1. Context

The year 2026 was marked by intense debate on labor legislation, but the practical result for companies is, to a large extent, one of continuity: the current Labor Code remains essentially unchanged. At the same time, European deadlines are approaching, and specific changes that require attention are coming into effect. This combination makes the end of 2026 the right time for a structured labor review, allowing companies to reach 2027 with updated contracts, documented internal procedures, and a clear plan for adapting to foreseeable changes.

This note identifies the current state of key legislative initiatives, points to be reviewed in employment contracts and internal procedures — distinguishing duties according to company size — and proposes a set of priorities for 2027. The analysis refers to the date of November 10, 2026.

2. Legislative status at the date of this note

Labor reform «"Work XXI"», which proposed more than one hundred changes to the Labor Code, was Rejected in general by the Assembly of the Republic on June 19, 2026.. None of its measures have come into effect. The Government has publicly stated that the revision of labor legislation will return to Parliament, "in this or another form," but there is currently no new proposal under consideration. For this reason, the reform should not be treated as applicable law: it should only be integrated into company plans when there is a concrete text under discussion.

 

Initiative	Situation as of 10/11/2026	Relevance for companies
"Work XXI" Reform«	Rejected in general (June 19, 2026). Government admits it will resubmit in 2027.	No effect. Monitor for any new proposal.
Pay transparency — Directive (EU) 2023/970	The deadline for transposition ended on 07/06/2026. Draft bill (amendment to Law No. 60/2018) published on 05/08/2026; public consultation concluded; not yet approved.	Immediate preparation: the project foresees the reporting of disparities starting with 50 workers and entry into force without an adaptation period.
Parental leave and continuous work schedule in the private sector	Approved unanimously in a final global vote (October 16, 2026). Awaiting enactment and publication.	Application is intended for licenses initiated on or after January 1, 2027. Review internal schedule rules.
Work on digital platforms — Directive (EU) 2024/2831	Transfer deadline: December 2, 2026. Transfer foreseen in the rejected package; Government indicates it will resume the solutions.	Companies that operate on or use platforms: review contractual models and algorithmic management.
Guaranteed minimum monthly pay 2027	€920 in 2026. A value of €970 is projected for 2027 (social consultation agreement and 2027 State Budget); the decree establishing the amount is still pending.	Update salary tables and personnel cost budgets.
Employment Compensation Fund	Legal deadline for withdrawing funds: 31/12/2026. The government has announced its intention to extend it.	Check your balances and decide how you will use them before the end of the year.
Regulation IA (EU) 2024/1689	Obligations for high-risk employment systems postponed to 02/12/2027 (Regulation (EU) 2026/1744).	Inventory recruitment, evaluation, and monitoring tools.

3. Employment contracts: what to review

The first line of review focuses on the contracts and their annexes. We recommend checking, in particular:

• Duty to inform. Confirm that each worker has received, in writing, the information required by Article 106 of the Labor Code, including, where applicable, the parameters and criteria of the algorithms or artificial intelligence systems that affect decisions regarding access to and maintenance of employment.
• Fixed-term contracts. Verify if the justifying reason is specifically stated and true, if the renewals respect the legal limits, and if there are contracts that, due to excessive duration or renewals, may have become open-ended contracts.
• Job functions, location, and organization. Compare what is stated in the contract with daily practice. Discrepancies between the contract and reality (category, location, hours, teleworking arrangement) are a frequent source of litigation.
• Ensure that teleworking agreements are formalized and that compensation for additional expenses is defined and documented.
• Salary confidentiality clauses. The draft legislation transposing the pay transparency directive provides for the nullity of clauses that prevent workers from disclosing their remuneration. It is advisable to identify these clauses from the outset.
• Service providers. Review formally independent relationships that show signs of subordination, in light of the presumptions of an employment contract (articles 12 and 12-A of the Labor Code, the latter relating to digital platforms).

4. Internal procedures: duties by dimension

Many labor obligations apply to all companies, but others depend on the number of employees. According to Article 100 of the Labor Code, a micro-enterprise is considered to be one that employs fewer than 10 workers, a small enterprise one that employs between 10 and fewer than 50, a medium-sized enterprise one that employs between 50 and fewer than 250, and a large enterprise one that employs 250 or more. The following table summarizes the main obligations to be observed.

 

Scope	Duties to be verified
All companies	Record of working hours; posted work schedule; work accident insurance; organization of occupational health and safety services (Law No. 102/2009); continuous training (minimum of 40 hours per year per worker, Article 131); annual Single Report; transparent remuneration policy, based on objective and non-discriminatory criteria (Law No. 60/2018).
Starting from 7 workers	Code of good conduct for the prevention and combating of harassment at work (article 127, paragraph 1, subparagraph k), of the Labor Code), with disciplinary proceedings initiated when situations of harassment become known.
Starting from 50 workers	Internal whistleblowing channel (Law No. 93/2021, whistleblower protection); regulatory compliance program within the scope of the General Anti-Corruption Regime (Decree-Law No. 109-E/2021): risk prevention plan, code of conduct, training and whistleblowing channel. Future reporting of salary disparities, if the transposition project is approved as published.
Medium (75+) and large companies	Employment quotas for people with disabilities with a degree of incapacity equal to or greater than 60% (Law No. 4/2019): 1% in medium-sized companies with 75 or more employees and 2% in large companies.
Listed companies and the state's business sector	Balanced representation in administrative and supervisory bodies and an annual plan for equality (Law No. 62/2017).

 

 

Sectoral attention. Beyond size, the sector of activity determines specific obligations. Each company must identify the applicable collective labor regulation instrument (collective agreement or extension order) and confirm compliance with the salary scales, categories, allowances, and rules for the organization of working time stipulated therein. Sectors such as construction, transport, hospitality and catering, health, and industry have their own rules regarding safety, driving and rest times, night work, and shift work, which must be reviewed in conjunction with general procedures.

 

Layoffs and outsourcing. Companies that have carried out collective dismissals or dismissals due to job elimination should remember the prohibition on resorting to external procurement of services to meet the needs of the dismissed worker in the following 12 months (Article 338-A of the Labor Code).

5. Priorities for 2027

Based on the framework described, we recommend that companies organize their employee reviews around the following priorities:

1. Until December 31, 2026: to verify and mobilize the balances of the Employment Compensation Fund, without prejudice to a possible extension of the deadline; to update the salary table based on the minimum wage of 2027, as soon as it is set.
2. First quarter of 2027: Audit of employment contracts (information, terms, teleworking, salary confidentiality clauses) and comparison between contract and daily practice.
3. Salary transparency: Document the criteria for setting and progressing salaries, prepare salary ranges for job advertisements, eliminate questions about candidates' salary history, and, in companies with 50 or more employees, simulate the calculation of the gender pay gap.
4. Parenting and schedules: Prepare responses to requests for continuous work schedules and plan absences resulting from the extension of parental leave, as soon as the legislation is published.
5. Internal compliance: Review the code of conduct against harassment, the reporting channel, and the regulatory compliance program, confirming those responsible, response times, and record keeping.
6. Technology and AI: Inventory the tools used in recruitment, evaluation and monitoring of workers, review the information provided to workers and prepare for compliance with the IA Regulation by December 2027.
7. Legislative monitoring: To monitor the potential resubmission of the labor reform and the transposition of pending directives, integrating the changes only when there is an approved text.

6. Conclusion

Rejecting the "Work 21st Century" reform does not mean an absence of change. Salary transparency, parental leave, work on digital platforms, and the use of artificial intelligence in human resources management will require adaptations in 2027. Companies that review their contracts and procedures now will be in a better position to comply with the law, reduce the risk of litigation and fines, and respond quickly when the new regulations are published.

 

Legal notice

This note is for informational and general purposes only and does not constitute legal advice, nor does it replace consultation with a lawyer for the analysis of specific situations. The information refers to legislation and legislative initiatives known as of November 10, 2026, and may be altered by subsequent developments, namely the publication of the aforementioned legislation.

Beyond Legal assumes no responsibility for decisions made based solely on this notice. Reproduction, in whole or in part, is permitted provided the source is cited. For more information, contact the Beyond Legal labor team.