Longer Hours, Easier Layoffs? Portugal's Labour Shake-Up Faces Backlash

The government’s plan to loosen several cornerstones of Portugal’s labour code has landed in Parliament, and criticism erupted within hours. António Filipe, one of the most seasoned deputies on the left, labelled the proposal a “historic setback,” arguing it risks unravelling protections that Portuguese workers fought decades to secure. His warning crystallises the tension surrounding changes that could reshape how long people work, how easily they can be dismissed, and how collective bargaining functions.

A draft that rewrites the rules

Even before the text was formally delivered, leaked excerpts showed the executive wants to expand the maximum daily schedule, trim overtime pay in certain sectors and make fixed-term contracts easier to renew. Supporters inside the cabinet insist the package merely updates a system designed for the 1990s, but detractors see a blueprint that will tilt the balance of power toward employers. The government also proposes to streamline procedures for collective dismissals, a move it argues will attract foreign investment by clarifying costs upfront.

Why António Filipe fears a “historic setback”

Filipe, a constitutional scholar turned lawmaker, reminded reporters that Portugal only fully entrenched many worker safeguards after the 1974 Revolution. Rolling them back, he said, would break with a social-democratic consensus that has guided policy since EU accession. He singled out the plan to widen the reference period for calculating the average working week, claiming it could normalise longer shifts without raising pay. In his reading, the initiative revives ideas first floated during the post-crisis austerity years, ideas Parliament eventually rejected once the economy stabilised.

Employers applaud, unions mobilise

Business federations, especially those representing tourism and information technology, greeted the government’s stance as “modern and pragmatic.” They argue Portugal cannot compete with Northern Europe unless companies gain more flexibility to staff projects that surge and ebb. Major unions took the opposite view, calling country-wide workplace meetings and warning of street protests if the majority presses ahead. The General Confederation of Portuguese Workers said it is ready to schedule a general strike if the bill survives its committee phase without substantial amendments.

European context matters

Lisbon’s initiative arrives as Spain caps internships and France tightens rules on short contracts, illustrating that European labour law is hardly converging in a single direction. Analysts note that Portugal already ranks among the bloc’s top five countries for temporary employment, making further liberalisation a politically risky bet. The government counters that the updated code would still be stricter than Germany’s on dismissal costs, suggesting fears of a “race to the bottom” are overstated.

Parliamentary arithmetic and the road ahead

With the ruling party holding only a slim plurality, passage is not guaranteed. Filipe’s remarks signal that left-wing parties will combine forces to extract concessions, perhaps on overtime thresholds or duration limits for short contracts. Centrists appear open to negotiation but seek clarity on how the reforms will interact with EU directives on work-life balance. The first committee hearings start next week, and amendments are expected well into December. For citizens worried about their schedules and pay cheques, the coming weeks will reveal whether Portugal moves toward a freer labour market or reins in what critics call a dangerous deregulation drive.