Employment and Labor Law

Changes to Labour Legislation: Compensation Funds

Law No. 13/2023 of 3 April, amends the Labour Code and related legislation. Regarding Compensation Funds, although it does not make any changes to the respective legal regimes, the entry into force has significant impacts, due to the suspension of certain obligations that Law 70/2013 of 30 August imposes on employers.

Concerning the Labour Compensation Guarantee Fund, for the duration of the medium-term agreement for the improvement of income, wages and competitiveness, some obligations referring to subscription, payment obligation, payment methods and non-compliance are suspended.

Regarding the Labour Compensation Fund, until such time as this regime is amended, some obligations referring to subscription, payment obligation, suspension of deliveries, waiver of delivery to the fund, payment methods and non-compliance are suspended.

Therefore, as from 01.05.2023 and while the provisions of the transitional regime of Law 13/2023 of 3 April are in force for each of the Funds, the following obligations of the employers are suspended:

- Subscribe to the Compensation Funds;

- Communicate to the Compensation Funds the admission of new employees;

- Communicate to the Compensation Funds any changes in employment contracts;

- Make payments to the Compensation Funds, without prejudice of amounts in debt, prior to April 2023.

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