Law No. 27/2014. D.R.  (Portuguese official gazette) No. 88, Series I of 2014- 05-08

Law No. 27/2014 of 8 May, amending Articles 368 and 375 of the Labour Code on the  individual dismissal due to the extinction of job position and on the individual dismissal  due to unsuitability of the employee was published on the Portuguese official gazette.

The said law changed the selection criteria for employees, which, in addition to being  relevant and non-discriminatory, are now required to respect the following order:

  1. Worse performance evaluation, the parameters of which are previously known  by the employee;
  2. Less academic and professional qualifications;
  3. More costly maintenance of the employment relation;
  4. Less experience carrying out the functions;
  5. Less seniority in the company.

Law No. 27/2014, of 8 May, also establishes a solution that had already been adopted  as a result of the declaration of unconstitutionality of some of the amendments to the  rules on the  individual dismissal  due to the extinction of  job position made by Law  No. 23/2012, of 25 June. Indeed, as followed already from the re-enactment of the  provision of former Article 368(4) of the Labour Code  – arising from the declaration of  unconstitutionality with general binding force of the provision introduced in its stead by  Law No. 23/2012 of 25 June  -   it is once more considered that the maintenance of the  employment relation is practically impossible where the employer does not have another  job compatible with the occupational category of the employee whose job is  extinguished.

The same happened with the individual dismissal due to unsuitability of the  employee,  since, in spite of its re-enactment as a result of the declaration of unconstitutionality  with general binding force of the provision introduced in its stead by Law No. 23/2012 of  25 June, Law No. 27/2014 of 8 May, again, established the requirement that there must  not be in the company another job available and compatible with the occupational  category of the employee in question in order to proceed with this type of individual  dismissal.

These amendments to the Labour Code have taken effect on 1 June 2014.