Decree-Law no. 131/2024 modified the consequences in cases where the court declares a fixed-term employment relationship to be unlawful, transforming it into an open-ended one.
The following shows a comparison of the old framework (until 16/09/2024) and the new one.
| Scenario | Until 16/09/2024 | From 17/09/2024 |
|---|---|---|
| Challenge period | 180 days from the end of the fixed-term contract | 180 days from the end of the fixed-term contract |
| Remedy | All-inclusive compensation ranging from 2.5 to 12 months’ salary, based on the last salary used for calculating the severance pay (TFR), or up to 6 months’ salary if a collective labour agreement provides for the hiring of workers already employed on a fixedterm basis. Conversion to an open-ended contract is also required. | All-inclusive compensation ranging from 2.5 to 12 months’ salary, based on the last salary used for calculating the severance pay (TFR), WITH THE POSSIBILITY FOR THE JUDGE TO SET A HIGHER AMOUNT if the worker proves they suffered greater harm. The option to halve the compensation (reducing it to 6 months’ salary) is removed, even if collective labour agreements provide for the hiring, including on open-ended contracts, of workers already employed on fixed-term contracts from specific lists. Conversion to an open-ended contract is also required. |
