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The Committee notes the replies provided by the Government to its 2008 observation. It further notes the remarks by the General Workers’ Union (UGT) and the Confederation of Portuguese Tourism (CTP).

Parts I and II of the Convention. Improvement of standards of living. Article 2. The Committee notes the measures taken in the context of the global crisis to boost the economy, investments and employment. Various social policy priorities were identified within the Major Planning Options 2010–13 with an aim to combat social inequalities, strengthen social security and improve social protection. The Government indicates that measures taken between June 2008 and May 2010 to support the improvement of standards of living include: a tripartite agreement establishing the increase of minimum monthly wages up to €500 in 2011, the updating of family allowance values and pensions, and the extended duration of compulsory education. Various measures were taken in the framework of the Initiative for Investment and Employment and the Initiative for Employment 2010 which, inter alia, were aimed at promoting employment and vocational training for the unemployed and youth and at increasing income support for the unemployed. The UGT indicates that the December 2006 tripartite agreement establishing the minimum monthly wage increase had a positive impact on the fight against poverty, but its impact was minimized by the economic crisis and the new policies adopted to combat its effects. The CTP refers to the social security legislation that may limit employment promotion and suggest that some matters might be renegotiated through a tripartite agreement to better take into account the current socio-economic framework. The Committee invites the Government to provide, in its next report, an evaluation of the manner in which “the improvement of standards of living”, as required by Article 2 of the Convention, has been taken into account in the social policies pursued in the context of the economic and financial crisis.

Part IV. Remuneration of workers. In reply to the 2008 observation, the Government indicates that Act No. 7 of 12 February 2009 reviewed some provisions of the Labour Code regarding, amongst others, discrimination with regard to employment, working time, the limitation of the use of temporary employment contracts, access to education and vocational training for young workers and labour law enforcement. As regards the measures adopted to apply Article 12 of the Convention, the Government refers to section 279 of the Labour Code, as amended by Act No. 7 of 12 February 2009. Paragraph 1 of this section provides that, during the duration of the contract of employment, the employer may not make a deduction from the worker’s remuneration for the repayment of a loan made by the employer to the worker, nor any deduction from the worker’s remuneration, except in the case envisaged in section 279(2)(f) of the Labour Code. The Committee further notes that, in conformity with section 279(3), deductions allowed by section 279(2)(f) cannot exceed, in total, one sixth of the remuneration. The Committee requests the Government to indicate in its next report the manner in which competent authorities or tribunals have given decisions involving questions of principle relating to the application of section 279 of the Labour Code in accordance with Article 12 of the Convention.

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The Committee notes the detailed legislative information attached to the Government’s report for the period June 2003 to May 2008, including observations from the General Confederation of Portuguese Workers (CGTP-IN).

Parts I and II of the Convention. Improvement of standards of living. Article 2. The CGTP-IN observes, among other things, that standards of living, measured in terms of per capita GDP, remained stable between 2002 and 2006, with an improvement being recorded in 2007. Economic policies have hardly contributed to improving the well-being of the population. The increase in the standard of living was clearly lower than for the rest of the European Union. The CGTP-IN claims that when general public policies were formulated, their impact on the well-being of the population was not taken into consideration, with financial factors having been the key consideration. The Committee reiterates its interest in examining a summary evaluation of the manner in which it is ensured that “the improvement of standards of living” has been regarded as “the principal objective in the planning of economic development”.

Part IV. Remuneration of workers. In response to the comments which have been made since the ratification of the Convention on the regulation of the maximum amounts and the manner of repayment of advances on wages, the Government indicates in its report that the national legislation has not been amended in this respect. The CGTP-IN confirms that the Labour Code does not provide for measures relating to advances on wages as required by Article 12 of the Convention. The Government adds that outside the period covered by the report, an agreement was reached between employers’ confederations and a trade union confederation on the revision of the labour legislation, and these measures were incorporated into a legislative proposal to amend the Labour Code. The Government states that it will supply detailed information in its next report on the legislative amendment and the measures adopted to improve the aspects of the labour market situation referred to by the CGTP-IN – in particular, discrimination, growth of collective recruitment, reducing the instability of employment, combating hidden self-employment, boosting vocational training, academic and vocational qualifications of minors and the effectiveness of labour legislation. The Committee hopes that the legislative reform in progress has taken account of the comments which have been made since the ratification of the Convention. The Committee hopes that the Government will also be in a position to provide information on the measures taken to: (a) regulate the maximum amounts and manner of repayment of advances on wages; (b) limit the amount of advances which may be made to a worker in consideration of his taking up employment; and (c) establish that any advance in excess of the amount laid down by the competent authority shall be legally irrecoverable and may not be recovered by the withholding of amounts of pay due to the worker at a later date.

[The Government is asked to reply in detail to the present comments in 2010.]

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1. Parts I and II of the Convention. Improvement of standards of living. The Committee notes the Government’s report, which enumerates the principal legislative measures adopted during the period June 1998-May 2003 and contains statistical data on the inspections carried out in relation to wages, discrimination and work by foreign nationals. It requests the Government to continue providing information which allows the Committee to have an overview of the manner in which the "improvement of standards of living" is regarded as "the principal objective in the planning of economic development" (Article 2 of the Convention).

2. Part IV. Remuneration of workers. In reply to its previous comments, the Government indicates that it has not amended the legislation regarding advances on wages. The Committee notes that section 270 of the Labour Code, adopted in 2003, reproduces the provisions of section 95 of Legislative Decree No. 49 408 of 1969. In this respect, the Committee requests the Government to provide information in its next report on the measures adopted or envisaged to regulate advances on wages in accordance with the Convention.

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The Committee notes the Government's report as well as the abundant documentation annexed thereto.

Article 12 of the Convention. With reference to its earlier comments, the Committee notes the Government's indication that the comments of the Committee have been brought to the attention of the competent services, so as to be taken into account in the elaboration of a draft text regarding the concept of remuneration provided for in the Strategic Concertation Agreement for 1996-1999, concluded with the Standing Committee on Social Concertation of the Social and Economic Council. The Committee hopes the draft text cited above will meet the requirements of these provisions of the Convention and requests the Government to transmit a copy of the final version of the abovementioned text as soon as it has been adopted.

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Article 12 of the Convention. With reference to its previous comments, the Committee notes the explanations provided by the Government. The Committee recalls that section 95(2)(f) of the Act respecting Labour Contracts allows deductions from workers' wages by the employer to recover advances on wages and that section 95(3) limits the total amount of certain authorized deductions to be one-sixth of the worker's total wage at most. However, neither of these provisions of the Act specifies the maximum amount of advances on wages which may be granted to workers. Consequently, the Committee hopes that the Government will adopt, as it indicates in the report, the necessary measures to bring the legislation into line with practice and with this Article of the Convention, in particular (i) limiting the amount of advances, including that which may be made to a worker in consideration of his taking up employment, and (ii) establishing that any advance in excess of the amount laid down by the competent authority should be legally irrecoverable and may not be recovered by the withholding of amounts of pay due to the worker at a later date.

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The Committee takes note of the Government's report. The Committee recalls that, in its last comment, it took note of the summary of the comments made by the Confederation of Portuguese Industry (CIP), which it was unable to examine fully because it had not received the original text. The Committee notes that, in a letter of 19 June 1990, the CIP refers to its previous comments on the application of this Convention. However, since the Government has not sent the text of the CIP's comments, the Committee cannot refer to them. The Committee hopes that the Government will provide the text of the CIP's comments with its next report.

Article 12 of the Convention. With reference to its previous comments, the Committee notes the explanations provided by the Government. With regard to paragraphs 1 and 3 of this Article, it recalls that paragraph 1 stipulates that the maximum amounts of advances on wages shall be regulated by the competent authority. Section 95(1) Act respecting labour contracts establishes the general principle that there shall be no withholding of or deductions from workers' wages by the employer to recover any loans that the employer may have extended to workers; section 95(2) of the Act establishes the exceptions to this principle and section 95(3) provides that the total amount of certain authorised deductions may not exceed one sixth of the worker's total wage. However, neither this provision of the Act nor the courts' interpretation specify the maximum amount of advances on wages which may be granted to workers, or the manner of repayment. Consequently, the Committee hopes that the Government will adopt the necessary measures to: (a) bring the legislation into line with practice as regards limiting the amount of advances which may be made to a worker in consideration of his taking up employment (paragraph 2 of this Article of the Convention); (b) establish the maximum amounts and manner of repayment of advances on wages (paragraph 1 of this Article of the Convention); and (c) establish that any advance in excess of the amount laid down by the competent authority shall be legally irrecoverable and may not be recovered by the withholding of amounts of pay due to the worker at a later date (paragraph 3 of this Article of the Convention).

Article 15. The Committee takes note of the information supplied in the Government's report.

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The Committee notes the explanations provided by the Government in its report.

Article 12 of the Convention. The Committee notes the explanations contained in the Government's report stating that paragraph 2 of this Article is applied in practice. The Committee hopes that the Government will take the necessary measures to bring the legislation into conformity with practice.

With regard to paragraphs 1 and 3 of this Article, the Committee noted in its previous comments that the national legislation did not contain provisions restricting the maximum amounts and manner of repayment of advances on wages or prescribing that any advance in excess of these amounts was irrecoverable. The Committee notes in this connection that under section 95(3) of Legislative Decree No. 49-408 the amount that may be deducted from wages is restricted for any single period of payment but that this does not restrict the total amount that could be deducted for several payment periods. The Committee therefore hopes that the Government will indicate the measures envisaged with a view to giving effect to these provisions of the above Article.

Article 15. The Committee notes the various legislative texts concerning the employment and training of young persons. The Committee requests the Government to continue supplying information on measures taken in favour of young persons.

The Committee notes that the Confederation of Portuguese Industry (CIP) has made observations concerning the application of this Convention, but that copies of these observations have not been received. Since the content of these observations is not clear from the summary that the Government gives in its report, the Committee requests the Government to transmit copies of them. Regarding the comments on minimum wage fixing, the Committee requests the Government to refer to its comments on Convention No. 131.