The Principle of Proportionality in Just Cause for Dismissal

By André da Silva Paulos, Cooperate Legal Services, Ltd.

In labour law, the principle of proportionality requires dismissal to always be a last resort. But when trust is broken, is there still room for tolerance? Is the gravity of a labour breach measured in euros or in the intangible value of loyalty? In these terms, an analysis of the Lisbon Court of Appeal (TRL) ruling of 29 April 2026, delivered in Case No. 2865/25.4T8FNC.L1-4 (available for consultation at dgsi.pt), is considered pertinent. In this case, it was proven that an employee with 28 years of service tampered with a price tag on a takeaway product alongside a colleague, resulting in a financial gain of €0.75. The employer dismissed the employee for just cause. Upon challenging the dismissal, the employee's claim was dismissed by the Court of First Instance. On appeal to the TRL, the court upheld the decision, arguing that the breach of trust is qualitative and that the employee's length of service and the minute value of the financial gain are aggravating factors to be considered, and that betraying 28 years of loyalty to the company and a clean disciplinary record demonstrates intent (dolo) that renders the continuation of the employment relationship unviable. As we shall see, this decision is not immune to criticism.... continued in the PDF...