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News | 2025-10-31

Labour RoundUp | October 2025

TELLES' Labour RoundUp is a monthly publication that highlights relevant legal trends and issues impacting the labour market in Portugal.

In this edition, covering October 2025, the following topics are highlighted:

  • The extension of tax benefits applicable to performance bonuses, productivity bonuses, profit sharing or gratuities awarded to employees, within the scope of the State Budget Proposal for 2026 (POE2026).
  • The main amendments recently introduced to the Immigration Law which defines the legal regime governing the entry, stay, departure and removal of foreigners from the country.

A summary analysis of two judgments addressing relevant labour matters is also presented, namely:

  • The Lisbon Court of Appeal ruled that a non-competition agreement between an employee and their employer, which included variable monthly compensation, was valid.
  • The Supreme Court of Justice ruled that dismissed employees who retire before a judgment declaring their dismissal unlawful becomes final are always entitled to compensation, since reinstatement is no longer possible. This decision emphasises that, when calculating compensation, the length of service should be limited to the date of retirement, even if the court decision occurs later.

The publication also includes a summary of the latest legislative updates.

Once again, the Labour and Social Security team at TELLES is working with clients to help them manage their employees and anticipate and plan for the challenges of labour relations in a changing world.

You can access the October 2025 edition of Labour RoundUp below.

Labour RoundUp | October 2025

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