Parental Leave and Continuous Working Hours: What Could Change in Labour Legislation?

Bill No. 176/XVII/1st, approved in a final overall vote, provides for the extension of initial parental leave to up to 210 days, the possibility of receiving 100% of reference earnings for 180 days, subject to specific leave-sharing conditions, and the introduction of a continuous working schedule in the private sector for employees with family responsibilities.

The amendments concern the Portuguese Labour Code and the social protection schemes applicable to parenthood, established under Decree-Laws No. 91/2009 and No. 89/2009, both dated 9 April.

Parental leave in 2027: what changes for mothers and fathers?

One of the main amendments is the extension of initial parental leave, which may now last 150, 180 or 210 consecutive days, depending on the arrangement chosen by the parents and the applicable legal requirements.

The new framework establishes an initial parental leave period of 150 days, which may be taken by either parent or shared between both parents, without prejudice to the mother's mandatory exclusive leave period.

This period may be extended by an additional 30 or 60 days, depending on the parental leave arrangement selected and compliance with the applicable sharing requirements.

How much will parents receive during parental leave?

The amount of the initial parental allowance depends on the duration of the leave and how it is shared between the parents.

To qualify for 180 days of parental leave paid at 100%, each parent must take, exclusively, at least 30 consecutive days or two periods of 15 consecutive days, following the mother's mandatory exclusive leave period.

Under the 210-day arrangement, the parental allowance corresponds to 86% of reference earnings where both parents meet these leave-sharing requirements.

This percentage may increase to 90% where the father takes, exclusively, 60 consecutive days or two periods of 30 consecutive days, in addition to his exclusive parental leave entitlement.

It is important to emphasise that these percentages apply to the reference earnings used to calculate the parental allowance and do not necessarily correspond to the employee's usual net monthly salary.

Paternity leave: more days for fathers following childbirth

The approved amendments also strengthen the rights of working fathers by revising the periods of exclusive parental leave.

The mandatory 28-day leave entitlement remains unchanged and must be taken within 42 days following the child's birth. However, the first 14 days must now be taken consecutively and immediately after childbirth, replacing the current requirement of seven consecutive mandatory days.

At the same time, the optional leave period increases from seven to 14 days, which may be taken consecutively or intermittently, provided that they coincide with the mother's initial parental leave period.

Consequently, the father's exclusive parental leave entitlement may reach a total of 42 days, combining mandatory and optional leave periods.

The new framework also strengthens protection for specific family circumstances, particularly single-parent families and, under the conditions established by law, parents who are victims of domestic violence, allowing access to extended leave periods without the usual requirement for leave to be shared between both parents.

Continuous working schedules in the private sector: a new framework for employees with children

Another significant amendment is the introduction of Article 56-A into the Portuguese Labour Code, expressly providing for continuous working schedules for employees with family responsibilities.

This working time arrangement, already established in the Portuguese Public Administration, allows working hours to be concentrated predominantly within one part of the day, helping employees reconcile their professional and family responsibilities.

Who is eligible for a continuous working schedule?

Under the approved framework, continuous working schedules may apply to employees with children under the age of 12 or, regardless of age, children with a disability, chronic illness or cancer, provided that they live with the employee in a shared household.

Either parent may benefit from this arrangement.

Eligibility is also extended to employees who, in place of the parents, live with their grandchildren in a shared household.

How does a continuous working schedule operate?

A continuous working schedule is characterised by the provision of work on a substantially uninterrupted basis and has three fundamental features:

• A reduction of up to one hour in the normal daily working period, under the conditions established by law;

• A rest break of no more than 30 minutes, which is considered working time for all legal purposes;

• A maximum of five consecutive hours of work, without a rest break.

A continuous working schedule therefore enables a more concentrated organisation of daily working hours, without removing the obligation to ensure the rest periods required by law.

Are employers required to grant continuous working schedules?

The introduction of this arrangement into the Portuguese Labour Code does not mean that continuous working schedules are automatically granted to all employees who meet the relevant family-related eligibility requirements.

Under the new Article 56-A, its implementation depends on provisions established in a collective bargaining agreement or, subsidiarily, on an agreement with the employer.

Employees wishing to benefit from this arrangement must submit a written request at least 30 days in advance, specifying the period during which they intend to benefit from the schedule, up to a maximum of five years.

Assessing the implementation of this arrangement therefore requires consideration of the relevant statutory provisions, the applicable collective bargaining framework and the specific terms agreed between the employee and the employer.

When will the new parental leave rules enter into force?

The approved text provides that the new legislation will enter into force with the State Budget Law following its publication, with the new rules expected to apply to initial parental leave periods beginning on or after 1 January 2027.

As at the date of this analysis, the legislation has been approved by the Portuguese Parliament (Assembly of the Republic). However, the effective implementation of the amendments remains subject to completion of the legislative process, including promulgation and publication in the Portuguese Official Gazette (Diário da República).