Anticipated amendments to labour law

23 September 2025 1 min read

By Sara Leitão

At a glance

  • The government has presented a draft bill on labour law reform – Trabalho XXI.
  • The bill introduces significant changes to labour regulations, including the reversal of certain measures contained in the Decent Work Agenda approved in 2023. 

The government has presented a draft bill on labour law reform – Trabalho XXI – which introduces significant changes to labour regulations, including the reversal of certain measures contained in the Decent Work Agenda approved in 2023. 

Among the most relevant changes are amendments to the regime governing parental leave and parental protection, including adjustments to initial parental leave, exclusive paternity leave, breastfeeding leave, and flexible working hours for employees with family responsibilities.

Amendments are also foreseen regarding the duration of fixed-term contracts, flexible working time arrangements, absences, and vacation.

Further changes are proposed to the regime on the waiver of labour rights by employees and to the rules on termination of employment contracts. These include, in particular: the revocation of the prohibition on outsourcing following a redundancy dismissal; changes to the dismissal procedure for disciplinary reasons in companies with up to 249 employees; and revised consequences for unlawful dismissal. 

The proposal is presently under discussion, and it is not at this stage possible to determine either the timeframe for its approval or the definitive scope of the amendments.