1. OECD Conference on New Forms of Work November 7th 2018, Paris
Coordinated policy approach to new forms of work Country perspective - Portugal
Country Perspective
Coordinated policy approach to new forms of work in Portugal

2. OECD Conference on New Forms of Work
November 7th 2018, Paris
Background: segmentation and overall low employment quality as a structural feature of the Portuguese labour market
Share of temporary workers is above 22% (33% in the private sector and over 65% among young workers) and is mostly involuntary
60% of deferred requests for unemployment benefits result from the expiry of fixed-term contracts
Average wages of workers on open-ended contracts are about 30% higher than those of workers on temporary contracts.
Strategic policy goal: reducing labour market segmentation and improving the quality of employment
Coordinated policy approach to reduce segmentation and combat false self-employment and other non- standard forms of employment: labour law, labour inspectorate, contributions to Social Security, ALMPs
Country Perspective
Coordinated policy approach to new forms of work in Portugal

3. OECD Conference on New Forms of Work
November 7th 2018, Paris
Integrated and coordinated policy approach
Reorientation of ALMPs
Extraordinary regularization of precarious employment contracts in civil service
Strengthening the capacity of the labour inspectorate
Revision of the legal mechanism to clamp down false self-employment
New regime for self-employed workers
Tripartite agreement to Combat Precariousness, Reduce Labour Market Segmentation and Promote Collective Bargaining
Country Perspective
Coordinated policy approach to new forms of work in Portugal

4. OECD Conference on New Forms of Work
November 7th 2018, Paris
Reorientation of ALMPs (hiring support and professional traineeships): improved targeting (youth and LTU) and stronger focus on the promotion of permanent employment
Extraordinary regularization of precarious employment contracts in civil service
Measures to strengthen the capacity of the labour inspectorate: 122 additional labour inspectors, thus increasing the number of inspectors by about 40%; data share between the labour inspectorate, the tax authority and social security
Revision of the legal mechanism that enables the labour inspectorate to clamp down false self- employment (now applicable to other forms of under declared work, e.g. traineeships)
Country Perspective
Coordinated policy approach to new forms of work in Portugal

5. OECD Conference on New Forms of Work
November 7th 2018, Paris
New regime for self-employed workers
Better access to social protection for self-employed workers: sickness benefits, parental protection and unemployment insurance are now closer to the benefit schemes applicable to (standard) employees
Economically dependent self-employed worker (a fairly recent worker category between “employee” and “self-employed”): the threshold to define economic dependence was decreased from 80% to 50%, thus increasing the number of workers who may have access to benefits due to termination of employment and the number of contracting entities that assume responsibility for paying contributions to finance this protection (the contribution rate applicable to the contracting entities increases when the economic dependency is higher)
More balanced distribution of contributory effort (i.e. financing of social protection) between self- employed workers (with strong or total economic dependence) from a single entity and contracting entities
Country Perspective
Coordinated policy approach to new forms of work in Portugal

6. OECD Conference on New Forms of Work
November 7th 2018, Paris
6. Tripartite agreement to Combat Precariousness, Reduce Labour Market Segmentation and Promote Collective Bargaining
Three strategic components:
#1 Reducing labour market segmentation and tackling precariousness
#2 Promoting a greater dynamism of collective bargaining
#3 Strengthening the means and instruments of labour market regulation
Policy instruments:
Council of Ministers Resolution no. 72/2018, approves the Action Programme to Combat Precariousness and to Promote Collective Bargaining
Draft Law no. 136/XIII, approved in general by the Parliament, subject to further discussion and approval in specific terms
Country Perspective
Coordinated policy approach to new forms of work in Portugal

7. OECD Conference on New Forms of Work
November 7th 2018, Paris
Tripartite agreement to Combat Precariousness, Reduce Labour Market Segmentation and Promote Collective Bargaining Reducing labour market segmentation and tackling precariousness - main action lines: #1 Limiting the legal framework of temporary contracts and promoting open-ended hires #2 Inducing a change in behavior in order to prevent the excessive use of temporary contracts and to stimulate transitions from temporary to permanent employment #3 Strengthening the protection of temporary agency work workers #4 Discouraging informal or under-declared work and promoting open-ended hiring in seasonal economic sectors
Country Perspective
Coordinated policy approach to new forms of work in Portugal

8. OECD Conference on New Forms of Work
November 7th 2018, Paris
5. Tripartite agreement to Combat Precariousness, Reduce Labour Market Segmentation and Promote Collective Bargaining
#1 Limiting the legal framework of temporary contracts promoting open-ended hires
Reduce the maximum accumulated duration of FCTs and establishing that the maximum accumulated duration of renewals cannot exceed the initial contract period
Revoking the norm that allows hiring 1st time jobseekers and LTU on FCTs for permanent jobs (admitting it exclusively for the very LTU)
Establishing that the applicable trial period for open-ended contracts with 1st time jobseekers and LTU is 180 days (above the general rule of 90 days)
Country Perspective
Coordinated policy approach to new forms of work in Portugal

9. OECD Conference on New Forms of Work
November 7th 2018, Paris
5. Tripartite agreement to Combat Precariousness, Reduce Labour Market Segmentation and Promote Collective Bargaining
#2 Inducing a change in behavior in order to prevent the excessive use of temporary contracts and to stimulate transitions from temporary to permanent employment
Increasing contributions of employers with excessive turnover based on an excessive use of FCTs (compared to sector level)
Strengthening positive incentives to stimulate the conversion rate (financial support to convert FCTs on open-ended contracts)
Country Perspective
Coordinated policy approach to new forms of work in Portugal

10. OECD Conference on New Forms of Work
November 7th 2018, Paris
5. Tripartite agreement to Combat Precariousness, Reduce Labour Market Segmentation and Promote Collective Bargaining
#3 Strengthening the protection of temporary agency work workers
Setting limits on the number of renewals of TWA contracts (current framework allows for weekly or even daily renewals)
Reviewing the period of application of collective bargaining rules to TWA workers (today they are covered by them only after 60 days of work in the user company)
Increasing transparency in the use of TWA work, making it compulsory to provide information to the TWA worker on the grounds underlying the conclusion of a contract of use between the client company and the TWA
Country Perspective
Coordinated policy approach to new forms of work in Portugal

11. OECD Conference on New Forms of Work
November 7th 2018, Paris
Tripartite agreement to Combat Precariousness, Reduce Labour Market Segmentation and Promote Collective Bargaining
#4 Discouraging informal or under-declared work and promoting open-ended hiring in seasonal economic sectors, namely by revising the legal framework of very short-term fixed-term contracts
Very short-term fixed-term contracts were created a decade ago precisely to combat informal or under-declared work in two of the most seasonal sectors of our economy: agriculture and tourism.
Now, while preserving the maximum duration of very short-term fixed-term contracts (70 days per year), it will be possible to hire under these contracts for a continuous period of 35 days (instead of the current 15 days) to more properly cover the needs of employers of different economic sectors where certain seasonal peaks of activity cannot be addressed by the basic structure of the employer
Country Perspective
Coordinated policy approach to new forms of work in Portugal