New amendments to the employment law and the consolidation of the significant changes to the Portuguese Labour Code which were carried out in 2023 will bring new challenges to employers in the year to come. We examine below the trends which should be included in the employers’ agenda for 2024:
1. Increase of the monthly minimum wage
The monthly minimum wage in Portugal will be increased to €820.00, with effects from 1 January 2024 onwards. For part-time employees, minimum wage should be updated proportionally.
Call to action - Employers update the employees’ salaries accordingly.
2. Flexibility in the organization of work and telework
The younger generation aims for greater work-life balance. In this respect, we expect an expansion of the telework regime, as well as other flexible working mechanisms (e.g. exemption of working hours, bank of hours, adaptability, etc.).
Call to action - Employers should discuss this topic internally in view of adopting solutions for a better work-life balance, in order to maintain their employees and to attract possible new ones. In this respect, it is also important to ensure compliance with the applicable regulations – in specific, in respect of complements paid in telework, as well as hygiene, health and safety at work.
3. Protection of parenthood and parental leaves
The new regulation to the decent work agenda, which entered into force in August 2023, establishes extended lengths for the different parental leaves. Employees who become parents in 2024 will have the right to use this new parental leaves.
Call to action - Employers should review their internal procedures in order to ensure that they are compliant with the new rules on parental leaves.
4. Artificial Intelligence
With the advent of artificial intelligence tools and systems, the recent legal amendments regarding these decision-making systems will become a central issue for employers.
Call to action - Employers should review their internal procedures in order to ensure that they are compliant with the new rules on artificial intelligence.
5. Student employees on school vacations
The Government approved a simplified legal framework for students working on school vacations. Employers who work on seasonal activities, for example, may wish to start using this type of simplified employment contract.
Call to action - Employers should review the needs of their companies in order to understand if this new legal regime can be an option for them.
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