Penalties for labour law infringements under review

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In February 1998, the debate on dealing with breaches of labour law in Portugal, which has been underway for some time, entered its final phase. Changes are proposed to the penalties applied for non-compliance with labour legislation.

February 1998 saw both the announcement of a preliminary draft bill on breaches of labour law, to be presented by the Covernment, and the presentation of a draft bill on the subject by the Portuguese Communist Party (Partido Comunista Português, PCP) for discussion in Parliament.

The system of penalties for labour law infringements was an issue in the current 1996-9 tripartite Strategic Concertation Agreement, and has been brought up in the Agreement's monitoring committee for consideration in the first quarter of 1998. In the meantime, the Government has raised the issue in the council of ministers.

The PCP bill to increase penalties for infractions may come to a vote in Parliament and, if approved, sent for analysis by the parliamentary Labour Commission, while waiting for the government legislation on the same subject to be presented to the deputies.

Both the government draft bill and the PCP bill aim to increase the financial penalties and fines for breaches of labour law. Violations of employment contracts - such as disregard for holidays, unpaid overtime, or contracts that do not comply with provisions of the law - are currently punished by extremely low fines. Some penalties are still at the levels set more than 15 years ago.

The Government's preliminary draft bill combines, for the first time, the various systems for dealing with labour law infringements. The penalties are scaled according to the gravity of the offence (very serious, serious, and minor), the size of the company (small or large) and the degree of culpability (intentional or negligent). Maximum amounts for very serious breaches are doubled in the case of violations of legislation on :

• safety, hygiene, and health;

• the right to organise and to strike; and

• child labour.

The bill would also introduce penalties in areas, such as violation of the maternity protection legislation, for which there were previously no sanctions under labour law. The draft bill would also create a register of companies at the Labour Inspectorate-General, which would make it possible to penalise repeat offenders heavily.

The social partners have shown themselves to be willing to discuss and work toward improving the legislation now under discussion. The chair of the Confederation of Portuguese Commerce (CCP) has stated that the proposed law "will help to clarify the rules governing fair practice by penalising unfair practice". On the union side, the General Confederation of Portuguese Workers (CGTP) and the General Workers' Union (UGT) believe that penalties must be created that can guarantee compliance with collective agreements, and that can ensure criminal prosecution in the case of the most serious labour law violations, such as those relating to child labour and worker safety, which are seen as truly criminal acts.