Employment law.in Portugal

An employment lawyer supports the employee, among other matters, in hiring, dismissal, claims for unpaid employment entitlements and situations of harassment, from the first piece of advice to proceedings in the labour court. The lawyers at NAA defend employees in Lisbon and across the country. And because we know both sides, we also help employers who want to comply with the law.

The essentials

  • If you want the dismissal suspended at once, you have only 5 working days from notification of the dismissal to apply to the court for an interim order suspending it (art.º 386.º do Código do Trabalho).
  • To challenge the dismissal in court, the deadline is 60 days from notification of the dismissal (art.º 387.º).
  • If the dismissal is declared unlawful, the employee may, as a rule, choose between reinstatement and compensation based on length of service.
  • Faced with a serious breach by the employer, such as wages more than 60 days overdue, the employee may terminate the contract with just cause. Once that just cause is proven, they are entitled to compensation for the termination.
  • Employment claims (holiday pay, allowances, overtime) become time-barred one year after the contract ends (art.º 337.º).

This page is a general introduction to the rights of those who work, in light of the Portuguese Labour Code (Código do Trabalho, Lei n.º 7/2009). Each case, however, turns on the details, on what is written in the contract, in the payslips and in the communications exchanged with the employer. These texts are meant to guide, not to replace an analysis of your case.

Before you sign, accept or let a deadline pass, speak to a lawyer.

What does an employment lawyer do?

An employment lawyer supports the employee throughout the whole employment relationship. It begins right at the hiring stage, reviewing and negotiating the contract. The lawyer then helps day to day, with questions about working hours, duties, pay or changes imposed by the company. When a dispute arises, the lawyer examines the contract, the payslips and the employer's communications. Depending on the case, the lawyer replies to the written statement of disciplinary charges (nota de culpa), challenges the dismissal within the deadline or claims the employment entitlements that have not yet lapsed under the limitation period. In harassment cases, the lawyer assesses the facts, helps to gather and preserve the evidence and to decide the best way forward, from an internal complaint to court proceedings. On the employer's side, the work is different. The lawyer helps to hire within the law, to conduct disciplinary proceedings or a dismissal free of the defects that later render it void, and defends the company if the case reaches the labour court. The phrase "employment law specialist lawyer" should be used precisely, because the Ordem dos Advogados reserves that title for those who have obtained it under its regulations. The lawyers at NAA do not claim it. What counts, in our experience, is regular practice in dismissals, employment claims and harassment, with attention to time limits that in this area tend to be short.

The lawyers at NAA advise and represent both employees and employers, in Lisbon and across the country. Whatever your case, the sooner we see it, the more we can do. The first consultation costs 90 euros (VAT included). Book an appointment or meet the team.

What does employment law deal with?

Employment law governs the relationship between the person who provides work and the person who receives it, from the moment the contract is signed to the day it ends. It is a body of law built, in large part, to correct the imbalance between the two parties. The employee depends on the wage, the employer gives orders and organises the company. That is why many of its rules are mandatory, that is, they cannot be set aside by agreement to the employee's detriment.

Most matters are set out in the Código do Trabalho, approved by Lei n.º 7/2009, of 12 February, which has been amended over the years. We mainly assist employees, but the same law binds employers. We also help those who want to organise their company in compliance with it. Compensation for workplace accidents is set out in a separate statute (Lei n.º 98/2009), which the lawyers at NAA handle on a dedicated page.

The employment contract

There is an employment contract whenever someone provides their work to another person, in return for pay, under that person's authority and direction. In practice, the decisive element is subordination. Keeping to set hours, taking orders, forming part of the company's organisation, using the employer's tools or receiving a sum on a regular basis are signs that an employment contract may exist.

This matters above all when the relationship is presented as a service arrangement or self-employed contractor invoices (recibos verdes). The name given to the contract is not decisive. If, in reality, the person works in a subordinate manner, there may be grounds to recognise an employment contract (art.º 12.º).

Open-ended contract

The open-ended contract is the rule. Also called permanent or of indefinite duration, it has no end date and can only terminate in the situations provided for by law. It is the form that gives the employee the most stability.

Fixed-term contract

A fixed-term contract is only permitted in the situations provided for by law and must correspond to a temporary, specific and genuine need of the company, not to a permanent post. The justifying reason must be set out in the contract, in writing. A vague or generic formula is not enough. If the reason is missing, insufficient or does not match reality, the contract may be treated as open-ended. In that case, the employee may be recognised as permanent.

  • Fixed end date: it has a set date to terminate. In total it cannot exceed two years (art.º 148.º) and allows up to three renewals, the sum of which cannot exceed the contract's initial term (art.º 149.º);
  • Uncertain term: it has no set date. It lasts as long as the situation that justified it continues, for example to replace an employee who is justifiably absent, such as a worker on maternity leave or someone on certified sick leave (baixa médica). It ends when that need disappears, subject to a maximum limit of four years (n.º 5 do art.º 148.º).

A fixed-term contract without a valid reason converts into an open-ended contract. In other words, if the term has no genuine justification, the contract takes effect as permanent, which works in the employee's favour. A legal analysis of your contract helps to clarify your situation.

The probationary period

At the start of the employment relationship there may be a probationary period, during which employee and employer assess whether they want to keep the contract. Either party may end it without giving a reason and (as a rule) without compensation (art.º 112.º). Its length depends on the type of contract and the duties:

  • Open-ended contract: as a rule 90 days; 180 days for duties of particular complexity or trust and for those seeking their first job or in long-term unemployment; 240 days for management posts and senior staff;
  • Fixed-term contract: 30 days for contracts of six months or more and 15 days for those of shorter duration.

Even so, the probationary period is not a rule-free zone. Its termination cannot be abusive or discriminatory and, beyond a certain length, notice is required. If the employee has already performed the same duties for the same employer, the period may be reduced or may not exist at all, as it is no longer justified.

Working time, rest and holidays

As a rule, normal working time cannot exceed eight hours per day and forty hours per week, without prejudice to special regimes, adaptability schemes, hour banking or collective bargaining instruments. Work performed outside normal hours is overtime (trabalho suplementar). It entitles the employee to additional pay and, in certain situations, to compensatory rest.

The employee is also entitled to daily rest, weekly rest and holidays, as a rule 22 working days per year, without loss of pay. In addition to holiday pay, the holiday allowance and the Christmas allowance are due.

In the event of a dispute, evidence is essential. Payslips, time records, shift schedules, messages and e-mails can make the difference when claiming overtime, allowances or underpaid wages.

Employment entitlements

When the contract ends, amounts owed to the employee often go unpaid. These are known as employment entitlements. Among the most common are accrued but untaken holiday and the corresponding holiday allowance, the pro rata amounts for the year of termination, overtime, commissions, bonuses, underpaid wages and the compensation for termination of the contract.

There is a deadline that it is important not to miss. Entitlements arising from the employment contract, from its breach or termination are, as a rule, subject to a one-year limitation period running from the day after the contract ends (art.º 337.º). Once that year has passed without proceedings being filed in court, the right may be extinguished. A simple letter to the employer is not, as a rule, enough to stop time running.

A year passes quickly. If amounts are owed, seek advice right after termination, before the limitation period runs out.

Dismissal and redundancy

The employer cannot dismiss at will. Dismissal without just cause is prohibited by the Constitution and the law requires grounds and a procedure. The main forms are dismissal for conduct attributable to the employee, dismissal for elimination of the post (individual redundancy), collective redundancy and dismissal for unsuitability.

For conduct attributable to the employee (just cause)

Dismissal for conduct attributable to the employee is disciplinary dismissal. It requires culpable conduct by the employee which, by its seriousness and consequences, makes it immediately and practically impossible to maintain the employment relationship (art.º 351.º). There must be disciplinary proceedings, with a written statement of disciplinary charges and the right to a defence. If the procedure is not followed, or if the facts are not serious enough, the dismissal may be unlawful. The question of unemployment benefit calls for care because, where just cause attributable to the employee is invoked, it may be necessary to show that the dismissal was challenged in court (art.º 9.º do Decreto-Lei n.º 220/2006).

For elimination of the post

This applies when the post is no longer needed for market, structural or technological reasons and there is no other compatible post. The redundancy must be genuine. The company must follow the procedure, demonstrate the grounds and respect objective criteria. It gives the right to compensation and to the other entitlements on termination.

Collective redundancy

This covers the termination of several contracts at the same time (the minimum number varies with the size of the company), for the same reasons as individual redundancy. It has its own procedure, with an information and negotiation phase. It gives the right to compensation and can be challenged if the grounds are missing, if the procedure is not followed or if the legal criteria are breached.

Dismissal for unsuitability

Dismissal for unsuitability occurs when the employee is no longer able to perform the duties, under the terms provided for by law. It is a demanding concept and cannot be used as a disguised way to remove someone without disciplinary grounds or a genuine change in the post.

Unlawful dismissal: what are the employee's rights?

A dismissal is unlawful, in particular, where there is no just cause, where the reason invoked is not proven, where the procedure fails or where it rests on a prohibited motive, such as discrimination, victimisation or pregnancy. Once the dismissal is declared unlawful, the law gives the employee a set of rights (art.º 389.º et seq.):

  • the back pay from the dismissal until the decision becomes final, with the deductions provided for by law;
  • compensation for pecuniary and non-pecuniary loss, where it exists and is proven;
  • reinstatement in the same post, with the length of service they had, or, alternatively, compensation that is, as a rule, between 15 and 45 days of basic pay and seniority payments for each year of service, with a minimum of three months (art.º 391.º).

The choice between reinstatement and compensation is, as a rule, the employee's and should be weighed carefully. Reinstatement preserves the career and the length of service. Compensation may be preferable when a return to the company is no longer viable. In micro-enterprises or in administration and management posts, the employer may ask the court to set aside reinstatement, showing that the return would be seriously harmful.

Reinstatement is not the only path. The employee may opt for compensation. The choice has consequences and should be weighed with legal support.

How to challenge a dismissal and what is the deadline?

The time limit for challenging an individual dismissal in court is short: 60 days from receipt of the dismissal notice, or from termination of the contract if later (art.º 387.º). For an individual dismissal notified in writing, the claim is brought in the labour court, using a specific form. For collective redundancy, the time limit is six months from termination (n.º 2 do art.º 388.º).

These are strict time limits. They cannot be suspended or interrupted. Once they expire, it is no longer possible to dispute the unlawfulness of the dismissal.

It is only 60 days. If you believe you were dismissed without reason, keep the dismissal letter and all the documents and speak to a lawyer immediately.

Unpaid wages: can the employee terminate the contract with just cause?

The employee can also bring the contract to an end with just cause when the employer seriously breaches its duties (art.º 394.º): unpaid wages, a culpable failure to provide safe working conditions, breach of the employee's legal guarantees, harassment or attacks on their integrity or dignity.

The termination is notified in writing, stating the facts, as a rule within 30 days of becoming aware of them (art.º 395.º). In the case of unpaid wages, non-payment that continues for 60 days is presumed to be culpable, with the 30 days counted from the end of that period. Where just cause is established, there is a right to compensation between 15 and 45 days of basic pay and seniority payments for each year of service, with a minimum of three months (art.º 396.º).

Do not confuse this with simple resignation, which requires notice and gives no right to compensation. Terminating with just cause where that cause is not proven may leave the employee liable to compensate the employer. Before proceeding, it is worth analysing the documents, the deadlines and the evidence.

Psychological harassment at work (bullying)

Harassment is prohibited by law (art.º 29.º). Harassment occurs when unwanted conduct disturbs or distresses the person, affects their dignity or creates an intimidating, hostile, degrading, humiliating or destabilising environment. In psychological harassment (bullying) there is rarely a single episode. Rather, there is a pattern of behaviour: isolation, removal of duties, humiliation, constant criticism, impossible targets or unjustified pressure.

The difficulty almost always lies in the evidence. Keep messages, e-mails, written orders, appraisals, changes of duties and the contact details of witnesses. Where there is an impact on health, medical reports help. Harassment may give a right to compensation, constitute a very serious administrative offence under labour law and provide grounds to terminate the contract with just cause.

The labour court

Employment disputes are heard in the labour divisions of the courts, under their own rules designed for a faster resolution. Many cases begin with a preliminary hearing of the parties, in which the judge tries to bring employee and employer to a settlement. If no settlement is reached, the case proceeds. In Lisbon, these labour divisions form part of the Lisbon District Court (Tribunal Judicial da Comarca de Lisboa). Which division hears a case depends on the circumstances. As a rule, it falls to the division for the domicile of the party being sued (art.º 13.º of the Código de Processo do Trabalho). Where an employee brings a claim under the employment contract, the law allows them to choose instead between the division for the place where the work is carried out and the one covering their own domicile (art.º 14.º).

Not all disputes reach court. Some are resolved through negotiation, through a reasoned demand to the employer or through a well-prepared termination by mutual agreement (acordo de revogação). In others, court proceedings are the way to protect one's rights. Those on low incomes can apply for legal aid (apoio judiciário) through Social Security (Segurança Social).

Talk about your case

Each situation depends on the facts, the documents and the deadlines. This page gives the general framework, but does not replace an analysis of your case. If you have been dismissed, received a written statement of disciplinary charges, are owed wages, are being pressured to sign an agreement, feel you are the victim of harassment or have doubts about the amounts paid at the end of the contract, seek advice before deciding. In employment law, acting late can greatly limit the options.

Discuss my case

The information on this page is general in nature and provided for information purposes only. It does not replace individualised legal advice, nor does it constitute any commitment as to the outcome of a specific case. The legal references relate to the Código do Trabalho (Lei n.º 7/2009) and to the legislation applicable at the date, and may vary according to the circumstances of each situation. NAA — Sociedade de Advogados.

Knowledge

Clarifications on
employment law.

Myths, real situations, frequently asked questions and definitions, organised so you find them quickly.

Myth

"Without a written contract I have no rights."

Fact

An open-ended employment contract can be valid even if it is not in writing. A written document is required for specific types, such as the fixed-term contract or teleworking.

Myth

"Anyone working under recibos verdes (self-employed contractor invoices) can never have employee rights."

Fact

What counts is the practice, not the label on the contract. Where there is subordination, set hours and integration into the company, the relationship may be recognised as an employment contract.

Myth

"During the probationary period I have no protection at all."

Fact

The termination cannot be abusive or discriminatory, and there are notice rules.

Myth

"A fixed-term contract always renews without any limit."

Fact

It has limits on duration and on renewals. Without a valid reason, it converts into a permanent contract.

Myth

"If the company is in difficulty, it can cut wages."

Fact

In principle, pay cannot be reduced. It can be lowered only in the situations the law expressly allows, and a reduction imposed outside those cases is unlawful.

Myth

"Overtime is part of the job and is not paid."

Fact

Overtime work carries a right to an enhanced rate of pay (art.º 268.º) and, in certain cases, to compensatory rest, within daily and annual limits.

Myth

"Holiday I did not take by the end of the year is lost."

Fact

When it is not taken for a reason attributable to the employer, it carries a right to compensation (art.º 246.º) and may, in certain cases, be taken until 30 April of the following year.

Myth

"I can claim unpaid amounts years later."

Fact

They become time-barred one year after the contract ends (art.º 337.º).

Myth

"Leaving when wages are overdue is just resigning."

Fact

It may be termination with just cause, carrying a right to compensation (art.º 394.º).

Myth

"Workplace harassment is just a demanding boss."

Fact

It is a pattern of conduct that affects a person's dignity, prohibited by law (art.º 29.º).

Myth

"A pregnant employee can never be dismissed."

Fact

The protection is enhanced. Dismissal requires a prior opinion from the equality-at-work commission (CITE) and is presumed to be without just cause (art.º 63.º), but it remains possible where there is a legal ground and the procedure is followed.

Myth

"If I am dismissed for no reason, I am forced to go back to work."

Fact

You may opt for compensation instead of reinstatement.

Myth

"If I am dismissed for just cause, I always receive compensation."

Fact

Where a dismissal for misconduct is well founded, there is no compensation. As for unemployment benefit, as a rule it is paid only to those who can show they have challenged the dismissal in court.

Myth

"By paying compensation, the company can dismiss anyone it wants."

Fact

Dismissal without just cause is prohibited. A legal ground and the corresponding procedure are required, failing which the dismissal is unlawful.

Myth

"I can challenge a dismissal whenever I want."

Fact

The deadline is 60 days from notification of the dismissal (art.º 387.º), and it is a strict time limit after which the right is lost.

Myth

"I signed a termination by mutual agreement, so I can no longer claim anything."

Fact

The release limits future claims, but the law allows a cooling-off period to revoke the agreement in certain circumstances, and some clauses may be invalid.

Common situations at work. See whether, as a rule, there is legal protection. Filter by the answer.

I was dismissed without a written statement of disciplinary charges or any disciplinary proceedings.

Yes, as a rule the law protects you. The absence of a procedure makes the dismissal unlawful.

My fixed-term contract did not state the reason for hiring me.

Yes, as a rule the law protects you. Without a valid reason to justify the term, it is deemed to be open-ended.

I left the company and holiday pay and allowances went unpaid.

Yes, as a rule the law protects you. These are enforceable employment claims, but they become time-barred after one year (art.º 337.º).

I worked overtime that was never paid to me.

Yes, as a rule the law protects you. Overtime work carries a right to an enhanced rate of pay.

I was dismissed for being pregnant.

Yes, as a rule the law protects you. This is dismissal on a prohibited ground, unlawful and subject to enhanced protection.

The employer has gone months without paying my wages.

Yes, as a rule the law protects you. There may be just cause to terminate the contract with compensation (art.º 394.º).

I am subjected to repeated humiliation and isolation at work.

Yes, as a rule the law protects you. This may amount to workplace harassment, carrying a right to compensation (art.º 29.º).

I work under recibos verdes but keep set hours and take orders.

Yes, as a rule the law protects you. There may be a genuine employment contract in disguise.

They made my position redundant but keep hiring for the same role.

Yes, as a rule the law protects you. The redundancy has to be genuine. If it is not, the dismissal is unlawful.

I was not given the Christmas allowance (the mandatory extra month's pay, broadly a thirteenth month).

Yes, as a rule the law protects you. It is owed by law and is recoverable as an employment claim.

I was dismissed and I want to return to the same job.

It depends on the specific case. If the court declares the dismissal unlawful, you can ask for reinstatement with your length of service.

I received the dismissal letter 4 months ago and only now want to react.

It depends on the specific case. For an individual dismissal the deadline is 60 days from notification of the dismissal or from the end of the contract, if later (art.º 387.º), but for a collective dismissal it is six months from the end of the contract (art.º 388.º), so you may still be in time.

I simply resigned and now I want compensation.

No, the law does not protect you. Resignation without just cause carries no right to compensation.

I want to claim amounts 2 years after the contract ended.

No, the law does not protect you. The right has become time-barred (1 year after the termination).

I was let go during the probationary period.

It depends on the specific case. In that period the employer may dismiss without giving a reason, unless the dismissal is abusive, discriminatory or made without the required notice.

The company wants to cut my pay.

It depends on the specific case. Pay cannot be reduced, save for the exceptions the law allows.

I was told to change my duties and my location.

It depends on the specific case. What matters are the limits on changes to your duties and place of work, and the harm caused.

I signed a termination of the contract by mutual agreement.

It depends on the specific case. There is a cooling-off period in which you can change your mind, under certain conditions.

I want to terminate the contract with just cause.

It depends on the specific case. There must be a serious, proven ground. Without it, you may have to compensate the employer.

They think I committed a serious breach of duty at work.

It depends on the specific case. There is just cause only if the conduct is culpable and makes it impossible to maintain the relationship.

My manager is demanding and pressures the team.

It depends on the specific case. Being demanding is not, in itself, harassment. What matters is the pattern, the intent and the effect on dignity.

I did not take all the holiday I was entitled to.

It depends on the specific case. There may be a right to payment, depending on the reason the holiday went untaken.

Essential definitions

It is the fixed part of the remuneration corresponding to the contracted activity for the normal working period, not including allowances, bonuses or other variable payments. It serves as a reference for calculations such as the compensation for termination of the contract.

It is the set of rules governing employment relations in a sector or company, as a rule resulting from collective bargaining, such as a collective agreement or a company agreement. It may set more favourable conditions than those of the general law.

They are additions to pay granted for the worker's length of service, as a rule provided for in a collective labour regulation instrument. They are added to basic pay and, as a rule, count towards holiday pay and towards the calculation of the hourly rate used as the basis for paying supplementary work (art.º 271.º do Código do Trabalho).

It is the time the worker undertakes to work, measured in hours per day and per week. As a rule it may not exceed eight hours a day or forty hours a week (art.º 203.º do Código do Trabalho), save for special arrangements such as the hours-bank scheme or a working-time adaptability scheme.

It is work performed outside the work schedule, that is, outside the hours the worker is required to work. It entitles the worker to a pay supplement under art.º 268.º do Código do Trabalho and, in certain cases, to compensatory rest.

It is the set of duties that defines the worker's position in the company and their status, determining rights such as the minimum pay for the role. The employer may only assign related or functionally connected duties within limits (art.º 118.º do Código do Trabalho).

It is the time of service counted from the start of the employment relationship. It matters for the probationary period, for seniority-based pay increments, for calculating the compensation on termination of the contract, for the notice period and, in certain cases, for the length of holiday.

It is advance notice of the intention to end the contract, given as far in advance as the law requires. It applies, for example, to termination of the contract by the worker (art.º 400.º do Código do Trabalho) and to the expiry of a fixed-term contract.

It is the sum owed to the worker in certain forms of termination of the contract, such as the abolition of the post, collective dismissal or the expiry of a fixed-term contract. On abolition of the post and in collective dismissal it is, as a rule, 14 days of basic pay and seniority-based pay increments for each full year of length of service, counting the fraction of a year proportionally (art.º 366.º do Código do Trabalho). Older contracts may yield higher amounts, because service prior to the 2012 and 2013 reforms counts, as a rule, at 20 or 30 days a year, by force of the transitional regimes. The expiry of a fixed-term contract, in turn, has its own rule, of 24 days of basic pay and seniority-based pay increments for each full year of length of service, likewise counting the fraction of a year proportionally (art.º 344.º).

It is the document the employer must provide at the end of the contract, stating the start and end dates of the employment and the role held (art.º 341.º do Código do Trabalho). It may only mention an assessment of performance if the worker requests it.

The contract and starting work

The label given to the contract is not decisive. What counts is the way the work is actually performed. The law lists indicators, such as the place and the schedule being set by the person the work is done for, the equipment belonging to that person and the regular payment of a fixed sum. Where some of these indicators are present, the existence of an employment contract is presumed (art.º 12.º do Código do Trabalho).

As a rule, only if it was made in writing, stating the specific and genuine reason that justifies it. Without that, or with a false reason, it is treated as an open-ended contract. There are limited exceptions, such as the very short-term contract (art.º 142.º do Código do Trabalho), which does not require written form.

Two years in total at most, adding the initial term of the contract and the renewals (art.º 148.º do Código do Trabalho). It may be renewed up to three times, but since 2019 the renewals, all together, may not last longer than the initial term (art.º 149.º). Once the limit passes, the worker becomes permanent. In practice, a contract with an initial term of six months can be renewed for at most a further six months, reaching one year in total. One with an initial term of one year may reach two.

It is a contract that lasts while the situation that gave rise to it continues, for example to replace someone on sick leave. It ends when that need no longer exists, with prior notice.

In an open-ended contract, as a rule 90 days, 180 for duties of special complexity or trust and for those seeking a first job or in long-term unemployment, and 240 for management posts. In fixed-term contracts, 30 days for those lasting six months or more and 15 days for shorter ones (art.º 112.º do Código do Trabalho).

As a rule either party may end the contract freely, with no reason given and no compensation. But it may not be abusive or discriminatory, and beyond a certain duration it requires prior notice.

As a rule, it does not start again from scratch. The time already worked there in the same activity is deducted from the new probationary period (art.º 112.º, n.º 4 do Código do Trabalho). For example, in a 90-day probationary period, someone who has already worked 60 may only have to serve the remaining 30. Someone who has already worked 90 or more may have no new probationary period. This also applies to a previous fixed-term contract, temporary work, contract for services or internship. For duties different from those already performed at the company, the employer is allowed to set a full probationary period.

This is called a falso recibo verde (a bogus self-employment arrangement): a contract for services that conceals a genuine employment contract. It is identified by the indicators in art.º 12.º do Código do Trabalho: place and schedule set by the beneficiary, the beneficiary's equipment and a fixed sum paid regularly, not depending solely on the result. Where some of these are present, an employment contract is presumed. You can report it to the ACT, which notifies the employer to regularise the situation and refers the matter to the public prosecutor (Ministério Público) if the employer does not comply. In that case, it is the public prosecutor that brings the action to recognise the existence of an employment contract (Lei n.º 63/2013). The worker may also seek recognition of the employment relationship on their own, through ordinary declaratory proceedings.

Changes to the contract and mobility

Within limits. The employer may assign duties not covered by the contracted activity when the company's interest justifies it and on a temporary basis, without prejudice to pay and category (art.º 120.º do Código do Trabalho).

As a rule, the employer cannot lower your category. A downgrade is only allowed in exceptional cases and always with the worker's agreement, and it further requires authorisation from the ACT when it entails a reduction in pay (art.º 119.º do Código do Trabalho). A demotion imposed outside those cases is unlawful.

A transfer is possible in certain cases, permanent or temporary, under art.º 194.º do Código do Trabalho. The worker is entitled to have the employer bear the additional expenses. In a permanent transfer, where there is serious harm, they may also terminate the contract with the right to compensation (art.º 194.º, n.º 5).

The schedule can be changed by the employer within the legal limits and with prior consultation. There are specific protections, for example for those with family responsibilities, which constrain changes that affect work-life balance.

It is an arrangement for organising working time that allows the normal period to be increased on certain days, to be offset by a reduction on others or by days off. It must respect the limits and the form of establishment provided for by law.

A working-time adaptability scheme only binds the worker if it results from a collective labour regulation instrument or from an agreement, within the legal terms. Without that basis, the unilateral imposition of variable hours does not bind them, so, as a rule, they can refuse it and keep the schedule they had.

As a rule, not without your agreement. Moving to part-time usually presupposes the worker's consent. There are specific situations, such as balancing family life, in which there is a right to request it.

Remote work requires a written agreement and has its own regime, including the reimbursement of additional expenses and the right to disconnect. The worker keeps the same rights as those who work on the company's premises (art.º 165.º e seguintes do Código do Trabalho).

It is the arrangement for holding management posts or roles of supervision and trust, which either party may end with prior notice. When the arrangement ends, the worker may return to the previous role, as agreed.

It is the temporary provision of a worker to another company, on conditions defined by law (art.º 288.º e seguintes do Código do Trabalho). It requires specific conditions and the worker's agreement, and the employment relationship with the original employer is maintained.

On the transfer of a company or business, the employer's position passes to the acquirer and the contracts continue with the workers' rights intact (art.º 285.º do Código do Trabalho). The transfer, on its own, is not grounds for dismissal.

As a rule, it does not directly force it, but it can make the commute very burdensome. As for the additional expenses, the serious harm and the possibility of terminating the contract with compensation, what is explained in the question 'Can I be transferred to another workplace?' applies.

Health and safety at work

The employer. The duty to ensure health and safety conditions in every aspect of the work rests on the employer, based on the prevention of risks (art.º 281.º do Código do Trabalho). It is an obligation that cannot be transferred to the worker.

Yes. The worker may stop working or leave the site when there is serious and imminent danger to their safety or health, and may not be penalised for it, provided they acted in good faith.

Yes. The employer is required to provide health examinations, at its own expense, carried out by the occupational physician. There is an examination at the start (on hiring), periodic examinations over time and occasional examinations when a reason arises. They serve to confirm that you are fit for the role and that the work is not affecting your health. After each examination, the doctor issues a fitness-for-work certificate, without disclosing clinical data to the employer.

It is, as a rule, one that occurs at the workplace and during working time and causes injury, impairment or illness that affects earning capacity. This area has its own regime and is dealt with on our page devoted to workplace accidents.

It can count. An accident occurring on the normal route to or from home and the workplace is, as a rule, treated as a workplace accident, within the applicable legal conditions.

Report the accident to the employer, seek medical assistance and keep all clinical documents. It is with those materials that the accident is reported to the insurer and that the compensation you may be entitled to is substantiated.

In principle, yes. The compensation regime applies to remote work. The workplace is then the one the worker chose, and working time is any period in which they were demonstrably working for the employer (art.º 170.º-A, n.º 5 do Código do Trabalho). The difficulty lies in proving that the event did not occur during a personal break.

Unlike an accident, which happens at a precise moment, an occupational disease sets in gradually, through prolonged exposure to risk factors of the activity. As a rule it appears on the official list, but a disease outside the list may still be compensated where it is proven to result directly and necessarily from the activity performed. The compensation may be handled through Social Security.

Yes. The employer must provide appropriate training on health and safety, above all on hiring, on a change of duties and when new equipment or technologies are introduced.

The employer. The personal protective equipment needed for the activity must be provided to the worker free of charge and kept in good condition, and its cost may not be charged to them.

They represent the workers before the employer on health and safety matters and are elected for that purpose. They follow the risk assessment, receive relevant information and take part in the consultation on prevention measures.

You may not be penalised for it. Retaliation against someone who exercises rights or reports irregularities on safety matters is prohibited. A dismissal resting on that ground is unlawful because it is based on a prohibited cause. If the report was made to the ACT, see also, in the block on entitlements, working time and harassment, the answer on retaliation after a report, which explains the two-year presumption in the worker's favour provided for in Lei n.º 93/2021.

The labour inspectorate (ACT). It oversees compliance with labour and safety rules, can bring proceedings for administrative offences under labour law, impose the corresponding fines and order the correction of hazardous situations at workplaces.

Maternity, paternity and family balance

As a rule, 120 or 150 consecutive days, at the parents' choice, with the possibility of an increase when it is shared between the two of them (art.º 40.º do Código do Trabalho). The corresponding allowance is paid by Social Security according to the option chosen.

Yes. The father has the right and the duty to take exclusive parental leave, with a mandatory period in the days following the birth, under art.º 43.º do Código do Trabalho. At present it is 28 mandatory days, seven of them immediately after the birth, plus seven optional days taken at the same time as the mother's leave.

During parental leave the contract cannot be terminated freely. The post is kept for you and you have the right to return to your duties, on the conditions you would have had if you had not been absent. A dismissal in this period requires a prior opinion from the equality-at-work commission (CITE). If it rests on a fact attributable to you, it is presumed to be without just cause.

It is the female worker's right to daily time off to breastfeed for as long as breastfeeding lasts. In the case of bottle-feeding, either parent is entitled to the time off until the child turns one, provided both are in work. As a rule it is taken in two periods a day (art.º 47.º do Código do Trabalho), with no loss of pay.

A worker with a child under 12 or with a disability or chronic illness may request flexible working hours or part-time work. The employer may only refuse with a reason and a prior opinion from the CITE.

Yes. The law provides for time off to care for a child, up to 30 days a year for a child under 12 and up to 15 days a year from that age (art.º 49.º do Código do Trabalho). Some of that time off gives the right to an allowance from Social Security.

Yes. A pregnant worker is entitled to time off to attend antenatal appointments, as often and for as long as needed, with no loss of pay. The father is entitled to three periods of time off work to accompany the worker to those appointments (art.º 46.º).

Yes, on safety and health grounds. A worker who is pregnant, who has recently given birth or who is breastfeeding is entitled to be relieved of harmful tasks or conditions and to be temporarily removed from the post when necessary, with no loss of pay.

It is suspended. Periods when the contract is suspended, such as certain types of leave, do not count towards the probationary period, which resumes when the worker returns.

It should not harm those rights. The leave period counts towards length of service and does not, in itself, cause any loss of holiday.

There is specific protection. A worker who is pregnant, who has recently given birth or who is breastfeeding is exempt from night work for 112 days, before and after the birth, at least half of them before the expected date of birth (art.º 60.º). At other stages of the pregnancy or during breastfeeding, the exemption depends on a medical certificate. Wherever possible, there is a right to a compatible daytime schedule.

Yes. The Código do Trabalho extends parental protection to adoption and to prospective adopters, as well as to guardians and to anyone with minors in their care, with adaptations specific to each case.

You have reinforced protection. Your dismissal always requires a prior opinion from the CITE (art.º 63.º do Código do Trabalho). If it rests on a fact attributable to you, it is presumed to be made without just cause. Without that opinion, the dismissal is unlawful.

Dismissal and how to respond

No. Dismissal without just cause is prohibited. It may only occur in the forms provided for by law and by following the corresponding procedure.

Culpable conduct by the worker, so serious that it makes it impossible to maintain the employment relationship (art.º 351.º do Código do Trabalho). It always requires disciplinary proceedings, with a written statement of the disciplinary charges and the right to a defence.

Do not let the deadline pass. The worker, either personally or through someone appointed to defend them, may consult the file and reply to the statement of charges within 10 working days, setting out their version of the facts and requesting whatever evidence they see fit (art.º 355.º do Código do Trabalho). The reply shapes what follows, so it is worth preparing it with legal support.

It is, in substance, what an English-speaking reader would know as individual redundancy. It happens when the post is no longer needed for market, structural or technological reasons, with no compatible alternative post. The abolition has to be genuine. It gives the right to compensation and access to unemployment benefit, since it is involuntary unemployment.

Broadly the equivalent of a collective redundancy, it is the termination of several contracts at the same time, for the same reasons as the abolition of a post. It has its own procedure, with an information and negotiation stage. The compensation follows the same rules as the abolition of the post.

In cases where just cause is lacking or the reason relied on is not proven. Also when the procedure was carried out improperly or when the dismissal rests on a prohibited ground, such as discrimination, pregnancy or retaliation.

To back pay for the period up to the decision and to reinstatement in the post with your length of service, or to compensation in lieu of reinstatement (art.º 389.º e seguintes do Código do Trabalho). Unemployment benefit or other support you received in that period is deducted from that pay, as the two cannot be combined (art.º 390.º).

As a rule the choice is yours. In certain cases, such as micro-enterprises or management posts, the employer may ask the court to set aside reinstatement, by showing serious harm.

As a rule, 60 days from receipt of the dismissal notice (art.º 387.º do Código do Trabalho). In collective dismissal the deadline is six months (n.º 2 do art.º 388.º). These are strict time limits. Once they pass, the right to challenge the dismissal is lost.

A request is filed on a dedicated form at the labour court. From there the case proceeds to the review of the dismissal. Respond without delay, because the 60-day time limit for challenging the dismissal is strict and cannot be extended. The form, though it looks simple, shapes the rest of the case, so there is an advantage in preparing it with a lawyer from day one.

Assess it before signing, because the agreement usually includes a waiver that closes off future claims. If the signatures are not authenticated in person, as a rule you can withdraw from the agreement by written notice up to the seventh day after it is signed (art.º 350.º do Código do Trabalho). Also consider the effect on unemployment benefit. Faced with a proposal like this, it is worth having a lawyer look at the wording and the figures before replying to the company, to weigh the amount offered against what you would be giving up.

Keep the written statement of disciplinary charges and the dismissal decision. You have 60 days, from receipt of the decision, to challenge the dismissal in court (art.º 387.º do Código do Trabalho). If the court finds there was no just cause or that the procedure was invalid, the dismissal is unlawful. In addition, within the 5 working days following receipt of the decision you may ask the court for the interim suspension of the dismissal (art.º 386.º do Código do Trabalho, art.º 34.º e seguintes do Código de Processo do Trabalho), a measure that also covers disciplinary dismissal. Once the suspension is granted, as a rule you continue to receive pay while the action runs. As this 5-working-day deadline is short, it is advisable to speak to a lawyer as soon as you receive the decision.

It depends on the type of dismissal. If it is unlawful and you opt for compensation, the court sets between 15 and 45 days of basic pay and seniority-based pay increments for each full year or fraction of length of service, with a minimum of three months of that pay (art.º 391.º do Código do Trabalho). In the abolition of a post or in collective dismissal, what you receive is the compensation for termination of the contract, calculated under art.º 366.º do Código do Trabalho and explained in the answer about that compensation, in the essential definitions.

You can be, but not for being ill. Sick leave suspends the contract (art.º 296.º do Código do Trabalho). Illness, on its own, is not just cause for dismissal (STJ ruling on dismissal and illness). That does not give you complete immunity. The employer may end the contract on a separate and proven ground, such as a disciplinary reason or the abolition of the post, following the corresponding procedure (art.º 295.º). A dismissal driven by the illness, however, tends to be unlawful.

If you resign, no. Termination by the worker counts as voluntary unemployment and does not entitle you to the benefit. A termination by mutual agreement only gives the right to benefit in certain cases, when it invokes a ground that would allow collective dismissal or abolition of a post, and within a quota that the law sets per company every three years (art.º 10.º, n.º 4 do Decreto-Lei n.º 220/2006). Before signing, look carefully at the proposed termination by mutual agreement, and in particular at the ground it states.

Yes. When you resign, you must give written notice, 30 days in advance if you have up to two years of length of service or 60 days if you have more than two years (art.º 400.º do Código do Trabalho). If you do not, you owe the employer the basic pay and seniority-based pay increments for the notice period not given (art.º 401.º).

Keep everything in writing and do not sign anything under pressure. Ask for a copy of the letter and the dismissal decision, gather the contract, the payslips and the communications with the company, and note the dates. Do not return any property straight away. Respond within the deadlines, which are short. You have 60 days to challenge the dismissal in court (art.º 387.º do Código do Trabalho) and only 5 working days to apply for the interim suspension, which tends to keep the salary going while the action runs (art.º 386.º).

They are three different ways of ending the contract. Dismissal comes from the employer and must have a ground and a procedure. Resignation (denúncia) comes from the worker, who leaves on their own initiative, with prior notice and normally with no right to compensation. Termination with just cause, close to what many readers will know as constructive dismissal, also comes from the worker, but because the employer committed a serious breach, such as unpaid wages or harassment. Where that breach is proven, it may give the right to compensation (art.º 394.º e 396.º do Código do Trabalho). The deadline to do so is short and is explained in the question about the deadline to terminate the contract with just cause, in the block on entitlements, working time and harassment.

Entitlements, working time and harassment

Sums the employer owes you by reason of the contract: wages, holiday and the holiday allowance, the Christmas allowance, overtime, commissions. They fall due mainly at the end of the contract.

One year from the day after the end of the contract (art.º 337.º do Código do Trabalho). Once that period passes, the claim becomes time-barred and the debtor can refuse to pay on that ground. Do not let it drag on.

Yes. Where the employer is declared insolvent or is in a special corporate recovery procedure (PER), the Fundo de Garantia Salarial (IGFSS) pays the overdue entitlements, up to six months of pay and with a ceiling of three times the minimum wage per month (art.º 3.º do regime anexo ao Decreto-Lei n.º 59/2015). The claim must be made within one year of the termination of the contract.

Within certain limits and situations, yes. But supplementary work, as a rule, gives the right to a pay supplement (art.º 268.º do Código do Trabalho) and sometimes to compensatory rest.

As a rule, 22 working days a year, with no loss of pay, plus the holiday allowance. Special rules apply to how holiday accrues in the year you are hired.

Pay cannot, in principle, be reduced. It may only be lowered in the situations the law expressly allows. A reduction imposed outside those cases is unlawful.

Unwanted conduct, as a rule repeated, that disturbs the person, affects their dignity or creates a hostile or humiliating environment (art.º 29.º do Código do Trabalho). It is the pattern that counts, not just an isolated episode (STJ ruling on workplace harassment).

Evidence is the critical point. Gather messages, e-mails, written instructions, records of duties taken away and the names of anyone who can testify. The earlier you start, the better.

You can, where there are facts and sufficient evidence. Harassment is prohibited by law (art.º 29.º do Código do Trabalho) and may give the right to compensation, constitute a very serious administrative offence under labour law and be grounds for terminating the contract with just cause. Before proceeding, the most important thing is to gather the evidence: messages, e-mails, witnesses and medical reports where there is an impact on health. Then you weigh up the safest route, from an internal complaint and a report to the ACT through to court action.

Yes. It is prohibited to retaliate against someone who reports an infringement, a protection that has no time limit and that also covers anyone who assists them in the process (art.º 21.º da Lei n.º 93/2021, com o art.º 6.º, n.º 4). What the law sets at two years is a presumption in your favour. Any harmful act carried out in the two years following the report is presumed to be retaliatory, and it falls to the employer to prove it had another justification. After that period retaliation remains prohibited, but the automatic presumption no longer applies, so it then falls to the worker to show the link to the report.

The notice, in writing and setting out the facts, must be given within 30 days from becoming aware of the facts (art.º 395.º do Código do Trabalho). Special rules apply where wages are unpaid.

In the labour courts, with their own rules and often an initial hearing of the parties at which the judge seeks conciliation. Before that, many cases are settled by agreement.

As a rule, no. Labour proceedings were designed to be faster than ordinary ones, but a party cannot dictate the pace to the court and there is no application to expedite as there is in criminal proceedings. What is within your control is keeping the case well prepared (contract, payslips, communications) and responding quickly to whatever the court asks, so as not to add further delay. The same goes for the lawyer. Justice takes its own time and cannot be hurried.

You can, but it rarely helps and can prove costly. As that mechanism is not provided for in procedural law, an application merely demanding speed risks being held manifestly unfounded and giving rise to an exceptional penalty charge, a monetary penalty for those who use groundless procedural means (art.º 531.º do Código de Processo Civil, applicable to labour proceedings). As a rule, it is not worth it.

Yes. The right to a decision within a reasonable time is in the Constitution (art.º 20.º, n.º 4) and in the European Convention on Human Rights. An abnormal delay attributable to the justice system may give the right to compensation from the State (Lei n.º 67/2007). It does not speed up the case, but it compensates for the harm caused by the delay. It becomes time-barred after three years.

Preferably before signing anything or letting a deadline run. Having a lawyer alongside you helps you respond within the deadlines (such as the 60 days to challenge a dismissal) and gather the evidence that supports the claim.

The fees vary with the complexity of the case and the stage it is at. At NAA, the first consultation is 90 euros (VAT included), with no commitment to proceed. Anyone without the means to bear the costs may apply to Social Security for legal aid. On that route, however, they are assigned the lawyer that the Portuguese Bar Association appoints. How fees are set is developed in the article on how much a lawyer costs in Portugal.

Bring everything that helps make sense of the situation and work out the deadlines. As a rule, the employment contract, the payslips, the dismissal letter or the written statement of disciplinary charges, the messages and e-mails exchanged with the company, the schedule sheets and any agreement that has been proposed to you. The more complete the picture, the more concrete the advice can be.

There is no such title as the "best lawyer". What the Portuguese Bar Association recognises is a specialisation in Employment Law, with demanding requirements for registration and proven practice. In day-to-day terms, in a dismissal what counts is experience in challenges and a firm command of the deadlines, which are short and unforgiving. When choosing, weigh above all the concrete experience in cases similar to yours and the availability to act within those deadlines.

A

Termination by mutual agreement (Acordo de revogação)
A written agreement by which employee and employer end the contract by mutual consent (art.º 349.º). As a rule, the employee may change their mind up to the seventh day after signing (art.º 350.º).
Length of service (Antiguidade)
The employee's time of service with the company, relevant to the statutory compensation and to the compensation for dismissal.
Harassment (Assédio)
Unwanted conduct that affects a person's dignity or creates a hostile environment, prohibited by law (art.º 29.º).
Notice period (Aviso prévio)
The period of notice one party must give the other before ending the contract.

C

Expiry (Caducidade)
The extinction of a right or a contract through the passing of its time limit. This is the case with the 60-day deadline to challenge a dismissal and with the fixed-term contract, which expires when its term ends or the situation that justified it ceases.
CITE
The equality-at-work commission, in full the Commission for Equality in Labour and Employment. It issues a prior opinion on the dismissal of a pregnant, postpartum or breastfeeding worker and of a worker on parental leave (art.º 63.º).
Severance compensation (Compensação)
An amount owed to the employee in certain forms of termination of the contract, such as individual redundancy, collective dismissal or the lapse of a fixed-term contract at the employer's initiative.
Fixed-term contract (Contrato a termo)
A contract with a set term, valid only for temporary needs of the company that are duly justified.
Permanent contract (Contrato sem termo)
A contract of indefinite duration, the general rule, with no set end date.
Unpaid wages and other money owed by the employer (créditos laborais)
Amounts owed to the employee under the contract, its breach or its termination. As a rule, they become time-barred one year after the contract ends (art.º 337.º).

D

Resignation (Denúncia)
Termination of the contract at the employee's initiative without invoking just cause. It requires prior notice and gives no compensation.
Collective redundancy (Despedimento coletivo)
The simultaneous termination of several contracts for reasons relating to the company, with its own procedure.
Unlawful dismissal (Despedimento ilícito)
A dismissal without just cause, without a proven ground, with an invalid procedure or on a prohibited ground.
Long-service increment (Diuturnidade)
A pay increment linked to length of service, relevant in calculating compensation.

E

Individual redundancy (Extinção do posto de trabalho)
Dismissal because the position is no longer needed, for market, structural or technological reasons.

F

False self-employment (falsos recibos verdes)
A contract for services that conceals a genuine employment contract, with orders, set hours and integration into the company. The law provides for court proceedings to recognise the existence of the contract (Lei n.º 63/2013).
Holiday (Férias)
An annual period of paid rest, as a rule of 22 working days, with a right to a holiday allowance, an extra paid amount for the holiday period.

H

Overtime (Horas extraordinárias)
Work performed in addition to normal working hours, with a right to an enhanced rate of pay.

I

Challenging the dismissal (Impugnação do despedimento)
Court proceedings to dispute the lawfulness of the dismissal. The deadline is, as a rule, 60 days (art.º 387.º), extended to six months for a collective dismissal (art.º 388.º).
Compensation in lieu of reinstatement (Indemnização por antiguidade)
An amount the employee may receive instead of reinstatement, as a rule between 15 and 45 days of basic pay and seniority allowances for each year of service, with a minimum of three months (art.º 391.º).

J

Just cause (Justa causa)
A ground allowing immediate termination of the contract, by the employer (a culpable act by the employee) or by the employee (a serious breach by the employer).

N

Written statement of disciplinary allegations (Nota de culpa)
A written document that sets out the facts alleged against the employee and opens the disciplinary proceedings.

P

Probationary period (Período experimental)
The initial phase of the contract in which either party may end it, as a rule without a reason or compensation (art.º 114.º).
Normal working hours (Período normal de trabalho)
The hours the employee is contracted to work, which as a rule cannot exceed eight hours a day and forty a week (art.º 203.º).
Limitation period (Prescrição)
The loss of the ability to enforce a right through the passing of time. Employment claims become time-barred, as a rule, one year after the termination of the contract (art.º 337.º).
Disciplinary procedure (Processo disciplinar)
The procedure the employer must follow before a dismissal for an act attributable to the employee.

R

Reinstatement (Reintegração)
The employee's return to the same position, with their length of service, after an unlawful dismissal.
Resignation with just cause (resolução com justa causa)
Termination of the contract by the employee due to a serious breach by the employer, with a right to compensation (art.º 394.º).
Pay (Retribuição)
What the employee receives in return for work, including basic pay and other regular and periodic payments. As a rule it cannot be reduced, save for the exceptions the law allows.
Back pay (Retribuições intercalares)
The wages the employee lost between the unlawful dismissal and the court's decision.

S

Working under the employer's control (subordinação jurídica)
Being subject to the authority and direction of the employer, the feature that defines the employment contract.
Christmas allowance (Subsídio de Natal)
An annual payment, as a rule equal to one month's pay, payable by 15 December (art.º 263.º). In the years of hiring and of termination the amount is proportional.

T

Fixed-term contract with no set end date (Termo incerto)
A contract that lasts as long as the situation that justified it continues, with no set date.
Labour court (tribunal do trabalho)
The court with jurisdiction over labour disputes, with its own procedural rules.

This information is general in nature and is no substitute for individual legal advice.

Knowledge

Related articles

See all articles

How much does a lawyer cost in Portugal? Fees

How much does a lawyer cost? There is no official scale. The criteria in the law, the ban on quota litis, legal aid and what to ask at the first consultation.

Have you been dismissed or have unpaid wages?

Deadlines are running.

Based in Lisbon, we see clients across the country, by appointment. See where to find us.