Glossary

despedimento coletivo

Published 4 November 2026, 21:42
despedimento coletivo (collective redundancy)

Collective redundancy: the employer ends the contracts of several workers at once or within a three-month period, for reasons that have nothing to do with the workers themselves — closing part of the business, cutting staff, restructuring production. It follows a written procedure: notifications, negotiation of terms, the involvement of the relevant ministry and compensation (Código do Trabalho, articles 359–⁠366).

Where you come across it. Job cuts, closures of sites and departments, DGERT labour market statistics.
This is not a dismissal for misconduct: the reason has nothing to do with the worker. If there are no written notices and no deadlines, the procedure has not been followed.