[author: Ricardo Grilo]*
Implications of the EU’s GDPR on Employment Contracts
New Legislation Enacted
Author: Ricardo Grilo, Senior Associate & Gonçalo Machado dos Santos, Junior – Garrigues Portugal SLP Sucursal
The EU’s General Data Protection Regulation (GDPR) 2016/679, of April 27, 2016, entered into force on May 25, 2018. The GDPR, which applies in Portugal, establishes new rules regarding the access, use, processing, and transfer of personal data concerning employees. Employers are now required to designate a data protection officer, inform the employee the purpose for collecting their data, and review workplace surveillance policies. A breach of any GDPR provision is punishable by a fine of up to 20 million EUR or 4% of the businesses’ gross revenue.
Decree-Law for the Execution of the State Budget for 2018 Matters
New Order or Decree
Author: Ricardo Grilo, Senior Associate & Gonçalo Machado dos Santos, Junior – Garrigues Portugal SLP Sucursal
Passed on May 15, 2018, the Decree-Law for the execution of the 2018 State Budget established the necessary provisions for the compliance with the Budget. Among other things, the law requires remuneration valuations for operational assets and employees not covered by Collection Bargaining Agreements. Further, limitations are placed on the admission of new employees and renewals of term employment contracts in public functions. Additionally, protections are provided for sick pensioners in public functions.
Amendments on Social Protection Schemes
New Order or Decree
Author: Ricardo Grilo, Senior Associate & Gonçalo Machado dos Santos, Junior – Garrigues Portugal SLP Sucursal
On July 2, 2018, several amendments on social protection schemes for unemployment, illness, and parenthood were introduced through Decree-Law no. 53/2018. Regarding unemployment, protection is facilitated through the recognition of the beneficiary’s remuneration record and the reduction of the minimum number of days required to access unemployment benefits. Sick allowance for the self-employed was reduced and is now due from the 11th day of temporary incapacity. Social protections for parenthood will include child and grandchild support allowances.
*Senior Associate & Gonçalo Machado dos Santos, Junior – Garrigues Portugal SLP Sucursal
