HR Future: Legal Highlights

HR Future: Legal Highlights

November 2026

 

HR Future: Legal Highlights November 2026

 

In this Newsletter, we present the main legislative developments in Employment Law published during October 2026, as well as a selection of relevant case law made available throughout the same period.

We have also included other highlights from the month of practical interest to the field of employment.

Contacts

Legislative Updates

Protection of Workers against Exposure to Chemical Agents and to Carcinogens, Mutagens or Substances Toxic to Reproduction at Work

Decree-Law No. 203/2026 of 22 October 

This Decree-Law came into force on 2 November and transposes Directive (EU) 2024/869, which, in turn, had amended Directive 2004/37/EC, on the protection of workers from risks related to exposure to carcinogens, mutagens or substances toxic to reproduction at work, and Directive 98/24/EC on the protection of the safety and health of workers from the risks related to exposure to chemical agents at work. In transposing these amendments, the legislation introduced the following changes to the domestic legal system:

  • It amended and republished Decree-Law No. 301/2000, of 18 November, which regulates the protection of workers against risks arising from exposure to carcinogens, mutagens or substances toxic to reproduction at work. 
  • It amended and republished Decree-Law No. 24/2012 of 6 February, which consolidates the minimum requirements regarding the protection of workers against risks to safety and health arising from exposure to chemical agents at work.
  • It repealed Decree-Law No. 479/85 of 13 November, which listed the substances, agents and industrial processes posing an actual or potential carcinogenic risk to workers exposed in the course of their work.

On 30 October 2026, Directive (EU) 2026/2450 was published in the Official Journal of the European Union, which further amends Directive 2004/37/EC by clarifying and harmonising definitions, setting new occupational exposure limit values and strengthening protection rules. Member States have until 20 November 2028 to transpose it. 

Relevant Case Law

The Concept of ‘working time’ – Journeys to a Workplace Other than the Usual One

Judgment of the Court of Justice of the European Union (Sixth Chamber) of 22 October 2026

Case No: C‑420/24

The Court of Justice of the European Union (CJEU) has ruled that the time spent travelling by a worker with a fixed place of work must be regarded as working time when, on the employer’s instructions, they travel to a location other than their usual place of work and return from it.

According to the CJEU, such journeys fall within the definition of ‘working time’ set out in Directive 2003/88/EC: ‘any period during which the worker is working or is at the employer’s disposal and carrying out his or her activity or duties’.

In the Court’s view, travel is inseparable from the duties inherent in the worker’s professional activity when the worker is required to travel in order to carry out the work provided for in their employment contract, under the travel conditions imposed by the employer. The Court also considered it decisive that, during that time, the worker is obliged to be physically present at the location determined by the employer and to be available there to perform the relevant duties immediately; they are therefore unable to manage that time freely or use it to attend to their own interests.

 

Non-Competition Agreement – Differential Competition

Judgment of the Supreme Court of Justice of 20 October 2026  

Case No: 21891/23.1T8PRT.P1.S1

In the view of the Supreme Court of Justice (STJ), the validity of a post-contractual non-competition agreement at the time of its conclusion is not sufficient, in itself, to conclude that there has been a breach of the agreement by an employee who goes on to perform the same duties at another company, even if that company operates, potentially and partially, in the same market; it is necessary to assess the specific competitive risk at the time the employee leaves. 

According to the STJ, it may be reasonable to foresee, at the start of the employment contract, that the contracted activity, by its very nature, may harm the employer, which justifies a post-contractual non-competition clause. However, the manner in which the contract is actually performed may render the restriction irrelevant. If the employee does not actually acquire the specific knowledge initially envisaged, or if that knowledge ceases, in the meantime, to be specific, the advantage they might derive from the duties performed may never materialise or may be greatly reduced. 

 

Disciplinary Proceedings – Full Consolidation of Proceedings 

Judgment of the Supreme Court of Justice of 20 October 2026  

Case No: 932/25.3T8CTB-A.C1.S1 

The STJ states in this ruling that, in a court case concerning the validity and lawfulness of a dismissal for just cause, the disciplinary proceedings must, as a rule, be submitted to the court in full, as this is the only way to fulfil the purpose of this legal requirement, which is to guarantee the employee the right to an effective and full defence. 

Thus, if the disciplinary proceedings are not submitted to the court in their entirety, the dismissal will, as a matter of principle, be declared unlawful, unless the employer demonstrates that the partial submission did not prejudice the employee's defence. 

The STJ emphasises, however, that the unlawfulness of the dismissal is not limited solely to cases where the failure to attach the proceedings in full made the employee's defence impossible; it is sufficient to demonstrate that it hindered it. Thus, the fact that the employee was able to defend themselves, viewed ex post, is not sufficient to rule out prejudice, as their defence may not have been of the same standard as it would have been had they had access to the entire proceedings.

 

Individual Redundancy – Practical Impossibility of Maintaining the Employment Relationship 

Judgment of the Supreme Court of Justice of 21 September 2026  

Case No: 4106/24.2T8MTS.P1.S1

In this judgment, the Supreme Court of Justice (STJ) upheld the decision of the Lisbon Court of Appeal of 27 May 2026, which was analysed in our July edition.

At issue are the requirements for individual redundancy, in particular whether the employer may claim that it is practically impossible to maintain the employment relationship because no other post compatible with the employee's professional category is available, when the company has vacancies to which the employee cannot be appointed without specific training.

The STJ held that the alternative post may involve duties different from those of the employee, provided that these are compatible with their qualifications and skills and that their statutory category does not preclude this. The need for some adaptation training does not invalidate this conclusion, provided that it does not exceed what is normal in the event of a change of post (supplementary or refresher training). The same does not apply where the new post is in an area for which the employee lacks the necessary qualifications and skills, or where it requires training from scratch (qualification training) rather than merely supplementary training.

 

Non-Reduction of Remuneration – Change of Duties at the Employee's Initiative

Judgment of the Lisbon Court of Appeal of 23 September 2026 

Case No. 7416/23.2T8LRS.L1-4

According to the Lisbon Court of Appeal, the guarantee of non-reduction of remuneration, provided for in Article 129(1)(d) of the Labour Code, is intended to protect the employee against reductions in remuneration caused by the employer's conduct. However, it does not cover reductions that result solely from the employee's own will. 

Consequently, an employee who, of their own volition, moves to a lower-ranked category with lower remuneration cannot invoke the guarantee of non-reduction of remuneration. This will be the case where the employee voluntarily applies, as part of an internal recruitment process within their employer's group of companies, for a position in another group company, with duties different from those they had performed until then, and to which a different collective labour regulation instrument applied.

 

Other Highlights

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