Portugal’s new labour legislation has passed through parliament, been promulgated by the president and comes into force on 1 August.

Banks of hours, 50% cuts in overtime payments, fewer public holidays and no extra holidays for workers without absences are some of the main alterations.

- Individual and group bank or hours:

Means workers can do up to two hours extra work a day, up to a maximum of 150 hours a year. Group banks cover an entire group, rather than just one individual and the hours are used on account.

- Overtime payments halved:

The first hour of overtime will be paid at 25% more than normal, instead of the current 50% and 37.5% for further hours, instead of the current 75%.

If the overtime is on a weekend or public holiday, the worker gets an extra 50% rather than the 100% up until now.

- Overtime will no longer also give the worker the right to an extra 15 minutes time off for every hour worked.

- Two religious and two civil public holidays disappear: Corpus Christi (a moveable feast) 15 August, 5 October and 1 December.

- If firms decide to close on a Monday or Friday because of a public holiday on the Tuesday or Thursday, this day will be discounted from workers’ holidays even if they do not agree with the closure.

- Elimination of extra days’ holidays for workers who were not absent the previous year. Paid holidays are therefore reduced from 25 to 22 days a year.

- Easier dismissal with companies having to pay 20 days wages for every year of service and the base salary cannot be higher than 20 minimum salaries.

- Employers can dismiss workers when their post disappears or when they cannot adapt to new conditions.