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Articles | 2017-08-02

Legislative Changes in Labour Law / July 2017

Lawº 55/2017, dated as of July 17th:

This Law proceeds to the second amendment to Law n.º 107/2009, of September 14th, and to the fifth amendment to the Labour Procedure Code, approved by Decree-Law n.º 480/99 of November 9th.

Indeed, this law extends the scope of the Special Action to Recognize the Existence of a Labour Contract (“Ação de Reconhecimento da Existência de um Contrato de Trabalho”) and the procedural mechanisms to combat the concealment of subordinate labour relations.

Thus, in addition to situations of false “green receipts”, situations of undeclared work, false internships and false volunteers were included in the scope of the Special Action to Recognize the Existence of Labour Contract.

In addition, a precautionary procedure for suspension of dismissal was created, which specifically aims to suspend the dismissal decision that occurs after the inspection notice issued by the ACT inspector, until the final decision on the Special Action to Recognize the Existence of Labour Contract, increasing the guarantees of affected employees.
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