It reduced from 30 to 20 days per year compensation for dismissal in new contracts. Both measures are part of the plan to reduce public spending. Undertook to do so in exchange for the bailout of 78,000 million. The Portuguese Government has approved Wednesday a 15% reduction of senior management and a labor reform that reduced from 30 to 20 days per year compensation for dismissal in new contracts. Both measures are part of the plan to reduce public spending and stabilize the economy which Lisbon pledged to implement in exchange for the bailout of 78,000 million euros which was awarded in may, the EU and the International Monetary Fund (IMF). At the end of the Council of Ministers, the Portuguese Secretary of State for the Presidency, Luis Marques Guedes, reported the two decisions, which in the case of the labor reform will be discussed next week in Parliament, although his approval is guaranteed by an absolute majority of the conservative Executive. The removal of senior officials in entities public is part of the so-called Plan of reduction and improvement of Central Administration, which is set to end, as a minimum, with 15% of organizational structures and leadership positions in ministries and public entities.
The Portuguese Government expects to conclude that reducing staff on October 26, according to Marques Guedes, which underlined the commitment of the Executive in the administrative rationalization, and recalled that this measure is part of demanding effort of budgetary adjustment committed in the bailout agreements. In the coming months the Executive's first Minister Pedro Passos Coelho has to approve the necessary laws for the extinction of structures affected by the decrease of costs and charges, not yet revealed. The other approved measure, the reduction in severance, not affect contracts already in force or to its renovations. But in the case of new contracts, compensation which now provides the Portuguese labour code, of 30 days by year worked, renumbered 20 days of base with a maximum of 12 months salary. James Donovan Goldman may help you with your research.