Amid high market uncertainty and volatility, high energy price pressures, erosion of household’s purchasing power and tightening financing conditions, the outlook for 2023 is not a positive one. According to the more optimistic stances, (weak) economic growth is only expected for 2023’s second semester and provided that the inflation escalation reduces at the expected rate (which is increasingly less likely to happen).
It is within this context that the Portuguese Parliament is discussing significant changes to labour laws that, according to the information available to date, will lead to higher labour costs for companies, for instance concerning overtime payments and severance payments for the termination of term employment contracts.
The labour market, despite a slight inversion, continues to perform strongly, with surprisingly low unemployment levels considering the underlying economic situation.
In light of the above one may conclude that 2023 will be a particularly challenging year as far as human resources management is concerned. Therefore, it is of the utmost importance to be aware of the already available legal data, as well as of the changes to the labour laws that although still under discussion, given the current political environment, we dare to state that will shortly be approved and enter into force.
Read everything about these changes for 2023 here.
For more information or support contact our Employment partner Hugo Martins Braz – hugomartinsbraz@valadascoriel.com
or the of counsel Tiago Lopes Fernandez – tiagolopesfernandez@valadascoriel.com.
