Expands leave entitlements
From 1st May 2023, changes have been made to Portugal’s labour law to expand leave and teleworking requests for parents of disabled children.
The Decent Work Agenda project is being implemented to cover a wide range of topics, including employment contracts, severance, collective bargaining and leaves. Some of the main changes include:
Statutory leave is increasing from 5 days to 20 consecutive days for the death of a spouse, child or stepchild. Leave following the death of a parent or sibling has also increased to 5 consecutive days.
Leave entitlement for fathers has increased from 20 to 28 days, which has to be taken within 42 days of the birth of their child. The paternity leave can be used as the father wishes (either in a single period or taken in various periods), however this does not apply to the five days immediately following birth, which must be taken consecutively. Once the 28 days have been exhausted, the father is entitled to 7 additional days of parental leave, granted that he takes them within the 42 days of initial parental leave of the mother. These 7 days are not required to be taken consecutively.
Where a child under the age of 15 is adopted, the secondary parent is now entitled to the exclusive parental leave entitlement due to the father, under the Parental Leave scheme. Adopting parents are also entitled to take 30 days of parental leave to aid with the transition.
From 1st May 2023, employees living with a child under 3 years of age or a child with a disability, cancer or chronic illness (regardless of age), are entitled to request a telework arrangement. Employers are required to allow this if they have the ability to accommodate the request.
Introduces Neonatal Care Leave
Whilst the bill has received Royal Assent, the benefits and processes are yet to be entered into legislation.
Once the legislation is passed, employed parents will be entitled to up to 12 weeks of paid Neonatal Care Leave, if their child is required to receive neonatal care of at least 7 days following birth. This leave is in addition to maternity, paternity, parental and shared parental leave. The employee must have been employed for at least 26 continuous weeks to be eligible. The amount payable is set at the statutory limit that applies to either statutory maternity and paternity pay or the employee’s normal salary - whichever is lower.
All other rights of employment remain in effective during this leave.
Great Prayer Day removed as holiday
The Australian Taxation Office has updated Superannuation rates and thresholds for 2023/2024
From 2024, the Great Prayer Day will be considered a normal working day and normal terms and conditions for a working day will apply.
Employment terms and conditions on pay and other special terms of employment relating to public holidays that appear in legislation, collective bargaining agreements and individual agreements, will no longer apply.
Both employees who receive a fixed monthly salary and those whose working hours are set to increase because of the abolition of the Great Prayer Day will be entitled to compensation of a 0.45% increase in their annual salary.
Increase in travel allowance
From 2024, the tax-free mileage reimbursement allowance will increase from €0.21 to €0.22 per kilometre.
This change follows an increase in January 2023 from €0.19 to €0.21 per kilometre. Anything reimbursed above this amount will be classed as salary and will be taxable.
Minimum wage increase
From 1st July 2023, the minimum wage for employees aged over 21 will increase.
This increase breakdown is as follows:
- Daily – €92.08
- Weekly – €460.40
- Monthly – €1,995.00
These amounts include the 8% holiday allowance.
Employers to ensure medical insurance provided to foreign employees now meets the mandatory minimum coverage of SGD $60,000.