Portugal's new Labor Reform law regulates the use of AI

Portugal's new Labor Reform law regulates the use of AI - Portugal Business News

HR News Portugal - Portugal's new Labor Reform law will regulate the use of AI and companies will require human supervision, according to an announcement by the Government of Portugal on May 19, 2026.

What is Portugal's new Labor Reform law?

Portugal's new Labor Reform law establishes new rules for the use of AI in the labor market, strengthening human supervision in business decisions.

Portugal's draft Labor Reform law stipulates that no decision regarding workers can be made exclusively based on algorithms. The legislation establishes that there must always be human intervention in recruitment processes, worker evaluation, the application of disciplinary sanctions, and the termination of employment contracts.

The Government of Portugal stated that the new Labor rules strengthen the protection of workers in the face of challenges in the digital economy and in the 21st-century labor market.