Employment annual report
Law firms playing key role in creation of new
employment frameworks
Clients being advised by employment lawyers on strategic planning, as well as negotiations and
disputes – meanwhile, cross-border instructions are on the increase
Benjamim Mendes
The current dynamics of the Portuguese
market are giving law firms an
opportunity to play a central role in
the structuring and implementation of
employment frameworks for clients,
according to Benjamim Mendes, partner
at head of the employment practice at
ABBC in Lisbon.
He adds that the advice being
provided by law firms covers the
strategic planning level, as well as
negotiations and disputes. Mendes says
this gives lawyers the opportunity to
provide the whole spectrum of advice
including in relation to contracts,
outsourcing, cost efficiencies and
restructurings.
“Restructurings, although not
increasing, are still a major source of
employment work, as is contentious work
arising from redundancies, for instance,”
explains Mendes. “We have also been very
active reviewing and negotiating collective
bargaining agreements on behalf of
industry and sector associations in various
fields of activity.”
Instructions regarding cross-border
issues are also on the increase, according
to Mendes, who cites the resurgent M&A
market as the source of a “substantial
volume of employment work, including
due diligence, notifications and transfer
of employees”. He adds that law firms
need to adapt to the evolving economy
and believes that those that offer a wide
range of employment-related services
as well as seamless integration across
practice specialties and areas will “not
suffer from a substantial decrease in
demand”.
Mendes continues: “Litigation arising
from collective dismissals has been
increasing, namely because companies
tend to pay legal minimum severances.”
He adds that cost efficiency work will
continue, including “managing workforce
supply and demand in a sustainable way”,
taking advantage of new technology
– namely for the adoption of telework
– and finding the balance between
the legal protection of employees and
organisations’ collective interests.
Threat of collective dismissals declining in Portugal
Filipe Azoia
Fewer workers in Portugal are facing
the threat of collective dismissal, though
employers are still taking steps to restructure
and organise their businesses, according to
Filipe Azoia, founding partner at AAMM.
“Companies turned to collective
dismissals in unprecedented numbers during
the period of the troika in Portugal but fewer
of them are now using this mechanism,”
he says. According to Azoia, the result has
been that fewer workers are now affected by
collective dismissal procedures – however
he adds that employers are still having to
restructure their businesses and are using
agreements that allow for an employee’s
professional category to be downgraded, for
example.
In practical terms, this may mean that
employees see a reducti