Focus on Portuguese investment immigration and understand Portuguese laws and regulations:
Portuguese labor policies and regulations are highly complex. Strict, detailed, and systematic provisions are established in the Labor Code, the Labor Procedure Code, the Civil Code, the Penal Code, the Constitution of the Republic, and various other laws and regulations, which form the foundation of Portugal's labor policy. A summary is provided below:
(I) Enterprise Classification
According to current Portuguese law, enterprises can be classified by the number of employees into micro-enterprises (up to 10 employees), small enterprises (11 to 50 employees), medium-sized enterprises (51 to 200 employees), and large enterprises (over 200 employees).
(II) Labor Contracts
Enterprises and employees should sign a labor contract that clearly specifies wages, job duties, working hours, etc. This includes labor contract promises. Portugal adopts various forms of written contracts depending on the specific circumstances of the work, which are numerous and complex. The main types include:
•Contrato promessa de trabalho; (Promise of Employment Contract)
•Contrato de trabalho a termo; (Fixed-term Employment Contract)
•Contrato de trabalho com trabalhador estrangeiro; (Employment Contract for Foreign Workers)
•Contrato de trabalho em comissão de serviço; (Commissioned Service Employment Contract)
•Contrato de trabalho com pluralidade de empregadores; (Employment Contract with Multiple Employers)
•Contrato de trabalho a tempo parcial; (Part-time Employment Contract)
Note: Part-time work specifically refers to work with no more than 30 hours per week.
•Contrato de cedência ocasional de trabalhador;
During the probationary period, both parties to the contract may terminate the contract without prior notice or any reason, and there is no right to claim compensation. If the probationary period has exceeded 60 days, the employer must provide 7 days' notice to terminate the employee.
(III) Probationary Period
In open-ended employment contracts, the probationary period is generally 90 days (for ordinary jobs), 180 days (for highly specialized technical jobs), and 240 days (for leadership and management positions);
In fixed-term employment contracts, if the contract duration is 6 months or more, the probationary period is generally 30 days; if the contract duration is less than 6 months, the probationary period is generally 15 days;
In commissioned service employment contracts, if agreed upon in advance, the probationary period shall not exceed 180 days.
(IV) Termination of Labor Contracts
If the labor contract specifies a fixed term, the employer wishing to terminate the contract upon expiration must notify the employee in writing at least 15 days in advance. If the employee wishes to terminate the contract upon expiration, they must notify the employer in writing 8 days in advance.
If the labor contract does not specify a fixed term, the employer must notify the employee in writing to terminate the contract at least 7 days in advance (for employment under 6 months), 30 days in advance (for employment between 6 months and 2 years), and 60 days in advance (for employment over 2 years).
If the employer proposes to terminate the contract, they shall provide compensation of 3 days of basic salary per month for employment under 6 months, and 2 days of basic salary per month for employment of 6 months or more.
(V) Rights, Obligations, and Protections of Both Parties
A) Employer Obligations:
•Respect and treat employees well;
•Pay employees reasonable wages commensurate with their work in a timely manner;
•Provide good working conditions for employees, both mentally and physically;
•Provide professional training to employees to improve labor productivity;
•Respect the technical autonomy exercised by employees in accordance with professional standards;
•Provide the possibility for employees to perform their duties in representative bodies;
•Prevent occupational diseases, attach importance to protecting the safety and health of employees, and provide compensation for work-related injuries;
•Implement the provisions of current laws and regulations, and adopt relevant hygiene, safety, and health measures in the enterprise and workplace;
•Provide employees with information on the risks of work-related accidents and diseases, and provide necessary training;
•Timely update the personal registration data of employees in the workplace, including name, date of birth, date of entry, contract type and level, promotions, remuneration, start dates, vacations, and absenteeism (which implies salary deductions and reduction of vacation time).
B) Employee Obligations:
•Be honest and polite to the employer, superiors, colleagues, and other personnel related to the company;
•Be punctual for work regardless of weather conditions;
•Be enthusiastic and diligent in work;
•Under the premise that their own rights and interests are guaranteed, employees must obey orders and follow instructions;
•Be loyal to the employer, do not poach the employer's business, and do not disclose the company's production methods and trade secrets;
•Safeguard, cherish, and correctly use the production materials provided by the employer;
•Promote and implement various measures conducive to improving labor productivity;
•Cooperate with the company to improve the safety, hygiene, and health system at work through elected representatives;
•Comply with national laws and regulations on safety, hygiene, and health established by the employer.
(VI) Working Hours:
Labor law stipulates that "the normal daily working time shall not exceed 8 hours, and the weekly working time shall not exceed 40 hours." Time outside of "normal working hours" is considered overtime, and daily overtime shall not exceed 2 hours. Specifically for micro and small enterprises, the total annual overtime for an employee shall not exceed 175 hours; for medium and large enterprises, the total annual overtime for an employee shall not exceed 150 hours. Remuneration for the first hour of overtime is paid at 150% of the "normal working hours" wage, 175% for subsequent hours, and 200% for weekends and public holidays.
Work between 22:00 and 07:00 the next day is considered night shift work (including the rest period from 0:00 to 5:00), with a minimum duration of 7 hours and a maximum of 11 hours. It is remunerated at 125% of daytime work.
(VII) Wages and Subsidies:
Portuguese law explicitly stipulates equal pay for equal work. Employee wages can be fixed or floating, but they must not be lower than the statutory minimum wage (specifically adjusted and determined by government law each year).
Employee wages must be paid in cash, unless both parties agree to pay part of the remuneration in other ways, but the amount shall not exceed the amount paid in cash. Employers may pay wages by bank check, money order, or by depositing into the employee's current account.
Employee wages must be paid on time and, unless otherwise provided by government law, shall not be delayed or deducted.
Employees can receive a Christmas bonus before December 15th of each year, the amount of which is equivalent to one month's salary.
(VIII) Provisions on Weekly Rest and Public Holidays:
1) Employees shall have at least one day of rest per week, and strict regulations and restrictions have been placed on working on Sundays.
2) The following dates are public holidays:
New Year's Day (1 de Janeiro)
Good Friday (Sexta-Feira Santa)
Easter Sunday (Domingo de Páscoa)
Freedom Day (25 de Abril)
Labor Day (1 de Maio)
Corpus Christi (Corpo de Deus)
Portugal Day (10 de Junho)
Assumption Day (15 de Agosto)
Republic Day (5 de Outubro)
All Saints' Day (1 de Novembro)
Restoration of Independence Day (1 de Dezembro)
Immaculate Conception Day (8 de Dezembro)
Christmas Day (25 de Dezembro)
3) Paid Vacation:
A) From the date of signing the labor contract, after working for half a year, employees are entitled to 2 working days of paid vacation for every full month worked, starting from the signing of the contract, with a maximum of 20 working days of vacation in the current year;
B) If the half-year mark from the date of signing the labor contract falls into the next year, the employee may take vacation before June 30th of that year;
C) Within the same year, including the vacation specified in clause B), the employee's paid vacation shall not exceed 30 working days;
D) Within a full working year, the minimum paid vacation for an employee is 22 working days (11 months X 2 days/month);
E) If the contract period is less than 6 months, unless otherwise stipulated, the employee may enjoy 2 working days of paid vacation for every full month before the contract ends;
F) Employers cannot replace an employee's annual leave with financial compensation.
(IX) Protection of Women and Minor Workers:
In addition to enjoying general labor rights, women and minor workers receive special protection. The labor law has made special provisions regarding employment conditions, overtime, night work, and working environment. For example, minors under 16 can only engage in light work and must be reported to the General Inspectorate of Labor (Inspecção-Geral do Trabalho) within 8 days. Minors aged 16 or over who participate in work must spend at least 40% of their normal working time on education and training. Labor contracts signed by minors under 16 must be authorized in writing by their legal representatives; unless their legal representatives object in writing, minors aged 16 or over can sign labor contracts directly, but they must include compulsory education clauses.
Pregnant women can enjoy 30 days of leave before childbirth and 90 days of maternity leave after childbirth. If it is twins, an additional 30 days are added; if it is triplets, an additional 60 days are added, and so on.
Pregnant women are entitled to a maternity subsidy for a minimum of 6 weeks and a maximum of 120 days (if it is twins, add 30 days; if it is triplets, add 60 days, and so on). The subsidy amount is equivalent to the salary, and the minimum shall not be lower than 5% of the Portuguese minimum wage.
