Contracts with companies: changes?

In 2026, there wasn’t a “total revolution” in business contracts in Portugal, but there are important changes and clear trends affecting how companies create and manage contracts.

One of the main new developments is linked to the labor reform under discussion (“Trabalho XXI”), which could significantly alter employment contracts, especially fixed-term contracts. Among the proposals are increasing the minimum and maximum duration of these contracts, greater flexibility in their use, and changes to renewal rules. However, some measures are still under negotiation and may not proceed exactly as planned.

On the other hand, concrete decisions have already been made in 2026: the Government opted not to increase the maximum duration of fixed-term contracts, maintaining the current limits. Furthermore, adjustments are emerging in other areas, such as the time bank (which will become more dependent on agreement) and rules on dismissals and outsourcing, which directly impact contracts between companies and workers.

Changes in public procurement and contracts with the State are also noteworthy. In exceptional situations (such as special regimes approved in 2026), there has been a simplification of procedures, less bureaucracy, and faster decision-making in the awarding of public contracts. This facilitates the operation of companies, especially in urgent contexts or those requiring economic support.

Finally, the major trend for 2026 is a greater demand for transparency, control, and contract management. There is more cross-referencing of tax data, greater attention to legal compliance, and a growing need for strategic analysis of contracts (for example, energy or supply contracts). Contracts cease to be “fixed” documents and become active management tools within companies.