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Legal alert no. 36

Extension of the scope of the special action to recognize the existence of labour contracts and of the procedural mechanisms to fight against false "green receipts" and all forms of undeclared work, including false internships and false volunteering.

On July 17th, Law no. 55/2017, which extends the scope of the special action to recognize the existence of a labour contract and the procedural mechanisms to fight against false “green receipts” and all forms of undeclared work, including false internships and false volunteering, was published in the Portuguese Official Gazette.

ACT (Authority for Labour Conditions) is the competent entity to initiate the procedure to be adopted in case of inadequacy of the bond that entitles the provision of an activity in conditions corresponding to those of the labour contract. When the ACT inspector verifies the existence of a labour contract characteristics, he must draw up a notice and notify the employer, within 10 days, to regularize the situation or to make a statement.

After the expiry of this period, if the situation of the employee in question has not yet been duly regularized, ACT sends, in five days, a participation of the facts to the services of the Public Prosecutors’ Office which now has active legitimacy within the special action to recognize the existence of labour contract.

The Court decision is communicated to ACT and to the Social Security Institute, in order to regularize the contributions from the date on which the labour relationship has been established.

This Law enters into force on August 1st, 2017.

To access the full version of Law no. 55/2017, please click on the following hyperlink: http://data.dre.pt/eli/lei/55/2017/07/17/p/dre/pt/html

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