Insights

PREVENTION OF FAKE INDEPENDENT WORK

03/09/2013

The Law no. 63/2013, of August 27, has now been approved in order to create the required mechanisms to prevent the misuse of rendering of services contracts in any existing employment relationship (namely illegal "green receipts"). 

For this purpose, the Portuguese Authority for Work Conditions (ACT) is now responsible for verifying the existent of evidence of a situation of seemingly autonomous activity, in situations in which it is presumed the existence of an employment contract. 

In those cases the labour inspector should notify the employer to within 10 days regularize the employee's situation or, to state on whatever he considers convenient. When the deadline given to the employer ends, without the presentation of a reply, ACT shall send, within 5 days, a participation of the facts to the Public Prosecutor's Office in order to proceed with a judicial action. 

This procedure is immediately closed if the employer demonstrate the regularization of the employee's situation upon presentation of the employment contract or through proof of its existence, reported to the date of beginning of the employment relationship. 

Regarding the procedural changes, we highlight the creation of the legal action for recognition of the existence of an employment contract. 

The Law enters into force on September 1, 2013.

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