Labour System
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 employees.
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