SRS Legal Shots: Portuguese Constitutional Court Upholds Rule Limiting Outsourcing After Dismissals

SRS Legal's Employment and Social Security Department leans over Judgment No. 555/2025 of the Portuguese Constitutional Court, ruling that Article 338-A of the Labour Code—introduced by the Decent Work Agenda in 2023—is not unconstitutional. The provision prohibits companies from resorting to external service providers (outsourcing) to meet needs previously fulfilled by workers who were subject to collective dismissal or whose positions were terminated, within the 12 months following such dismissals.