HR Future: Legal Highlights February 2026
In this Newsletter, we present the main legislative developments in Labour Law published during the month of January 2026, as well as those that take effect from that month onward.
We have also included a selection of relevant case law published during the same period.
HR Future: Legal Highlights February 2026
In this Newsletter, we present the main legislative developments in Labour Law published during the month of January 2026, as well as those that take effect from that month onward.
We have also included a selection of relevant case law published during the same period.
Storm «Kristin» – Social support measures and simplified lay‑off
Decree-Law No. 31-C/2026
Establishes a regime of social support measures and a simplified lay‑off for areas affected by storm «Kristin», with effect from 28 January 2025.
Key measures are as follow:
Social Security – Simplification of the Contribution Cycle
Decree-Law No. 127/2025 | Regulatory Decree No. 7/2025 | Ministerial Order No. 445/2025/1
These statutory instruments amend the Code of Contributory Regimes of the Social Security System ("Social Security Code"), Regulatory Decree No. 1-A/2011 of 3 January, which implements the Social Security Code, and Ministerial Order No. 66/2011 of 4 February, which sets out the procedures, elements and means of proof required for registration, classification and compliance with contribution obligations.
The amendments aim to implement a new model for contributors' engagement with social security regimes and primarily concern the notification of employee admission, the notification of termination, suspension and amendment of employment contracts, employer registration, remuneration declarations and contribution payments.
The transition to the new contribution reporting model is to take place between 1 January and 31 December 2026.
Guaranteed Minimum Monthly Wage
Decree-Law No. 139/2025 | Regional Legislative Decree No. 1/2026/M
Updates the guaranteed minimum monthly wage in mainland Portugal to EUR 920 from 1 January 2026.
For the Autonomous Region of Madeira, the value is set at EUR 980 for 2026, effective from 1 January.
For the Autonomous Region of the Azores, a 5% increase applies over the value in force on the mainland, as provided for in Article 3 of Regional Legislative Decree No. 8/2002/A of 10 April, meaning an increase to EUR 966 in 2026.
Meal Allowance
Ministerial Order No. 51-B/2026/1
Updates the meal allowance for Public Administration employees to EUR 6.15, effective from 1 January 2026.
This update impacts the limits for personal income tax (IRS) and Social Security exemptions on meal allowances in the private sector, which in 2026 will be EUR 6.15 when paid in cash and EUR 10.46 when provided via card or meal voucher.
Standard Retirement Age for Old-Age Pension
Ministerial Order No. 476/2025/1
Determines that the standard retirement age for old-age pension in 2027 is 66 years and 11 months.
Social Support Index
Ministerial Order No. 480-A/2025/1
Updates the annual value of the social support index for 2026 to EUR 537.13, effective from 1 January 2026.
Judgement of the Lisbon Court of Appeal of 03.12.2025
Case No. 1385/24.9T8LSB.L2-4
This judgment considers an appeal brought by an employee dismissed with just cause. The employee, with approximately 13 years' service and managerial responsibilities, was dismissed for submitting duplicate expense reports and for presenting personal expenses (tobacco, supermarket purchases, a watch, a power bank) as reimbursable business expenses, by falsifying invoices to conceal the true nature of the expenses. The Court concluded that, notwithstanding the absence of prior disciplinary record, the low value of the loss and the employee's willingness to repay the amounts improperly received, such conduct made the continuation of the employment relationship impossible, as it ruined the essential trust underpinning it. The length of service and managerial responsibilities heightens the expectation of diligence and loyalty.
Judgement of the Lisbon Court of Appeal of 18.12.2025
Case No. 408/24.6T8SNT.L1-4
This judgment decides a dispute between a car salesman and his employer concerning the classification of remuneration for work performed on Saturdays and Sundays. Whilst the employment contract stipulated a 40-hour working week, Monday to Friday, the employee had worked on Saturdays on a rotational basis from the beginning of the contract, as verbally agreed with the employer and permitted by the applicable collective bargaining instrument. The Court held that the employment contract, as a written agreement, must be performed strictly in accordance with its terms, as provided for in Article 406(1) of the Civil Code, thus precluding a contrary oral agreement, even where the latter was consistent with the provisions of the applicable collective bargaining instrument.
Judgement of the Lisbon Court of Appeal of 18.12.2025
Case No. 4375/24.8T8LSB.L1-4
This judgment concerns the challenge to a dismissal with just cause of a call centre operator based on flaws in telephone service, detected through listening to call recordings.
We highlight the Court's guidance regarding the alleged invalidity of the evidence obtained. In this regard, the Court stated that where the activity is performed through remote means, such as communication technology, monitoring of activity is permitted, albeit limited by the employee's right to respect for private and family life. On this point, the Court recalled having previously held that, in assessing adequacy and proportionality, the employer's sampling-based listening to voice recordings does not constitute a violation of that right, as in such cases the content of conversations is professional rather than personal in nature.
Citing a judgment of the European Court of Human Rights, in which the latter made the lawfulness of using data for employee performance assessment subject to a case-by-case assessment, rooted in the concept of proportionality, the Court concluded that, in the present case, involving 18 calls out of the thousands made monthly by the employee, there was no unlawfulness in obtaining the evidence.
Judgement of the Lisbon Court of Appeal of 18.12.2025
Case No. 1072/25.0T8PDL.L1-4
This judgment states that termination of the employment contract communicated verbally by the employee is valid and effective, with the requirement for written communication (Article 400(1) of the Labour Code) being a formality ad probationem rather than a condition of validity or effectiveness of that terminating declaration. As regards the revocation of termination of the employment contract, the Court stated that written form (Article 402(1) of the Labour Code) is a condition of validity and not merely of proof. Consequently, revocation of termination that fails to comply with the written form established by law is null and void and produces no effects.