Employment law in Poland
Employment Law in Portugal is primarily governed by the Labour Code (Código do Trabalho), which outlines the rights and obligations of both employers and employees. Portugal has a well-developed legal framework that protects workers' rights, emphasizes social protection, and ensures fair working conditions. The law covers a range of employment-related topics, including contracts, working hours, wages, leave entitlements, health and safety, and termination procedures.
Here’s an overview of employment law in Portugal:
1. Employment Contracts
Written Contracts: In Portugal, it is mandatory for employers to provide written contracts for employees, especially for permanent contracts. While a verbal agreement may be legally valid, having a written contract helps clarify terms and conditions for both parties.
Types of Contracts:
Indefinite-Term Contracts (Permanent Contracts): The most common type of contract, providing job security until the employee is dismissed for a legitimate reason.
Fixed-Term Contracts: These contracts are for specific durations or for specific tasks. Fixed-term contracts can only be used under certain circumstances, such as for temporary projects, seasonal work, or to replace employees on leave (e.g., maternity leave).
Temporary Contracts: These are often used for short-term needs, and the law restricts their use to prevent abuse (e.g., fixed-term contracts should not be renewed repeatedly to avoid permanent contract rights).
Probation Period: New employees may be subject to a probationary period that typically lasts from 30 days to 180 days, depending on the job. During the probation period, either the employer or the employee can terminate the contract with shorter notice.
2. Working Hours
Standard Working Hours: The standard workweek in Portugal is 40 hours, usually spread over 5 days (Monday to Friday), typically with 8 hours per day.
Overtime: Overtime is allowed but is subject to specific regulations:
Overtime must be paid at a higher rate (usually 25% more for the first 2 hours, and 50% more for hours beyond that).
The total number of overtime hours cannot exceed 2 hours per day or 200 hours per year.
Rest Periods: Employees are entitled to a minimum of 11 consecutive hours of rest between shifts and at least 1 day off per week (typically Sunday). Rest breaks during the workday are mandatory, with specific time limits depending on the duration of the workday.
3. Minimum Wage
National Minimum Wage: Portugal sets a national minimum wage that applies to all workers, regardless of the sector. As of 2025, the minimum wage is €760 per month for full-time employees, though this amount can vary by region or sector.
Payment of Wages: Wages are typically paid on a monthly basis. Employers are required to provide employees with a payslip that outlines the gross wage, deductions (such as taxes and social security contributions), and the net pay.
4. Leave and Holidays
Annual Paid Leave: Employees are entitled to a minimum of 22 working days of paid vacation per year, which can increase depending on collective agreements or the employee's seniority.
Public Holidays: Portugal observes several national public holidays, such as New Year’s Day, Carnival, Easter, Labour Day, Portugal Day, Christmas, and others. If employees work on a public holiday, they are entitled to extra pay (usually double time) or a compensatory day off.
Sick Leave: Employees are entitled to sick leave with social security benefits:
The first 3 days of sick leave are unpaid.
After the 3rd day, social security covers the payment for sick leave, which ranges from 55% to 100% of the employee’s salary, depending on the duration and severity of the illness.
Maternity and Paternity Leave:
Maternity Leave: Mothers are entitled to 120 days of paid maternity leave, which can be extended up to 150 or 180 days if shared with the father. The leave is paid at 100% of the salary.
Paternity Leave: Fathers are entitled to 20 working days of paternity leave, with 100% pay for the first 5 days and the remainder covered by social security.
Parental Leave: Parents can share up to 26 weeks of parental leave, which can be taken in various ways to suit the needs of the family.
5. Termination and Dismissal
Notice Period: The notice period required for termination of employment depends on the length of the employee’s service:
Less than 1 year: 15 days notice.
1-5 years: 30 days notice.
More than 5 years: 60 days notice.
Dismissal: Dismissal must be for a valid reason, such as gross misconduct, poor performance, or economic redundancy. Employees are protected from unfair dismissal.
Employees who are dismissed without just cause may be entitled to severance pay, which is determined based on the length of service.
Severance Pay: Employees with more than 1 year of service are entitled to severance pay upon dismissal without cause. The amount is generally calculated as:
20 days of pay for each year of service.
Redundancy: Employees may be entitled to severance pay if laid off due to economic reasons. The redundancy process must follow specific procedures, including consultation with the employee and the works council or union, if applicable.
6. Employee Rights and Protection
Non-Discrimination: Discrimination based on gender, age, race, sexual orientation, disability, religion, or national origin is prohibited. Equal treatment in hiring, promotion, and pay is guaranteed under Portuguese law.
Health and Safety: Employers must ensure a safe and healthy work environment. The Health and Safety at Work Act requires employers to comply with workplace safety regulations and provide employees with the necessary training and equipment to prevent accidents.
Harassment: Harassment, including sexual harassment, is prohibited by law. Employees who experience harassment have the right to file complaints with the employer or relevant authorities. Employers must take immediate action to investigate and address complaints.
7. Social Security and Benefits
Social Security: Portugal has a comprehensive social security system that covers pensions, healthcare, unemployment benefits, and disability benefits. Employees and employers both contribute to the system through payroll deductions.
Unemployment Benefits: Employees who lose their job are eligible for unemployment benefits, provided they have worked for at least 360 days over the past 24 months. Benefits are typically paid at a percentage of the previous wage, and the amount depends on the employee's contributions and work history.
Health Insurance: Portugal has a public healthcare system that provides basic health coverage to all residents. Private health insurance is also available, and some employers offer private insurance as part of employee benefits.
8. Trade Unions and Collective Bargaining
Trade Unions: Workers have the right to form and join trade unions. Unions play an important role in negotiating collective bargaining agreements that set wages, benefits, and working conditions across various sectors.
Collective Bargaining: Collective agreements are common in sectors like public services, transport, and construction, and they often set higher standards than the minimum legal requirements for wages, hours, and other working conditions.
Works Councils: In companies with more than 50 employees, a works council may be established to represent employees' interests in matters such as health and safety, restructuring, and workplace policies.
9. Foreign Workers
Work Permits: Nationals of EU/EEA countries do not require a work permit to work in Portugal. Non-EU nationals must obtain a work permit, which is usually linked to an employment contract. Work permits are often granted to individuals with specific skills that are in demand in the country.
Rights of Foreign Workers: Foreign workers have the same rights as Portuguese employees, including access to social security, the right to join trade unions, and protection from discrimination.
Conclusion
Employment law in Portugal offers strong protections for workers, ensuring fair treatment, job security, and access to benefits like paid leave, maternity and paternity leave, and social security. The legal framework is designed to foster a balanced relationship between employers and employees, with clear guidelines on contracts, working hours, wages, and termination procedures. While the system is generally favorable to workers, it also allows for flexibility in certain areas, such as fixed-term contracts and overtime work, to accommodate the needs of employers and the economy.
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