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Repetition Legislative developments. Application of the Convention in practice. In reply to previous comments regarding the evaluation of the impact of the reduction of termination benefits by the legislative reforms of 2011 in terms of maintaining and creating employment, the Government explains that the 2011 labour reform established a transitional regime; hence, the impact of the legislative amendments on reducing the amount of termination benefits is not immediate. The Government adds that, according to the data available, there seems to be a slight decrease in terminations of employment contracts since the beginning of 2012. Moreover, the most recent employment statistics show that the employment rate has increased over the past four quarters (2013–14), which indicates an upward trend in employment after four consecutive quarters of decline (2012–13). Furthermore, the Government enumerates in its report the most significant amendments to legal regimes regarding termination of employment contracts, resulting from an adjustment process initiated in 2011. In its observations, the CIP reiterates some of the points previously made concerning the fact that Portuguese legislation regulates certain aspects of employment contracts’ termination more strictly and in greater detail than the Convention. The IOE and the CIP referred to important legal reforms adopted following the Tripartite Agreement for Competitiveness and Employment of March 2011 and the Commitment to Growth, Competitiveness and Employment of January 2012. The CGTP–IN expresses its concern in view of the increased undermining of workers’ protection from dismissal and refers to some of the latest legislative developments which have resulted in a new reduction of the compensation for termination of the employment contract, namely Act No. 23/2012 of 25 June 2012 and Act No. 69/2013 of 30 August 2013. Both the CGTP–IN and the UGT criticize the amendments resulting in new dismissal criteria, particularly in the case of extinction of the work position. The Government refers to the judicial decision whereby a number of sections of the Labour Code were declared unconstitutional, by reason of infringing the prohibition to dismiss without fair cause established in article 53 of the Constitution. In its decision No. 62/2013, the Constitutional Court found that the modifications introduced into section 368(2) of the Labour Code by Act No. 23/2012 of 25 June 2012 failed to provide the necessary normative guidance as to the criteria that should govern the employer’s decision. That section allowed the employer the right to define the criterion to be applied for making a post redundant in a context when there were other posts with identical functional content – hence eliminating the application of the seniority criterion. As regards the modified version of section 375(1)(d) of the Labour Code which eliminated the obligation to transfer the employee to another suitable position in case of extinction of the work position and dismissal for unsuitability, the Constitutional Court found that dismissal on the grounds of a worker’s unsuitability could only occur if no alternative was available. The Committee requests the Government to continue to provide information evaluating the impact of legislative reforms, in terms of maintaining and creating employment. Article 2(3) of the Convention. Adequate safeguards in case of recourse to contracts of employment for a specified period. The Government indicates that in order to ensure the exceptional nature of the fixed-term contract regime, the cases in which such contract should be considered as and converted into a permanent contract are determined by law, namely when concluded with the intent to evade the regulations which are applicable to permanent contracts or where the maximum duration of the contract or the maximum number of renewals has been exceeded (section 147 of the Labour Code). The Government also provided statistical information showing that the percentage of workers with fixed-term contracts in 2013 has suffered a slight increase in comparison with 2012 (0.9 percentage point). The Committee takes note of the judicial decisions transmitted by the Government in connection with the protection of workers who hold fixed-term employment contracts. The Committee requests the Government to continue to provide information on the manner in which the protection provided by the Convention is ensured to workers who have concluded an employment contract for a specified period of time and the number of workers affected by these measures. Article 2(5). Micro-enterprises. The Government indicates that the procedure for dismissal in micro-enterprises is regulated by the same provisions applicable to other enterprises, except for the intervention of work councils in the procedure of dismissal; hence the amendments to section 366(1) of the Labour Code concerning the investigation to be conducted by the employer, in reply to a disciplinary notice for the purposes of evidence gathering, are now applicable to micro-enterprises. The Committee requests the Government to continue to provide information on the effective application of the Convention to micro-enterprises. Article 4. Justification for termination. The CGTP–IN recalls that the legislative amendments resulting in the elimination of the obligation of the employer to follow a specific criterion (seniority based) to select employees to be retrenched and to transfer the employee to another suitable position, in case of a redundant position and dismissal for unsuitability, were declared unconstitutional by the Constitutional Court (Decision No. 602/2013). Following the decision, the original criterion was altered by Act No. 27/2014 of May 2014. Both the UGT and the CGTP–IN deplore the fact that the criterion established by Act No. 27/2014 placing performance, qualifications, and labour costs above the seniority criterion may be used at the employer’s discretion. The Committee requests the Government to provide examples of the application of the legislative amendments of 2014 regarding the valid reason for termination of employment, including copies of the leading judicial decisions in this regard. Article 8. Right to appeal. Time limit for the appeal procedure. In reply to previous comments, the Committee notes the detailed statistical information appended to the Government’s report concerning the number, outcome and average length of proceedings for 2011 and 2012, both at first instance and on appeal. The Committee recalls the concerns of the CGTP–IN regarding the reduction of the time limit for bringing a judicial claim for unfair dismissal from one year to 60 days, as established by the revised Labour Code. The Committee again requests the Government to provide information on the practical application of the new legislative provisions regulating claims for unfair dismissal. It also requests the Government to provide information on the roles of mediation and arbitration in resolving issues related to the Convention. Article 10. Compensation. In reply to the concern raised by the CGTP–IN with regard to the relaxed procedural requirements and the effects of unlawful dismissal introduced by the 2009 Labour Code, the Government refers to the modifications introduced by Act No. 23/2012 of June 2012 regarding the investigation to be conducted by the employer following a disciplinary notice, the effects of unlawful dismissal, and compensation in lieu of reinstatement. The Committee requests the Government to continue to provide information concerning Article 10 of the Convention, including examples of court rulings giving effect to this provision.
The Committee notes the Government’s detailed report for the period ending May 2006, and particularly the information on the laws and regulations adopted in August 2003 and July 2006 with a view to giving effect to the provisions of the Convention. The report also includes the comments of the General Union of Workers (UGT) and the Portuguese Confederation of Tourism (CTP). The UGT summarizes the national provisions establishing protection against termination of employment without a valid reason and expresses concern that the frequent use of fixed-term contracts is contributing to precarity among workers. The Portuguese Confederation of Tourism observes that, in its view, the national provisions appear to be in conformity with the principles of the Convention, although the provisions of the Labour Code appear to be outmoded in a globalized economy in view of their lack of flexibility, which does not encourage the economic development of enterprises. The Committee notes with interest that, in giving effect to the Convention, the new labour legislation has maintained a balance between flexibility and security for enterprises and workers. With reference to section 418 of the Labour Code respecting micro-enterprises, it requests the Government to indicate the manner in which compliance with the provisions of the Convention relating to the procedure for termination of employment is ensured in micro-enterprises. The Committee hopes that the Government’s next report will contain updated information on the application of the Convention in practice, and particularly on the prevalence of fixed-term contracts (sections 128 et seq. of the Labour Code), and further examples of court decisions relating to matters of principle concerning the application of the Convention (Parts IV and V of the report form).
The Committee notes the information contained in the Government’s report for the period 1 June 1997 to 30 June 1999. It notes in particular the information supplied in response to previous comments pertaining to Article 2, paragraphs 2(b), 4, 5 and 6, and Article 6, paragraph 2.
Article 2, paragraph 2, of the Convention. In response to previous comments, the Government states that it has revised the penalties for abuse of fixed-term contracts intended to circumvent the legal protections pertaining to termination of employment and referred to various laws enacted for that purpose. The Government also states that monitoring of types of contracts has been set as a priority for the Inspectorate-General of Labour. A draft law was also introduced to combat fictitious self-employment, but was not approved. The Committee notes with interest these efforts to ensure that the Convention is applied in practice, and would appreciate receiving further information on their outcome.
With reference to its observation, the Committee would be grateful if the Government would provide additional information in its next report on the following points.
Article 2, paragraph 2(b), of the Convention. The Committee notes the Government's statement in its report that no category of employed persons is excluded from the scope of the Convention. Nevertheless, it notes that under section 55 of Legislative Decree No. 64-A/89, workers serving a period of probation do not enjoy the protection provided for under the Convention, since termination of the employment contract by either party requires no justification during this period and gives no entitlement to compensation. Moreover, the Committee notes that the period of probation is 60 days for indefinite contracts, but collective agreements or individual labour contracts can envisage a period of probation exceeding 60 days and, in certain cases, a period of probation up to six months. The Committee recalls in this regard that, under the terms of this provision of the Convention, a Member may exclude from all or some of the provisions of this Convention workers serving a period of probation "determined in advance and of reasonable duration".
Article 2, paragraphs 4 and 6. The Committee requests the Government to describe the provisions which give effect to the Convention in the civil service or which guarantee its employees a protection at least equivalent to that afforded under the Convention.
Article 6, paragraph 2. The Committee notes that, under section 3(1) of Legislative Decree No. 398/83, the employment contract is suspended until the recovery of the worker in the event of a temporary absence from work because of illness or injury which exceeds one month. Please specify if any limitations are placed to the application of paragraph 1 when the absence of the worker for reasons of illness or injury exceeds a period of one month and the employment contract is suspended.
The Committee notes with interest the Government's first report in respect of the application of the Convention, which contains detailed information and the comments made by the General Confederation of Portuguese Workers (CGTP). The CGTP considers that, whilst the legislation is, in general, in conformity with the provisions of the Convention, the supervision of its application in practice is inadequate. The CGTP, in particular, states that a large number of fixed-term contracts are being concluded for permanent positions, which is an infringement of the legislation, for the purpose of evading the regulations which are applicable to termination of contracts. The CGTP also expresses its concern that purported contracts for services are being concluded to conceal a salaried employment relationship as well as the existence of illegal or clandestine labour.
In its response, the Government states that it acknowledges the existence of numerous situations of illegal labour which must be eradicated. In this respect, the Government refers to the Agreement on Concerted Strategies concluded in December 1996 with the social partners (which the CGTP refused to sign) which includes a chapter on legislative measures including prevention and supervision to be adopted in order to eradicate different forms of illegal labour. The Government states that the legislative measures envisaged under this Agreement are in the drafting stage. The Committee would be grateful if the Government could communicate the texts of such legislative measures as soon as they are adopted.
The Committee would be grateful if the Government would provide detailed information in its next report in respect of any new measures which may have been adopted in order to ensure fuller conformity with the provisions of the Convention in practice, in particular to ensure the provision of adequate safeguards, under Article 2, paragraph 3, of the Convention, against recourse to contracts of employment for a specified period of time, the aim of which is to avoid the protection resulting from the Convention.
A request regarding certain points is being addressed directly to the Government.