News News Flash – The unconstitutionality of the combined interpretation of Norms of the Labour Code and the Commercial Companies Code 19/07/2021

In Judgment No. 272/2021, the Constitutional Court declared the unconstitutionality, with general mandatory force, of a combined interpretation of norms, of particular relevance, contained in the Labour Code and the Commercial Company Act.

As defined under article 334 of the Labour Code, workers are jointly and severally liable for all labour claims with the employer, any other company that is in a reciprocal, controlling or group relationship with the employer - the Labour Code applies to the Commercial Companies Code.

However, the introductory part of paragraph 2 of Article 481 of the Commercial Companies Code set forth an interpretation according to which this possibility of joint liability would only apply if further companies (other than the employer) had their registered office in Portugal, thus excluding the possibility of holding companies headquartered abroad.

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