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Written Agreements

The Labor Code of Portugal recognizes the validity of written, oral, and implied (by specific facts in the absence of an agreement) contracts. If a written contract is used, the labor code states that an employment contract must be made in multiple copies for the employee and the employer. A written labor agreement must contain several terms prescribed by statute in the Labor Code, including the amount of remuneration, the place of work, and the expected duration of the contract.

Portuguese Labor Law permits the use of non-compete agreements that take effect after an employment contract ends, under these conditions:

• The agreement must be in writing, although it doesn't have to be part of the initial employment contract.
• There must be a specific risk that the employee's future work could harm the employer's interests.
• The employee must receive compensation for the period of restriction.
• The restriction period can't exceed 2 years after the contract ends. However, for employees with high trust roles or access to sensitive competitive information, this period can be extended up to 3 years.

Oral Agreements

The Civil Code of Portugal recognizes the validity of oral or verbal contracts. However, the Labor Code mandates that important information regarding the contract be presented in writing to the employee.

Implied Agreements

The Civil Code of Portugal recognizes the validity of contracts implied by specific facts in the absence of an agreement. However, the Labor Code mandates that important information about the contract be presented in writing to the employee.

The Labor Code of Portugal stipulates that the regular working hours may not go over eight hours per day and 40 per week. The maximum average hours of work per week (including overtime) cannot exceed 48 hours, measured over a reference period of four months.

Bill 790/XIV/2 guarantees right to professional disconnection. Bill 745/XIV/2 contains changes the legal and labor regime for teleworking, ensuring greater protection for workers.

New Year’s Day (January 1), Freedom Day (April 25), Labor Day (May 1), Portugal Day (June 10), Assumption of Mary (August 15), Republic Day (October 5), All Saints’ Day (November 1), Restoration of Independence (December 1), Immaculate Conception Day (December 8), Christmas Day (December 25), Good Friday (date may vary), Easter Sunday (date may vary), Corpus Christi (date may vary).

In Portugal, the Labor Code sets maximum lengths for trial periods. A trial period may be excluded from the employment contract by the written agreement of both parties. The maximum trial period for the majority of employees is set at 90 days. It varies based on the criteria listed below:

• For employees holding positions of technical complexity or a high degree of responsibility, positions requiring special qualifications, or carrying out functions of trust, the probationary period is 180 days.
• The maximum trial period for a manager or senior manager is 240 days.
• For fixed-term employment contracts of six months or more, the maximum probation period is 30 days.
• For fixed-term contracts of less than 6 months length, the maximum trial period is 15 days.

Employees are entitled to standard employee protections and rights during their trial period. If the trial period lasts more than 60 days, the termination of the contract by the employer requires 7 days' notice. If the trial period lasts more than 120 days, the notice must be at least 15 days.

Notice Period

Portugal's Labor Code requires the employer to give advance notice to employees who are being dismissed. The duration of the advanced notice period varies based on the seniority of the employee:

• 15 days for the service of under 1 year
• 30 days if the worker has been employed between 1 and 5 years
• 60 days if the worker has been employed between 5 and 10 years
• 75 days for service over 10 years

Employees on probation are also entitled to notice period for termination of their contract. If the trial period lasts more than 60 days, the termination of the contract by the employer requires 7 days' notice. If the trial period lasts more than 120 days, the notice must be at least 15 days.

Severance Benefits

Per the Labor Code of Portugal, severance pay for dismissed employees is 24 days of compensation per year of service.

In collective dismissals, severance pay is calculated as 14 days of base pay and seniority payments for each full year of seniority, limited to 240 times the guaranteed minimum monthly salary. The value of the worker's monthly base salary and seniority to be considered for calculating the compensation cannot exceed 20 times the guaranteed minimum monthly salary.

Minimum Wage

Minimum monthly wage rates effective January 1, 2025, are as follows:

• National - EUR 870 (Euros)
• Autonomous Region of Azores - EUR 913.50
• Autonomous Region of Madeira - EUR 915

Non-payment of minimum wages is considered a serious offense and is punishable by a fine. Ensuring compliance with the Labor Code provisions, including those on the minimum wage, is the responsibility of the Labor Inspectorate.

Wages must be paid to employees at regular intervals - weekly, fortnightly, or monthly. In the case of variable remuneration with a calculation period of more than 15 days, the employee may demand payment in fortnightly installments.

Overtime, Holiday & Vacation Pay

In Portugal, regular working hours are set at 8 hours per day and 40 hours per week. Any additional work performed beyond those hours is considered overtime. An employee can complete no more than 2 hours of overtime in any single working day. Overtime cannot exceed 175 hours per year for small companies and 150 hours per year for medium or large companies. However, these annual limits can be varied by collective agreement. Overtime cannot exceed 80 hours per year for part-time workers. Minors may only engage in overtime work in extraordinary circumstances.

Overtime pay on a regular working day is calculated as 125% of the employee's standard wage for the first hour or fraction thereof and 137.5% of the employee's wage for every consecutive hour or subsequent fraction thereafter. On weekly rest days and holidays, overtime pay is calculated as 150% of normal wages. A collective labor agreement can vary overtime rates.

Portugal's labor law provides employees the right to paid annual leave of 22 working days. Employees can take leave after 6 months of working with the same employer and accrue 2 vacation days per month of work in the first year, up to 20 days. The law prohibits compensation in lieu of vacation.

Visas

In Portugal, the following visa categories are available:

• Temporary stay visa - this multiple entry visa is valid for up to 4 months and is issued for medical treatment, collaboration with the WTO, self-employment for less than 6 months, conducting scientific research or teaching for less than 1 year, undertaking amateur sports when accommodations are provided, and certain other exceptional cases such as educational exchanges or internships
• Short-stay visa - issued for tourism or visiting family members; valid from 90 days up to one year
• Residence visa - valid for 3 to 4 months and is issued as an interim measure to persons intending to apply for a residence permit.

Work Permits

Portugal's immigration law requires that non-EU citizens may obtain employment only in a position that cannot be filled by Portuguese or EU nationals. Eligible foreign workers are allowed to apply for a residence permit from the Portuguese Immigration and Borders Service. The residence permit is granted for two years and is renewable.

The Institute of Employment and Vocational Training and each autonomous region's respective departments maintain an online information system accessible to the public that lists job offers available to foreign (non-EU) workers. The job listings are disseminated on the initiative or at the request of employers.