Investor's Guide - Labour System - Employment Contract

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Labour System

 

1.1. Employment Contract – Concept and Preparation

 

1.1. Employment Contract – Concept and Preparation According to the law, an employment contract is one whereby a person agrees, upon payment, to provide his services to one or more other persons, within the latter’s organization and subject to its authority.

 

Portuguese law requires that fixed-term, unfixed-term, intermittent, part-time and telecommuting contracts, as well as temporary-work contracts (fixed or unfixed-term) must be agreed in writing. There is no such requirement for an employment contract of indefinite duration or one with a very short duration.

 

It is important to stress out that under the Labour Code, the following types of companies are recognized: 

a)   Microbusiness that employs fewer than 10 employees;

b)   Small business that employs from 10 to 49 employees;

c)   Medium-sized business that employs from 50 to 249 employees;

d)   Large business that employs 250 or more workers.

 

         

 

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