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The Portuguese Government has announced its intention to formally regulate the option for employees to purchase additional holiday days, a practice already adopted by some companies but currently lacking specific legal framework under the Labour Code.
In an article published by ECO, Pedro Antunes, Partner in the Labour practice area at CCA Law Firm, analyses the implications of the proposed measure and highlights the need for legal certainty on both sides of the employment relationship.
“For this measure to be safely generalised, it must be accompanied by clear rules: well-defined contractual limits and tax neutrality (for employees, this could mean exemption from IRS and Social Security; for employers, the associated cost could be treated as a deductible personnel expense),” the lawyer notes.
Pedro Antunes further explains that, as things stand, the Labour Code does not set out how the purchase of additional rest days should be carried out, nor does it define limits or formal requirements. This creates a legal grey area that could be addressed through legislative intervention, ensuring greater predictability, fairness and contractual clarity.
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