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The entry into force of Law 2/2025 obliges companies to review the termination of contracts due to permanent disability.

  • It is no longer an automatic cause for termination of the employment contract and requires an assessment of the employee’s will and the feasibility of reasonable adjustments to the job.

With the entry into force of Law 2/2025, the declaration of severe disability or total or absolute permanent disability is no longer an automatic cause for termination of employment. The law amends Articles 48.2 and 49.1 e) of the Workers’ Statute, establishing a new framework that requires each situation to be analyzed individually.

Under the new regulations, following the declaration of permanent disability, the employee may express his or her wish to continue working for the company. This declaration obliges the company to analyze whether it is possible to maintain the employment relationship by means of reasonable adjustments to the job or, as the case may be, through assignment to a position compatible with the worker’s situation.

Only when it is proven that such adjustments or outplacement are not possible, or place an excessive burden on the company, may the contract be terminated in accordance with the regulations in force.

In this context, Maria Gomes, head of the Firm’s Labor Law Department, points out that, “this regulatory change affects all companies, which must adapt their actions to avoid decisions contrary to law, and strengthens the position of the employee, who now has a legal framework aimed at preserving employment whenever possible”.

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