Management

The Dignified Work Agenda

By transposing community directives approved in 2019 into national law, the Dignified Work Agenda introduces changes to contracts, dismissals, and workers’ rights. This legislation encompasses approximately 70 measures aimed at improving working conditions, promoting a better work-life balance, and reinforcing the rights of workers. These measures have been in effect since April.

The new legislation addresses various aspects, including combating precariousness, wage valorization, gender equality in the labour market, and encouraging shared family responsibilities. Additionally, the legislation aims to detect irregular situations such as false self-employment or undeclared work by enhancing monitoring mechanisms, including data cross-referencing between entities.

In order to combat precariousness and protect young people’s jobs, temporary fixed-term contracts can only be renewed four times, rather than six, as was the case previously. The duration of these contracts is now capped at four years when the worker is performing the same job.

With regard to the integration of young people into the labour market, the following measures stand out:

  1. The trial period is reduced if the young person to be recruited has already had fixed-term contracts in the same activity, even with another employer;
  2. Professional internships must be remunerated at least 80% of the minimum wage, amounting to €608.00 in 2023.
  3. Internship grants from the Institute of Employment and Vocational Training (IEFP) for graduates increase to €960.00.
  4. Young worker-students (up to 27 years old) can now accumulate family allowance and study grants with their salary.

To discourage dismissals, several measures are also adopted. If a company carries out a collective dismissal or opts for job termination, it is prohibited from outsourcing those tasks for the following 12 months. The compensation for termination of fixed-term or indefinite contracts is increased to 24 days of basic salary and seniority payments per full year of service.

In case of dismissal, the worker cannot waive their entitlement to receive credits related to holiday and Christmas allowances, untaken holidays, and training hours. The only exception is when renouncing these rights is made through a judicial agreement.

Regarding temporary work agencies and platforms, they must have a permanent staff structure and are required to be certified. Individuals who have been convicted of labour offenses cannot be partners, managers, or directors of such agencies.

With regard to workers in digital platforms (such as transport or food delivery), the new law categorizes them as employees, entitling them to all the rights enjoyed by any other worker.

New legislative measures are introduced concerning licenses and work-life balance. The exclusive parental leave for fathers is increased to 28 consecutive days, and there is an increase in the subsidy when both parents equally share parental leaves. From the 120th day onwards, both parents, thus extending its total duration, can use leave part-time.

There are also changes related to the death of a family member. If a spouse passes away, the leave entitlement is extended to 20 days. Additionally, a gestational mourning leave is introduced, with a maximum limit of 3 days.

Parents of children with disabilities, chronic illnesses, or cancer now have the right to telework without requiring employer agreement.

The measures for work-life balance also include an extension of leave and licenses for those who adopt a child or become foster parents.

There are also updates regarding the payment of overtime hours for those who exceed 100 annual hours of extra work. Beyond this limit, the amount to be paid is the hourly wage plus:

50% for the first hour or fraction thereof, and 75% for each subsequent hour or fraction on weekdays;

100% for each hour or fraction on weekly rest days or holidays.

This legislative change also includes additional rights for non-principal informal caregivers, who regularly but not permanently care for dependent individuals while potentially continuing to work.

Individuals who engage in simultaneous professional activities now have the right to:

  • A five-day leave;
  • 15 days of justified absences;
  • Remote work, flexible hours, or part-time work;
  • Protection against dismissal and discrimination in their employment.

Under this law, medical leaves of up to three days can be issued through the SNS 24 (National Health Service hotline) based on a self-declaration of illness, with a commitment of honour. This possibility is limited to two times per year.

The four-day week is also foreseen in the Dignified Work Agenda, which foresees the development of a pilot project.

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