Presidential Decree No. 51/25, of February 19, regulates the Legal Regime of Temporary Employment Contracts, as well as the activity of assigning temporary workers and their respective contractual relationships, repealing Presidential Decree No. 31/17, of February 22, which established the Legal Regime for Temporary Assignment of Workers.

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The decree introduces significant changes compared to the previous regulation, notably:

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• The conclusion of a worker assignment contract is now only permissible for workers who have a contractual relationship with a temporary employment agency, and the previous requirement of a minimum of two months of effective service has been eliminated.

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• The assignment of workers to the user company is subject to verification, by the assigning company, of the existence of a valid reason for employing a temporary worker, in accordance with the provisions of the General Labor Law (LGT).

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• The contract for the assignment of temporary workers is subject to the rules on duration, renewal, and conversion of employment contracts established in the LGT.

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• The absence of a valid reason for employing a temporary worker, as well as non-compliance with provisions regarding the duration, renewal, and conversion of employment contracts, results in the automatic integration of the worker into the staff of the user company under an indefinite employment contract, with their seniority recognized from the beginning of their service.

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• The assigned worker is granted the right to choose to remain in the company that offers a more favorable employment arrangement. However, they must inform both companies of their decision within 15 (fifteen) days from the date of contract conversion.

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• The assigning company is responsible for exercising disciplinary authority over the assigned workers.

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• The user company is no longer required to ensure equal treatment regarding remuneration between assigned workers and permanent employees.

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The content of this newsletter is general and abstract and does not replace legal advice tailored to specific cases. FBL Advogados is pleased to assist any interested parties regarding the terms and forms of the Presidential Decree discussed in this newsletter. Our team is prepared to provide specialized technical support, offering relevant solutions and recommendations.

For more information, please contact:

Eloisa Soares and Neuza Melão Dias | eloisa.soares@fbladvogados.com | neuza.melaodias@fbladvogados.com

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