Labor effects of corporate groups in Portugal
| Autor | David Carvalho Martins |
| Cargo | Lawyer, Guest Lecturer, University of Lisbon Faculty of Law |
| Páginas | 58-64 |
IUSLabor 3/2017
58
LABOR EFFECTS OF CORPORATE GROUPS IN PORTUGAL
David Carvalho Martins
Lawyer, Guest Lecturer, University of Lisbon Faculty of Law
Introduction
In 2015, there were 1.181.406 companies94. Among these we can highlight that
1.180.331 were SMEs (99,9%)95, which employ 78% of the workers96. In 2011, there
were only 444 groups of companies with 7.323 companies; 62% were multinational
corporate groups; more than 50% concentrate their activity in industry and trade97. In
Portugal, the productive structure is largely consisted by small and medium companies
and the number of corporate groups is restricted.
The main labor conflicts concerning corporate groups were related to employment
contract with plurality of employers and to occasional assignment of workers without
complying with the legal requirements (articles 101 and 288 et seq. of the Labor
Code98), posting of workers to companies located abroad and liability for labor
entitlements of parent companies, regardless where their headquarters are located, and
their managers or directors.
1. Is there a definition of corporate group or group of companies in your labor
legal system?
The Labor Law does not define the concept of corporate groups or groups of companies.
Instead, the labor legal system has adopted the definition established under the
Companies Code.
There is a broad definition of affiliated companies (sociedades coligadas) which
includes the concepts of companies in a simple investment relationship (sociedades em
relaçã o de simples par ticipação), companies in mutual investment relationship
(sociedades em relação de participações recíproca s), companies in a parent-subsidiary
94 In 1990, there was approximately 390 thousand companies. See
www.pordata.pt/portugal/empresas+total-2854 (last access: 29.11.2017).
95 See www.pordata.pt/DB/Portugal/Ambiente+de+Consulta/Tabela (last access: 29.11.2017).
96 See www.pordata.pt/Portugal/Pessoal+ao+servico+nas+empresas+total+e+por+dimensao-2896-246502
(last access: 29.11.2017).
97 See “Destaque INE, 19.12.2013” about “Grupos de Empresas em Portugal, 2011”, available at
www.ine.pt.
98 A Portuguese version is available at
http://www.pgdlisboa.pt/leis/lei_mostra_articulado.php?nid=1047&tabela=leis (last access: 29.11.2017).
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