The Portuguese government has admitted that it is looking at the possibility of reducing dismissal compensation from 20 days of pay per year of service to 10 days.
According to a study conducted by the government, the average dismissal compensation in the European Union is between six and 10 days of pay per year of service.
The government wants labour costs to be in line with those in the EU in order to make the labour market more competitive and thus more productive.
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