Law No. 55/2014. D.R. (Portuguese official gazette) No. 162, Series I of 2014- 08-25

Parliament

Publication of Law No. 55/2014, of 25 August, amending for the seventh time the Labour  Code, enacted by Law No. 7/2009, of 12 February, which introduced amendments to  Articles 501 and 502 of the aforementioned Code, concerning collective bargaining  agreements.

With regard to the duration and lapse of collective bargaining agreements, Article 501 of  the Labour Code, as amended, sets the new timeframes, as follows:

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In case of notice of non-renewal of the collective bargaining agreement and of  interruption of the negotiations (including through reconciliation, mediation or voluntary  arbitration) for a period of more than 30 days, the extension of the duration period is  suspended. However, the new regime sets the maximum negotiation period (with  suspension) at 18 months.

The amendment aforementioned does not apply to collective bargaining agreements in  respect of which notice of non-renewal is given until 31 May 2014.

Moreover, this Law amends Article 502 of the Labour Code, allowing for the suspension  of the term of the collective bargaining agreement, in certain situations.

This suspension is conditional upon the written agreement between employers’ associations and trade unions’ associations that are parties to the collective agreement,  and must mandatorily state the reasons for and the duration of the application of the  suspension as well as the effects arising from the same.

The present Law further determines that, within one year from its entry into force date, a  new reduction of the two periods referred to above must be promoted to, respectively 2  years and to 6 months, following a positive evaluation by the social partners, in the  context of the Comissão Permanente de Concertação Social (permanent committee for  social conciliation).