Liability For Employment Credits In International Groups

Judgment no. 272/2021

Following the decisions in several specific cases, the Constitutional Court has declared, with mandatory and general force, the unconstitutionality of the joint interpretation of the rules contained in article 334 of the Employment Code and article 481(2) of the Commercial Companies Code. The rules the Constitutional Court held to be unconstitutional are the ones that excuse a company based outside Portugal that is in a reciprocal shareholding, control or group relationship with a Portuguese company from joint and several liability for the debts arising from the latter's relationships with its employees or from the termination of those relationships (employment credits).