Portugal's Trabalho XXI Labour Reforms Spark Union Clash Over Exclusion
The Portuguese government has begun formal talks on a major labour reform package called Trabalho XXI. Discussions started in February 2026, with two initial meetings held in Lisbon. The proposed changes include over 100 amendments to the country's Labour Code.
The negotiations involve employer groups and the UGT union, but another key union, CGTP, has been left out. This exclusion has sparked criticism, as the organisation insists its participation is legally required.
Negotiations officially launched on 14 March 2026, following earlier discussions in February. The government's proposals focus on extending trial periods for new hires and simplifying dismissal procedures. UGT has shown partial resistance to these plans, though no final decisions have yet been made.
Meanwhile, CGTP was not invited to the Labour Ministry's Monday meeting. The union argues that its exclusion violates constitutional rights guaranteeing worker representation in labour policy debates. Despite the snub, CGTP has announced it will attend the session to present its own reform proposals.
The Trabalho XXI package represents the most extensive overhaul of Portugal's Labour Code in years. If approved, the amendments would reshape hiring practices, job security rules, and employer flexibility across multiple industries.
The government continues discussions with UGT and employer associations, but tensions remain over CGTP's absence. The union's insistence on joining the talks could delay or alter the reform process. Final agreements on the Trabalho XXI package are still pending, with further meetings expected in the coming weeks.
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