, excluding the CGTP – another significant union – as “extemporaneous.”
Despite the initial setbacks, a path forward appears to be emerging. Francisco Calheiros, president of the Confederation of Tourism of Portugal (CTP), speaking on behalf of CIP, CAP, and CCP, expressed a willingness to negotiate, stating, “As our interest is to reach an agreement, and we want the UGT to be present, the four employer entities have shown their availability to be here from Monday at 9:00 am.” He added that they were awaiting confirmation from the Minister that the UGT would indeed be able to attend the rescheduled meeting.
The “Trabalho XXI” plan, unveiled in September 2025, proposes significant changes to Portugal’s labor code, including extending the limit of fixed-term contracts from two to three years, reintroducing the individual “banco de horas” system allowing for 10-hour workdays, and broadening the scope of essential services required to maintain operations during strikes to include sectors like childcare and elderly care. The government argues these reforms are necessary to boost competitiveness and modernize hiring practices.
However, the proposals have sparked considerable opposition from unions, who fear the changes will weaken worker protections and increase job insecurity. The CGTP was not initially invited to the discussions, and the UGT’s initial reluctance to participate underscored the deep divisions surrounding the proposed reforms. The government maintains its commitment to dialogue, with a Ministry of Labour official stating they remain “fully available to talk” with the UGT.
The planned reforms touch upon numerous aspects of the workplace, from parental leave and remote work regulations to mandatory training requirements for micro-companies. The government’s stated goal is to increase “flexibilidade” – flexibility – allowing employers greater leeway to reward merit, attract young talent, and adapt to fluctuating demand.
While some expat managers may welcome the prospect of streamlined procedures for terminating contracts or scheduling overtime, concerns remain among employees about potentially longer working hours and diminished bargaining power. The upcoming meeting on Monday represents a crucial opportunity for the government and social partners to bridge these divides and reach a consensus on the future of Portugal’s labor laws. The outcome of these negotiations will likely have significant implications for businesses, workers, and the Portuguese economy as a whole.
The initial attempt at a meeting between the government and employer confederations, held without the presence of any central unions, highlighted the complexities of the situation. The CGTP was not invited, and the UGT announced it would not attend, deeming the meeting premature.
