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Individual hours bank in Portugal: what the 2026 reform changes

Understand the individual hours bank: why it was banned in 2019 and why it stays banned after the Trabalho XXI reform was rejected on 19 June 2026.

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The individual hours bank has been banned in Portugal since 2019. The Trabalho XXI labour reform wanted to bring it back, through a direct agreement between you and the company. But the bill was rejected by the Assembly of the Republic on 19 June 2026: the individual hours bank stays banned.

This guide explains first what the hours bank is and why it was banned. Then what the reform wanted to change and why it was one of the most criticised points.

What the hours bank actually is

The hours bank is a way to organise working time. Instead of paying the extra hours as overtime, the company stores them in a kind of account. Later, you use those hours as time off.

The idea is to give both sides flexibility: the company asks for more hours when it needs them, you rest when there is less work. The problem is the balance. If the management of the time off is not clear, you work the extra hours and never recover them properly.

Why the individual hours bank is banned

The word "individual" is the key. It means a direct agreement between one worker and the company, with no union in between.

That individual hours bank used to exist (the former Art. 208-A of the Labour Code). But Law 93/2019 repealed it. Since 1 October 2019, no new individual hours bank agreements can be made. The ones that existed ended a year later.

Today the hours bank only exists in two formats, and neither is by individual agreement:

RegimeHow it is createdLimitsStatus in 2026
By collective agreement (Art. 208)Collective agreement (union and company)Up to 4h/day, 60h/week, 200h/yearIn force
Individual (Art. 208-A)Direct worker-company agreement(removed)Repealed in 2019
Group (Art. 208-B)Referendum approved by 65% of workersUp to 2h/day, 50h/week, 150h/yearIn force

[Common interpretation:] the legislator removed the individual hours bank because, in a direct agreement, a worker alone has little bargaining power. It left only the collective formats, where the union or a group of workers balances the conversation.

What the Trabalho XXI reform wanted to change

[Bill:] everything in this section was in the Trabalho XXI bill, rejected in the first general vote on 19 June 2026. It is not law and never came into force.

The reform wanted to bring back the hours bank by agreement, which means the direct agreement between you and the company again. According to the Government's documents, it would have worked like this:

  • Express agreement required. Without your written yes, there is no hours bank. The company cannot impose it.
  • Hours taken within 6 months. The credit hours must be used as time off within a maximum of six months.
  • Or paid with +25%. If you do not take them in that period, the company pays them at the end, with a 25% increase.
  • Request with 3 days notice. The company has to give at least three days notice to use the hours bank.

[Common interpretation:] on the hour limits, the bill pointed to the values of the current group regime, that is, up to 2 hours per day and 150 hours per year. With the rejection, these numbers were never fixed in law.

See what those hours would be worth as overtime

Before accepting an hours bank, do the maths. The overtime guide shows how much you would get if those hours were paid as supplementary work, with the right percentages by type of day.

Open the guide →

Why it is so criticised

The individual hours bank was one of the most contested points of the reform. It was at the centre of the criticism in the general strike of 3 June 2026, and the vote against the package on 19 June stopped its return.

The reason is simple. It swapped the immediate payment of overtime for deferred rest. And it put the worker alone in front of the company again, with no union to balance things, which is exactly what Law 93/2019 wanted to avoid.

[Common interpretation:] the practical risk raised was that you work many extra hours in a peak period and then cannot take them off when you need to. With the rejection, that debate is over for now: the individual hours bank stays banned.

What does not change

  • The current law stays in force. With the rejection on 19 June 2026, there is no reform to publish: the individual hours bank stays banned.
  • Your agreement is always needed. No hours bank regime, current or proposed, can be imposed on you without agreement.
  • Unused hours get paid. If you leave the company with credit hours, the company pays them in the final settlement.
  • The schedule limits on daily working time stay as a general brake.

What you should do now

  • Do not sign in a rush. If the company proposes an hours bank, read it carefully and understand how you will use the hours.
  • Confirm it is in writing. The express agreement is your protection. Keep a copy.
  • Count your hours. Keep your own record of the extra hours and the time off you took.
  • Check your collective agreement. It may already have an hours bank with its own rules for your sector.

To understand the whole reform package and what happened in the vote, see the guide on the 2026 labour reform and dismissal.

This guide is for information purposes and does not replace individual legal advice.

Frequently asked questions

What is the individual hours bank?+
It is a regime where you and the company agree that you work more hours in some weeks and take time off in others, with no immediate overtime pay. The extra hours go into a credit so you can rest later. The individual hours bank (a direct worker-company agreement) has been banned since 2019. Today the hours bank only exists through a collective agreement (Art. 208) or as a group bank approved by referendum (Art. 208-B).
Is the individual hours bank legal in Portugal in 2026?+
No. The individual hours bank was repealed by Law 93/2019 and has not been allowed since 1 October 2019 (the former Art. 208-A). Old agreements ended a year later. The Trabalho XXI reform wanted to bring it back as an hours bank by agreement, but it was rejected by the Assembly of the Republic on 19 June 2026. It stays banned.
Am I required to accept an hours bank?+
No. No hours bank can be imposed on you. Under the regimes in force, the hours bank comes from a collective agreement (Art. 208) or from a group referendum approved by 65% (Art. 208-B), with the safeguards of those regimes. The Trabalho XXI bill, which wanted to create an hours bank by individual agreement, was rejected on 19 June 2026.
With an hours bank, do I stop getting paid for overtime?+
Yes, in the short term: that is the logic of any hours bank. The extra hours are not paid as supplementary work in the month. They go into a credit and you rest later, under the terms of the collective agreement or group regime that applies. The Trabalho XXI rules (6 months to take the hours, then payment with a 25% increase) never came into force: the bill was rejected on 19 June 2026.
How many hours can I bank?+
It depends on the regime. In the hours bank by collective agreement (Art. 208), the normal period can rise by up to 4 hours per day, reach 60 hours per week, with the increase capped at 200 hours per year. In the group bank by referendum (Art. 208-B), the limit is 2 hours per day, 50 hours per week and 150 hours per year. The Trabalho XXI bill pointed to the same limits as the group regime, but it was rejected.
When do I have to use the banked hours?+
It depends on the regime that applies to you: the time-off deadlines are set in the collective agreement (Art. 208) or in the rules of the group regime (Art. 208-B). The Trabalho XXI rules (6 months to take the hours, payment with a 25% increase, 3 days notice) were rejected on 19 June 2026 and are not in force.
What is the difference between an hours bank and adaptability?+
They are two different flexible-schedule regimes. Under adaptability, the company sets longer hours in some periods and shorter ones in others, within an average. Under the hours bank, you build up extra hours that go into a credit for time off later. Both spread out working time, but they follow their own rules in the Labour Code.
What happens to the banked hours if I leave the company?+
If you still have credit hours not yet taken when the contract ends, the company has to pay you for those hours. The hours bank is meant for time off later, but whatever you did not use is converted into money in the final settlement. Keep your record of the hours to check the amounts.

Official sources

5 references

This guide is for informational purposes only and does not constitute legal advice. For your specific situation, consult a lawyer or official authority. Found an error? Let us know at ola@despacho.pt.