HR Future: Legal Highlights

Disciplinary Proceedings — Final Report of the Preliminary Inquiry

Judgment of the Supreme Court of Justice of 08.04.2026

Case No: 1921/24.0T8CSC-A.L1.S1

This judgment addresses the question of whether the failure to file the final report of the preliminary inquiry in proceedings for the judicial challenge of the regularity and lawfulness of a dismissal leads to the conclusion that the employer failed to submit the "disciplinary proceedings", thereby rendering the dismissal unlawful.

The Supreme Court of Justice held that the requirement to file the disciplinary proceedings, as provided for in the Labour Procedural Code, must not be reduced to a mere formality detached from its ratio legis: the missing elements are only relevant where they prove necessary for the employee's defence. Furthermore, the Court stated that the proceedings to be filed are the actual proceedings as drawn up by the employer in the exercise of its margin of discretion, and that the employer may not selectively choose which documents to submit. Lastly, as regards elements whose necessity is not expressly required by law — as is the case with the final report of the preliminary inquiry — the Court noted that the sanction of a declaration of unlawfulness is only justified where, in the specific case, the omission proves relevant in light of the purposes of the provision.

The Supreme Court acknowledged that, where the employer opts to carry out a preliminary inquiry, it becomes an integral part of the disciplinary proceedings, and that knowledge of its content is, as a rule, relevant to the exercise of the employee's right of defence, insofar as it enables verification of compliance with statutory time limits, examination of the evidence underpinning the statement of charges, and assessment of the circumstances in which the investigative steps took place. Nevertheless, the Court drew a distinction between the preliminary inquiry itself and its final report, emphasising that the law prescribes no formal rules as to the content of the preliminary inquiry nor requires the preparation of a final report.

Non-Competition Agreement — Conditions of Validity

Judgment of the Lisbon Court of Appeal of 15.04.2026

Case No: 447/24.7T8LSB.L1-4

In this judgment, the Lisbon Court of Appeal clarified that actual and concrete harm is not required as a condition of validity of a non-competition agreement; the relevant provision of the Labour Code is satisfied by the probability or risk that the employee's activity may cause harm to the employer.

Company Car Policy — Principle of Non-Reduction of Remuneration

Judgment of the Lisbon Court of Appeal of 15.04.2026

Case No: 15861/24.0T8LSB.L1-4

In this judgment, the Lisbon Court of Appeal held that the unilateral withdrawal, without any compensation, of a company car under a new "Company Car Policy" — pursuant to which the employee no longer met the eligibility criteria for the allocation of a company car — breaches the principle of non-reduction of remuneration. The Court emphasised that any Service Order issued after the allocation of the vehicle is incapable of determining the terms of that allocation, in view of the non-waivable nature of remuneration during the term of the employment contract.