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 employees.



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