Portugal Parliament Rejects Labour Law Reform

Lisbon, 19 June 2026 — Portugal’s Parliament has rejected the government’s proposed labour-law reform after Chega joined opposition parties in voting against it.

The proposal, presented by the centre-right PSD/CDS-PP government, aimed to change more than 100 articles of the Labour Code. The government said the reforms were needed to improve productivity, strengthen competitiveness and create better job opportunities.

However, trade unions and opposition parties argued that the changes would make employment less secure. Critics were particularly concerned about easier dismissals, fewer limits on outsourcing and rules that could reduce workers’ protections.

The bill received support only from the governing coalition and the Liberal Initiative party. Chega voted against it together with the Socialist Party, Livre, PCP, Bloco de Esquerda, PAN and JPP.

The result led to long applause in Parliament, while union representatives celebrated the outcome as a victory for workers after months of protests and strikes. CGTP, Portugal’s largest trade union federation, said the vote reflected strong public opposition to the proposed changes.

The rejection means that the labour reform will not move forward in its current form. The government may now need to negotiate a different proposal or seek wider political support before returning to Parliament.