First step in privatisation of civil service employment relations

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New legislation which came into force in June 1998 allows for a limited privatisation of employment relations in Portugal's civil service.

Law No. 25/98 of 6 May 1998 came into effect in June 1998 and alters the statutes defining the general rules relating to salaries and personnel management in the civil service (laid down by Decree-Law no. 184/89 of 2 June, 1989). Among other matters, the new law introduces the possibility in the civil service of concluding employment contracts for certain activities, designated as tasks for auxiliary personnel, under the regime applicable to private employment contracts.

This is a significant innovation considering that, up until now, work under an employment contract in the public administration, with the exception of short-term contracts, could only take place within the framework of public employment, which is subject to statutory regulation. In essence, the option of permitting employment contracts under general law, even though limited to a circumscribed number of activities, constitutes a first step in the direction towards privatising employment relations in public administration. This is similar to what has been happening in some other European Union countries. In addition, the new legislation is a logical outcome of a process of reform in the civil service system that began in 1988 and which has brought it increasing in line with the principles of general labour law.