Labour System - Labour System

In recent years, Portuguese employment law has undergone several changes and adjustments. Thus, after more than 30 years of legislative reforms, the Portuguese labour system is now more flexible, particularly in terms of working time organization.

 

In what concerns regulation, the main law is the Portuguese Labour Code, which was revised in 2009 (Law nº. 7/2009, of February 12th), 2011 (Law 53/2011, of October 13th), 2012 (Law 23/2012, of June 25th), 2013 (Law 69/2013, of August 30th), 2014 (Law 27/2014, of May 8th, and Law 55/2014, August 25th), 2015 (Law 28/2015, of April 14th, and Law 120/2015, of September 1st), 2016 (Law 8/2016, of April 1st), 2019 (Law 93/2019, of September 4th), 2021 (Law 18/2021, of April 8th and Law 83/2021, of December 6th), 2022 (Law 1/2022, of January 3rd), 2023 (Law 13/2023, of April 3rd) and 2025 (Law 32/2025, of March 27th).

 

Law 13/2023, of April 3rd, which entered into force on May 1st, 2023, introduced changes to employment law promoted by the "Decent Work Agenda", with the aim of combating precariousness, young people in the labour market, promoting the improvement of the balance between personal, family and professional life, boosting collective bargaining and the participation of employees in collective relations and strengthening inspection mechanisms for more effective detection of irregular situations.

 

From the outset, the minimum prior notice period to notify Social Security of the admission of employees was extended from 24 hours prior to the contract’s production of effects, to 15 days prior to that date.

 

Regarding work in digital platforms, a presumption of the existence of an employment contract for this type of work was created whenever certain characteristics are identified in the relationship, namely the digital platform: (i) setting the remuneration for the work carried out; (ii) exercising the power of direction and laying down specific rules of conduct, presentation or provision of the activity; (iii) controlling or supervising the provision of the activity or verifying its quality; (iv) restricting the activity provider’s autonomy regarding work organization; (v) exercising labour powers over the activity provider; or (vi) holding the work instruments or exploiting them through a lease agreement.

 

On the other hand, the scope of the information that must be provided to employees at the beginning of the employment relationship has been extended, among which the following new information stands out: (i) if the contract is an unfixed-term employment contract, the foreseeable duration of the contract; (ii) the notice periods and the formal requirements for the termination of the contract or the criteria for its determination; (iii) the amount, periodicity and payment method of the remuneration, with a breakdown of its components; (iv) the normal daily and weekly working period, specifying the cases where it is defined on an average basis (if applicable); and the applicable regime in case of overtime work and shifts, (v) the applicable collective labour regulation instrument, if any, and the designation of the respective contracting entities; (vi) in the case of temporary work, the identification of the user undertaking; (vii) the duration and conditions of the trial period; (viii) the individual right to professional continuous training; (ix) the applicable social protection schemes and other complementary or substitute benefits to those provided that may be due; and (x) when there are algorithms or artificial intelligence systems that impact decision-making on working conditions and maintenance of working conditions, the parameters and criteria that govern them.

 

The Decent Work Agenda has also limited the use of exclusivity agreements, prohibiting the employer from preventing employees from carrying out another professional activity or treating them unfavorably because of this activity, unless this obligation of exclusivity results from objective grounds, namely reasons of work health and safety or professional secrecy.

 

With regard to term contracts, the ban on the succession of term contracts has been extended, preventing term contracts from being signed for the same professional activity as a previous term employee whose contract has ended for reasons not attributable to the latter and a period of time equivalent to 1/3 of the duration of the previous contract, including renewals, has not elapsed.

 

The conclusion of very short-term contracts must now be notified to the Labour Authorities, and the absence of this notification has the consequence that the term contract is considered to have a duration of 6 months.

 

Concerning temporary work, the prohibition of succession of contracts for the use of temporary work is extended to cover not only the same position, but also the same professional activity, and the subjective scope of the prohibition was also extended, since it is no longer limited to a specific company, but also covers companies with which the employer is in a control or group relationship or maintains organizational structures with.

 

Also, within the scope of temporary work, the maximum number of temporary employment contract renewals was reduced from 6 to 4 renewals, and a maximum duration of 4 years was also implemented for successive temporary employment contracts in different user undertakings, concluded with the same employer or with a company with whom the employer is in a control or group relationship with or maintains common organizational structures.

 

In terms of extracurricular internships, an obligation was established for the promoting entity to pay the intern a monthly internship allowance, in an amount no lower than the minimum wage with a reduction of 20%. Simultaneously, the obligation to contract work accident insurance for the intern was also established, as well as the equivalence, for Social Security purposes, of internship to employment.

 

Regarding the hiring of student-employees, it is no longer required to do so in written form when hired on a term basis, however, their respective admissibility requirements must still be complied with. These contracts must now be notified to Social Security, in a specific form for this purpose.

 

The trial period regime has also undergone changes, and it is now provided that whenever its duration is not communicated to the employee, it is presumed that it does not exist. On the other hand, a reduction/exclusion of the trial period for employees looking for their first job and for the long-term unemployed, depending on the duration of a previous term employment contract with a different employer, as well as the reduction/exclusion of the trial period, according to the duration of a positively evaluated previous professional internship for the same activity with a different employer has been foreseen. The deadline for terminating the employment contract during the trial period when it has lasted for more than 120 days has been increased to 30 days. Finally, it is now possible for the unilateral termination of the contract during the trial period to be declared abusive by the Courts.

 

In addition, in matters of equality and non-discrimination there are new developments, with equal treatment in access to employment and work now covering decision-making based on algorithms or other artificial intelligence systems. Equal treatment in employment now also prohibits unjustified pay discrimination when awarding attendance and productivity bonuses, as well as unfavorable treatment in terms of evaluation and career progression.

Additionally, with the aim of promoting equality between men and women in the employment market, the new Law introduced mechanisms that enable a better distribution of family responsibilities, namely:

 

a) The possibility of cumulating leave days with part-time work;

b) The father's exclusive parental leave is now 28 consecutive/interpolated days;

c) The obligation for the mother to take at least 42 days of parental leave after childbirth;

d) The increase in Social Security benefits when parental leave is shared equally between the two parents;

e) The creation of leave due to gestational bereavement;

f) The extension of the right work remotely, and of the exclusion of adaptability and bank of hours regimes for parents with children with disabilities, chronic illness or oncological diseases;

g) The extension of time off and leaves in the context of adoption and fostering as well as hospitalization; and

h) Exemption from the adaptability and bank of hours regimes for employees (i) with children under the age of 3, or, regardless of their age, with a disability or chronic illness or (ii) with children between the ages of 3 and 6, who present a statement declaring that the other parent carries out a professional activity and is unable to provide assistance, unless these employees express their agreement in writing.

 

Changes were also introduced in overtime work payment, defining that from the 100th hour onwards overtime is paid, on a normal working day, with an increase of 50% in the first hour and 75% in subsequent hours and, on a weekly rest day or holiday, of 100%.

 

In terms of compensation for termination of the employment contract, the amount of compensation due for the expiration of term contracts by the employer was increased to 24 days of base remuneration for each full year of seniority, and the compensation amount for collective dismissal was also increased to 14 days of base remuneration for each full year of seniority.

Prohibitions on the outsourcing of services were established, making it forbidden to resort to the acquisition of external services from a third party to satisfy needs that were provided by an employee whose contract was terminated in the previous 12 months due to a collective dismissal procedure or job position extinction.

In terms of collective relations, it is no longer possible for employees who are already covered by a collective convention extension act to choose a collective agreement, and it is now provided that the issuance of a collective convention extension act removes, for a given period of time, the choice regime that may be in force.

On the other hand, it was determined that in case of acquisition of external services for the performance of activities corresponding to the company’s corporate purpose, the collective bargaining agreement in force at the company will bind the service provider, when it is more favorable. Likewise, collective bargaining agreements are now applicable to work providers without legal subordination who are in a situation of economic dependence in relation to the activity’s beneficiary.

Regarding the amendments introduced in 2025, they relate to the promotion of the rights of people with endometriosis or adenomyosis through the strengthening of their access to healthcare and the creation of a regime of justified absences from work. As a matter of fact, article 252-B was added to the Labour Code, which provides that a female employee who suffers from severe and debilitating pain caused by endometriosis or adenomyosis during her menstrual period is entitled to justified absences from work, without loss of any rights, including remuneration, for up to three consecutive days per each month of work. The medical prescription that attests endometriosis or adenomyosis with incapacitating pain is delivered to the employer and constitutes proof of the justifying reason for the absence, without the need for monthly renewal.

In 2025, relevant amendments were also introduced to the Social Security Contributory Schemes Code (Decree-Law 127/2025, of 9 December):

a) The admission of employees must be communicated to Social Security through “Segurança Social Direta”, up until the start of the employment contract;

b) If this obligation is not fulfilled, it shall be presumed that the employee commenced duties on the first day of the third month prior to the verification of the non-compliance;

c) Upon the admission of employees, the employees’ Social Security identification number, the type of employment contract and their permanent remuneration must also be declared;

d) The termination and suspension of the employment contract must be communicated to Social Security with the indication of the respective reason;
e) Changes to the type of employment contract must also be communicated to Social Security;

f) Changes to the value of employees' permanent remuneration must now be communicated to Social Security;

g) As for the payment of contributions and quotas, it shall no longer be made between the 10th and 20th day and shall instead be made between the 1st and the 25th day of the following month.



In the following chapter, we will describe the aspects of Portuguese labour law that we consider most relevant, notwithstanding the fact that this summary does not replace the direct consultation of the legislation in force. The rules mentioned below may be changed, in certain cases, by a collective bargaining instrument applicable to the employment relationship.

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, remote work and service commission employment contracts, as well as temporary-work contracts (term or open-ended), must be agreed upon in the written form. There is no such requirement for open-ended or very short-term employment contracts.

It is important to note that, within the scope of the Portuguese Labour Code, companies are classified as follows:

(a) Micro-company, which employs less than 10 employees;

(b) Small company, which employs from 10 to less than 50 employees;

(c) Medium-sized company, which employs from 50 to less than 250 employees;

(d) Large company, which employs 250 or more employees.

The trial period corresponds to employment contract’s initial period, during which the parties assess their interest in its maintenance. During the trial period, the parties shall act in a manner that allows for the assessment of their interest in maintaining the employment contract.

The trial period may be excluded via written agreement between the parties. If the employer does not communicate the duration and conditions of the trial period, it is presumed that the parties have agreed to exclude the trial period.

In open-ended employment contract, the trial period has the following duration:

(a) 90 days for the majority of employees;

(b) 180 days for employees who:
I. hold positions of technical complexity, a high degree of responsibility or which presuppose a special qualification;
II. hold positions of trust;
III. are seeking their first job (employees who have previously executed a term contract with a minimum duration of 90 days are not considered for this purpose) and are long-term unemployed.

(c) 240 days for employees who occupy executive positions or senior management positions.

In term employment contracts, the trial period has the following duration:

(a) 30 days in contracts lasting for 6 months or more;

(b) 15 days in the case of fixed-term contracts with a duration of less than 6 months, or of unfixed-term contracts whose foreseeable duration does not exceed such limit.

In service commission contracts, the existence of a trial period depends on an express stipulation in the contract/agreement and cannot exceed 180 days.

The trial period is reduced or excluded, depending on the duration of a previous term employment contract for the same activity, or of temporary work performed in the same job position, or of a provision of services contract for the same object, or even of a professional internship, for the same activity, provided that in either case they are entered into by the same employer. The trial period may also be reduced or excluded if the employee has been subject, in the last 12 months, to a positively evaluated internship contract, for the same activity and with a different employer, provided that its duration was equal to or greater than 90 days.

When hiring an employee looking for their first job or in a situation of long-term unemployment, the trial period is reduced or excluded depending on whether their previous employment contract, even if entered into with a different employer, was equal to or longer than 90 days.

The duration of the trial period may be reduced by a collective labour regulation instrument, or by a written agreement between the parties.

During the trial period, unless otherwise agreed upon in writing, either party may unilaterally terminate the contract without prior notice, just cause, or right to compensation. In the event that the trial period has lasted more than 60 days, termination of the contract by the employer requires 7 days prior notice, increasing or 30 days prior notice in the event the trial period has lasted more than 120 days.

Unilateral termination must be accompanied by a notification to CITE (Commission for Equality in Labor and Employment) and/or the ACT (Labour Authorities), whenever a pregnant, puerperal or breastfeeding employee, or an employee on parental leave, as well as a caregiver employee, or employees looking for their first job or in a situation of long-term unemployment is concerned.

Employees are entitled, each year, to a minimum of 40 hours of professional training, or, if hired on a term basis, for a period of no less than 3 months, they are entitled to a minimum number of hours proportional to the duration of the contract in that year. The employer may anticipate this annual training up to 2 years or, so long as the training plan so provides, defer for the same period of time, recording the training carried out to fulfil the oldest obligation (the anticipation period corresponds to 5 years in the event of attending a recognition, validation and certification of skills process, or for training which provides dual certification).

The employer must offer, each year, professional training to at least 10% of the company’s employees.

Upon termination of the employment contract, employees are entitled to receive the remuneration corresponding to the minimum annual number of professional training hours that have not been provided to them, or to the credit of hours for professional training that they hold at the termination date.

According to the Portuguese labour law, open-ended employment contracts are considered the general rule regarding the admission of employees. Fixed-term and unfixed-term employment contracts are exceptions to this rule (even though these types of contracts are widely used in Portugal).

Resolutory term employment contracts are generally admitted to satisfy the temporary needs of the company, such as the replacement of other employees, or the exceptional increase in the company’s activity, or to fulfil employment policies and the launch of new companies or activities.

The maximum duration of fixed-term contracts, including renewals, is currently 2 years. These contracts can be renewed up to 3 times, as long as the total duration of the renewals does not exceed the initial period of the contract. The maximum duration of unfixed-term employment contracts is currently 4 years.

Term contracts may be judicially converted into open-ended contracts, when, for example, the justifying reason for the term contract is invalid or is not judicially proven, or when the maximum duration or renewals is exceeded.

A new employee can’t be hired or assigned under a term employment contract or a temporary-work contract to carry out the same job position or professional activity, or under a service provision contract for the same purpose or activity, signed with the same employer or company that is in a controlling or group relationship with, or with whom it maintains common organizational structures, before a period of time equivalent to one third of the duration of the previous contract, including renewals, has elapsed.

There is an additional contribution for excessive turnover applicable to companies that have an annual weight of resolutory term contracts higher than the respective sector indicator in force.

This additional contribution tax is applied progressively, based on the difference between the annual weight of term contracts and the sector average, up to a maximum of 2%, the progression scale being defined in a regulatory decree.

The additional contribution for excessive turnover is not applicable in situations of (i) resolutory term employment contracts entered into in order to replace an employee on parental leave, or to replace an employee with a temporary work incapacity due to illness for a period equal to or greater than 30 day; (ii) very short-term employment contracts; and (iii) resolutory term contracts that must be entered into by legal imposition, or due to the constraints inherent to the type of work or the employee’s situation.

This additional contribution has not yet been regulated, so until then it is not applicable.

Executive-level or equivalent duties may be performed in a contract under this regime, along with management or leadership job positions directly dependent on the Board or the general manager or equivalent, personal secretarial jobs for people in any of these positions, or also – provided that a collective bargaining agreement allows it – jobs whose nature presumes a special relationship of trust regarding the people who hold these positions.

An employee of the company (internal service commission) or another person admitted for such purpose (external service commission) may hold a position or perform functions under the service commission regime.

The contract for holding a position or performing functions under service commission is subject to the written form.

In terms of terminating such a labour relationship, either party may denounce it upon written notice, at least 30 or 60 days in advance, provided that it has lasted, respectively, up to two years or more. This aspect constitutes the main advantages of this special regime.

Upon termination of the service commission, employees are entitled to:

(a) Within the context of an internal service commission regime:

i. To resume the activity performed before the service commission, or the one corresponding to the category to which they were promoted;

ii. To terminate the employment contract within 30 days following the employer’s decision to terminate the service commission, in which case employees shall be entitled to a compensation calculated according to the provisions set for cases of collective dismissal.

(b) Within the context of an external service commission regime: to receive the compensation referred above in a), ii., unless the parties have agreed upon a different regime, in writing.

The Portuguese Labor Code foresees the possibility of temporary reduction of activity or suspension of employment contracts.

These measures may be due to a fact concerning the employee (such as, for example, an illness, an accident or military service), or concerning the employer (such as, for example, a business crisis, force majeure, or the employer’s interest).

The lay-off procedure, via company initiative, aims to implement measures that are essential to ensure the economic viability of the company, or the preservation of job positions – therefore, in the context of a business crisis.

The lay-off procedure may be grounded on market, structural or technological reasons.

Reduction: a quantitative change in the company’s operation that does not result in the contract’s suspension:

- Reduction of one or more normal daily or weekly working periods that may affect different groups of employees, on a rotation basis;

- Reduction in the normal daily or weekly working period’s number of hours.

Suspension: Employees’ temporary inactivity due to the company’s or the production unit’s temporary closing.

The lay-off depends on a formal procedure and negotiation with the employees.

During the period of reduction or suspension, the rights, duties and warranties of the parties that do not imply effective work are maintained. These are some of the parties’ rights and duties during the procedure:

(a) Compensation – During the lay-off period, employees are entitled to receive monthly compensation equivalent to two thirds of their normal gross remuneration or the minimum wage (€ 920.00), whichever is higher, with a maximum limit of 3 times the minimum wage (€ 2,760.00).

The employer is responsible for 30% of the compensation, with Social Security being responsible for the remaining 70%.

(b) Right to engage in another paid activity outside the company – Employees may carry out another paid activity outside the company (a possibility that constitutes an exception to the generic non-compete duty), with a 5-day period to notify the employer of their new activity, for the purposes of reducing the compensation in accordance.

(c) Employees maintain the social benefits, or Social Security benefits to which they are entitled to, and whose corresponding calculation basis is not changed as a result of the reduction or suspension.

(d) Right to vacation, vacation allowance and Christmas allowance – The reduction or suspension does not affect the scheduling and enjoyment of vacation, under the general terms, and employees are entitled to the payment, by the employer, of the vacation allowance due under normal working conditions. Employees are entitled to Christmas allowance in full, which shall be paid by Social Security in an amount corresponding to 50% of the compensation, and by the employer the remainder 50%.

Lay-off – Maximum period of 6 months that may be extended for another 6-month period.

During lay-off, and until 30 or 60 days have elapsed from its end (depending on whether the duration of the lay-off has not exceeded or has been greater than 6 months), the employer cannot terminate the contracts of the employees covered. During lay-offs, other additional obligations are imposed on the parties.

In addition to other legally established forms, the employment contract may be terminated by:

(a) Expiration;

(b) Mutual separation;

(c) Dismissal with just cause attributable to the employee;

(d) Collective dismissal;

(e) Dismissal due to job position extinction;

(f) Dismissal due to unsuitability;

(g) Unilateral contract termination by the employee without just cause;

(h) Unilateral contract termination by the employee with just cause.

Dismissal without just cause or for political or ideological reasons is forbidden.

1.8.1. Expiration and Mutual Separation

(a) Employment Contract Expiration

In general, an employment contract expires due to one of the following causes:

(i) Once its term elapses;

(ii) Due to a subsequent absolute and definitive impossibility of the employee rendering work or of the employer receiving such work;

(iii) With the employee’s retirement, due to old age or disability.

Fixed-term employment contracts expire at the end of the stipulated term, or their renewal, provided that the employer or the employee notifies the other party of the intention to terminate it, in writing, 15 or 8 days prior to the end of the term, respectively.

In the event of expiration of a fixed-term employment contract declared by the employer, the employee is entitled to compensation corresponding to 24 days of base remuneration plus seniority for each full year of seniority.

The compensation is as follows:

- The base monthly remuneration and seniority amount to be considered for the purposes of calculating the compensation shall not exceed 20 times the minimum wage (which, as of January 1st, 2026, equals € 18,400.00);

- The total compensation amount can’t exceed 12 times the monthly basic remuneration and seniority payments of the employee, or, when the previous limit applies, 240 times the guaranteed monthly remuneration (which, as of January 1, 2026, totals € 220,800.00);

- The base remuneration and seniority daily amount are the result of the division by 30 of the monthly base remuneration and seniority payments.

In the case of a fraction of a year, the amount of the compensation shall be calculated proportionally.

Unfixed-term employment contracts expire when, foreseeing the occurrence of the term, the employer notifies the employee of the contract’s termination, with a minimum prior notice period of 7, 30 or 60 days depending on whether the contract has lasted for up to 6 months, between 6 months and 2 years, or for a longer period.

In case of expiration of an unfixed-term employment contract, the employee is entitled to compensation corresponding to 24 days of base remuneration and seniority for each full year of seniority.

Regarding the method of calculating the compensation amount, the provisions set out in previous paragraphs concerning expiration of the fixed-term employment contract apply.

Portuguese labour legislation provides a type of conversion into a term employment contract after retirement or after the employee reached the age of 70. Thus, the employment contract of an employee who remains in service after 30 days after both parties become aware of his/her retirement, becomes a term contract.

(b) Mutual Separation

The employer and the employee can determine the termination of the employment contract by agreement. The mutual separation agreement shall be in writing. If the signatures of this agreement are notarized, the employee will not be able to terminate the agreement and will not, in principle, be able to file legal action against the employer to claim other amounts not established in that agreement.


1.8.2. Dismissal at the Employer's Initiative

(c) Dismissal due to a Fact Attributable to the Employee 

An employee’s willful and guilty conduct is just cause for dismissal when, due to its seriousness and consequences, it becomes immediately impossible to continue the employment relationship.

In particular, the following behaviors of the employee constitute just cause for dismissal:

- Unlawful disobedience of orders given by superiors;

- Violation of the company’s employee rights and entitlements;

- Repeated provocation of conflicts with company employees;

- Repeated failure to fulfil obligations related to one’s position or job, with appropriate effort;

- Serious damage to the company’s assets;

- False statements regarding the justification of absences;

- Unjustified absences that directly lead to harm or serious risk to the company, or whose number reaches in each calendar year 5 consecutive or 10 interspersed absences, regardless of damage or risk;

- Wilful failure to follow safety and health rules at work;

- Engaging in physical violence, injuries or other offenses punishable by law, while at work, against employees of the company, members of governing bodies or an individual employer not belonging to these, their delegates or representatives;

- Kidnapping, or in general, any violation of freedom of the persons mentioned in the preceding item;

- Failure to comply with or opposition to fulfilment of judicial or administrative decisions;

- Abnormal reduction in productivity.

In the case where there has been a behavior capable of being qualified as just cause for dismissal, the employer shall inform the employee, in writing, of his intention to dismiss the employee, via a disciplinary accusation with a detailed description of the facts that are attributed to the employee. On such date, the employer shall send a copy of the referred communication and of the disciplinary accusation to the employees’ committee and, if the employee is a union representative, to the respective union association.

The employee has 10 business days to consult the process and respond to the disciplinary accusation.

After this initial phase, and after the consultation procedures, the decision to dismiss must be grounded/substantiated, and presented in writing.

The decision determines the termination of the contract, as soon as it is received or known by the employee, or when for reasons only attributable to him/her, it was not received by the employee in due time.

Whenever there is just cause for dismissal, there is no compensation.

(d) Collective Dismissal

A collective dismissal occurs whenever an employer decides to terminate at least two or five employment contracts simultaneously or within a period of three months, respectively, depending on whether they involve a micro or small companies, in the first case. or a medium or large company, in the second, provided that such termination is based on closing one or more sections or equivalent structures or on a reduction of the number of employees due to economic, structural or technological reasons.

For these purposes, the following definitions apply:

(i) Market reasons: reduction in the activity of the company caused by a foreseeable decrease in demand for goods or services or the supervening practical or legal impossibility of placing these goods or services on the market;

(ii) Structural reasons: Structural reasons: economic and financial imbalance, changing business, restructuring productive organization, or replacement of dominant products;

(iii) Technological reasons: changes in technical or manufacturing processes, automation of production, control, or cargo-transport tools, as well as computerization of services or automation of means of communication.

An employer that intends to carry out collective dismissals must initiate the procedures by notifying the employees and their representatives of their intentions and reasons.

On the date the communication is made, the employer must send a copy of the communication to the competent service of the employment ministry in charge of employment affairs responsible for monitoring and promoting collective bargaining.

This is followed by a mandatory information and negotiation period. Generally, the labour authorities are present at this stage.

Once an agreement has been reached or, in the absence of such an agreement, after 15 days have elapsed from the date on which the intention to dismiss was communicated to the employees and their representatives, the employer may issue the final Collective Dismissal decision. This decision must be issued:

- 15 days prior to the termination date, in the case of an employee with a seniority of less than 1 year;

- 30 days prior to the termination date, in the case of an employee with seniority equal or greater than 1 year and less than 5 years;

- 60 days prior to the termination date, in the case of an employee with seniority equal to or greater than 5 years and less than 10 years;

- 75 days prior to the termination date, in the case of an employee with a seniority of 10 years or more.

In case of a collective dismissal, the employee is entitled to compensation, according to the following rules (depending on the date of entry into force of the employment contract):


(i) Employment contracts that came into force before November 1st, 2011: 


- For the period until October 31st, 2012: one month's salary for each year of the contract’s duration.

- From October 31st, 2012, until September 30th, 2013: 20 days of salary for each year the contract’s duration.

- After September 30th, 2013, until May 1st, 2023:

For the first three years of the contract: 18 days of salary for each year of the contract’s duration.

As for the remaining years: 12 days of salary for each year of the contract’s duration.

- After May 1st, 2023: 14 days of base remuneration and seniority for each full year of seniority.

If the total compensation amount for the duration of the contract until October 31st, 2012, or until September 30th, 2013, exceeds the legal limit of 12 monthly wages or € 220,800.00 (240 times the national minimum wage), the total compensation amount will be reduced to that amount.

The compensation cannot be less than the amount of 3 months' salary.


(ii) Employment contracts that came into force before November 1st, 2011: 


- Until September 30th, 2013: 20 days of salary for each year of the contract’s duration.

- After September 30th, 2013, and until May 1st, 2023:
For the first three years of the contract’s duration: 18 days' salary for each year of duration.

As for the remaining years: 12 days of salary for each year of duration.

- After May 1st, 2023: 14 days of basic remuneration and seniority payments for each full year of seniority.

If the amount of compensation for the duration of the contract until October 31st, 2012, or until September 30th, 2013, exceeds the legal limits of 12 monthly salaries or €220,800.00 (240 times the national minimum wage), the total compensation amount will be reduced to that amount.

(iii) Contracts that came into force after September 30th, 2013:

- Until May 1st, 2023: 12 days of salary for each year of the contract's duration, with the following maximum limits.

- After May 1, 2023: 14 days of base remuneration and seniority payments for each full year of seniority.

The salary according to which the compensation is calculated cannot exceed €18,400.00 (20 times the national minimum wage) and the overall amount of the compensation cannot exceed 12 monthly wages or €220,800.00 (240 times the national minimum wage).

In the case of a fraction of a year, the compensation amount is calculated proportionally.

It is presumed that employees accept the dismissal when they receive the compensation. This assumption may be rebutted provided that the employees deliver the full compensation amount to the employer or put is at his disposal.

The compensation rules presented above are applicable to dismissal due to extinction of the job position and dismissal due to unsuitability.

(e) Dismissal due to Job Position Extinction 

Dismissal due to job position extinction entails the termination of employment contracts promoted by the employer and based on such extinction, whenever it is due to the to market, structural or technological reasons, related to the company.

Dismissal due to job position extinction can only occur when all the following requirements are met:

(i) The reasons indicated are not due to an intentional behavior of the employer or the employee;

(ii) The continuation of the employment relationship is practically impossible (which happens whenever the employer does not have another job compatible with the employee’s professional category);

(iii) There are no term employment contracts in the company for tasks corresponding to the position being extinguished;

(iv) The collective dismissal does not apply.

If there is a plurality of job positions with identical functional content in the section or equivalent structure, in order to determine the specific job position to be extinguished, the employer must observe the following order of criteria by reference to the respective job holders:


- Worse performance review, with criteria previously known by the employee;

- Lowest academic and professional qualifications;

- Higher cost for the company of maintaining the employee’s employment contract;

- Least experience in the job position;

- Lowest seniority in the company.

In the event of dismissal due to job position extinction, the employer shall notify, in writing, the employees’ committee or, in lack thereof, the inter-union committee or the union committee, the employee involved and, if he/she is a union representative, the corresponding union association.

In the 15 days following the notification provided for above, the employees’ representative structure, the employee involved and, if he/she is a union representative, the corresponding union association may inform the employer of their reasoned opinion, and the alternatives that may lessen the effects of the dismissal.

The decision to dismiss shall be issued in writing.

The employer communicates the decision, via copy or transcription, to the employee (and, if he/she is a union representative, the corresponding union association), the employees’ committee (or, in lack thereof, the inter-union committee or the union committee), as well as the inspection service of the ministry in charge of the employment affairs, with a prior notice of 5 days from the deadline for the issuance of the employee’s representative structure’s, the affected employee’s, and in case he/she is a union representative, the corresponding union association’s opinion.


(f) Dismissal due to Unsuitability 

Dismissal due to unsuitability entails the termination of an employment contract promoted by the employer and based on the employee’s subsequent unsuitability for the job position.

Unsuitability occurs in any of the situations provided in the following subparagraphs, when, determined by the manner of performance of the employee’s functions, it renders the continuation of the employment relationship impossible:

(ii) Continued reduction in productivity or quality;

(iii) Repeated failures in resources assigned to the job position;

(iv) Risks to the safety and health of the employee, other employees or third parties.

An employee assigned to a technically complex or managerial position is also unsuitable when the objectives previously agreed upon in writing are not met as a result of the way they carry out their duties and it is impossible for the employment relationship to continue.

Dismissal due to unsuitability in the situations referred above can only take place when all the following requirements are met:

- Modifications were introduced in the job position as a result of changes in the manufacturing or commercialization process, of new technologies or equipment based on different or more complex technology, in the 6 months preceding the beginning of the procedure;

- Adequate professional training was given in relation to the modifications introduced in the job position, by a competent authority or certified training entity;
- After the training, the employee was given an adaptation period of, at least, 30 days, on the job or outside of it,
whenever the performance of duties for that position is likely to cause damage or risks to the safety and health of the employee, other employees or third parties;

- There is no other job position available at the company that is compatible with the employee’s professional category.


In the case of dismissal due to an unsuitability, the employer must notify in writing the employees’ commission, or in its absence, the inter-union committee or the union committee, the employee, and if the employee is a union representative, the respective trade union.

Within 10 days of the notification, the employees' representative structure, the employee involved and, if the latter is a union representative, the respective union association may inform the employer of their reasoned opinion, in particular on the reasons justifying the dismissal, and may present documents and request other means of proof that are considered relevant.

30 days after the end of this period, the employer follows through with the dismissal, by means of a reasoned decision in writing.

The employer shall communicate the decision, via copy or transcription, to the employee (and, if they are a union representative, the corresponding union association), the employees’ committee (or, in lack thereof, the inter-union committee or the union committee), as well as the inspection service of the ministry in charge of the employment affairs, with a prior notice identical to the case of collective dismissal.

Within 90 days following dismissal due to unsuitability, the level of employment in the company must be ensured by hiring or transferring of employees during a procedure for dismissal for a fact that is not attributable to him/her.

Unlawful dismissal

Dismissed employees can take legal action before a Labor Court to discuss the termination of their employment contracts.

If the Court decides that there was any unlawfulness in the procedure, or lack of reasons or compliance with formalities in the dismissal, the employees may choose between being reinstated at the company, or receiving compensation ranging from 15 to 45 days of base remuneration and seniority for each full year or fraction of a year of seniority, with a minimum of three months base remuneration and seniority.

In both situations, employees will be entitled to receive the wages they would have received if they had not been dismissed, and eventual compensation for damages suffered.


1.8.3 Employment Contract Termination at the Employee's Initiative

(g) Unilateral Employment Contract Termination by the Employee with Just Cause

If the employment relationship becomes immediately impossible to maintain, in such terms that constitute just cause, the employee may terminate it immediately.

For example, failure to pay the remuneration for a period of 60 days constitutes just cause, as well as cases when the employer, at the request of the employee, states in writing that they predict that the outstanding remuneration will not be paid until the expiration of such period.

The employee shall notify the employer of the unilateral termination of the contract, in writing, with a brief indication of the facts that justify it, within 30 days of having become aware of said facts.

In case of unilateral termination of the contract, the employee is entitled to compensation, to be determined between 15 and 45 days of base remuneration and seniority payments for each full year of seniority, considering the value of the remuneration and the degree of unlawfulness of the employer’s behavior, and which shall not be less than 3 months of base remuneration and seniority payments.

In the case of a fraction of a year’s seniority, the amount of compensation shall be calculated proportionally.

In the case of a term contract, the compensation may not be less than the amount of remuneration due.

If the just cause for unilateral termination is not proven, the employer shall be entitled to a compensation for the damages caused, no lower than the amount calculated under the terms referred to below, for case of unilateral termination without prior notice.


(h) Unilateral Employment Contract Termination by the Employee

Unilateral termination with prior notice: the employee may unilaterally terminate the contract regardless of just cause, by notifying the employer, in writing, at least 30 or 60 days in advance, depending on whether he/she has up to 2 years or more than 2 years of seniority, respectively.

The collective bargaining instrument and the employment contract may increase the notice period to 6 months, when considering an employee holding a managerial or board position or a representation or responsibility role.

In the case of a term employment contract, unilateral termination must be carried out at least 30 or 15 days in advance, depending on whether the duration of the contract is at least 6 months or less.

Unilateral termination without prior notice: the employee who does not comply, in whole or in part, with the notice period shall pay the employer a compensation equal to base remuneration and seniority payments corresponding to the missing notice period, notwithstanding compensation due for damages caused by the non-compliance with the prior notice or duty arising from a permanence agreement.


1.8.4 Work Compensation Fund, Equivalent Mechanism and Work Compensation Warranty Fund


The Work Compensation Fund (“FCT”) has been converted into a closed-end accounting fund, which is now constituted by the global accounts of each employer in it.

The balance of each employer's global account corresponds to the sum of the balances of the individual accounts of each of its employees, which are extinguished and thus merged into a single global account. Debts to the Work Compensation Warranty Fund (“FGCT”) and operating costs are also deducted from this balance.

The balance of each employer is now available for consultation on the Compensation Funds portal, after the merger of the employee’s individual accounts into the employer’s global account. The balance is then updated monthly.

Given the closed-end nature of this accounting fund, employers are no longer obligated to join the FCT (or an equivalent mechanism), nor obligations to make payments to this fund in relation to their employees.

On the other hand, the following were eliminated:

(i) Any ongoing administrative offence proceedings and debts relating to amounts not delivered by employers to the FCT, as well as the respective default interest;

(ii) Initiated and ongoing enforcement proceedings for the collection of amounts owed by employers to the FCT, as well as the respective default interest;

On the other hand, the following new purposes were introduced to the FCT:

(i) Supporting employees’ housing costs and investments;

(ii) Supporting other investments agreed upon between employers and employees' representative structures, such as the construction of daycares and cafeterias;

(iii) Financing employees’ qualifications and certified training.

Finally, the decent work agenda also brought about the suspension of the obligation to communicate adherence to the FGCT, as well as the suspension of the creation of debts to the FGCT and the procedures for their regularization.

Remuneration is the benefit to which, according to the contract, the rules that govern it or the uses, employees are entitled to in exchange for their work.

Remuneration comprises the base remuneration and other regular and periodic benefits paid, directly or indirectly, in cash or in kind.

There are several types of remuneration, since it can be fixed, variable or mixed, the latter comprising both a fixed amount and a variable amount.

Employees are entitled to a Christmas allowance corresponding to 1 month's remuneration, which must be paid until December 15th of each year.

In the following situations, the Christmas allowance amount is proportional to the time of service rendered in that calendar year, in the following situations:

(i) Employee’s Year of admission;

(ii) Employment contract’s termination year;

(iii) In the event the employment contract’s suspension for reasons related to the employee.


Employees are also entitled to receive a salary during vacations. The remuneration for the vacation period corresponds to which the employee would receive if they were effectively working.

In addition to this remuneration, employees are entitled to a vacation allowance, comprising the base remuneration and their salary benefits that are paid in exchange for the specific way in which the work is carried out.

Unless otherwise agreed upon in writing, the vacation allowance shall be paid before the beginning of the vacation period, and proportionally in case he/she enjoys his/her vacation in stages.

Employees under a work-schedule exemption regime are entitled to a specific remuneration, established by a collective bargaining instrument, or lack thereof, not inferior to:


- 1 hour of overtime work per day;

- 2 hours of overtime work per week, in the case of a work-schedule exemption regime with compliance with the normal working period.

Employees holding a management or board position may waive this specific remuneration.

Nightwork shall be paid with an increase of 25% to the payment of equivalent work during the day, unless the applicable collective bargaining instrument foresees otherwise.

Overtime work is paid at the normal hourly rate with the following increases:

(i) Overtime up to 100 hours per year:
- 25% for the first hour or fraction thereof and 37.5% per subsequent hour or fraction, on business days.

- 50% for each hour or fraction thereof, on mandatory or complementary weekly rest days, or on public holidays.

(ii) Overtime of more than 100 hours per year:

- 50% for the first hour or fraction thereof and 75% per subsequent hour or fraction, on business days.

- 100% for each hour or fraction thereof, on mandatory or complementary weekly rest days, or on public holidays.

Collective bargaining agreements may provide higher percentages for the payment of overtime.

When employees render normal work on a mandatory weekly rest day, they are entitled to a paid compensatory rest day, to be enjoyed within the following three business days. Collective bargaining agreements may establish different rules that are more favorable to the employees.

In determining the remuneration amount, one shall consider the quantity, the nature and quality of the work and respect the equal work, equal pay principle.

The hourly remuneration amount is calculated according to the following formula:

"MS" x 12
  52 x "n"

where "RM" corresponds to the monthly remuneration amount, and "n" to the normal weekly working period.

Employees are granted a minimum wage, regardless of the type of remuneration, the value of which is determined annually by specific legislation, upon consulting the Standing Committee for Social Dialogue.

As of January 2026, the national minimum wage is set at € 920.00 gross per month, for mainland Portugal (14 months per year). However, higher minimum wages can be established in collective bargaining instruments.

Despite setting limits on working hours, Portuguese labour law also provides for several mechanisms that introduce flexibility in the organization of employees’ working time.

Portuguese labour law establishes a maximum of 8 hours of daily work and 40 hours of weekly work. Collective bargaining instruments may set lower limits.

Through a collective bargaining instrument, the normal working period may be defined on an average basis, provided that the maximum hourly work limits are observed during the preset reference period.

A bank of hours regime may be established through a collective bargaining instrument, or through an employee referendum.

Night work is defined as work carried out between 10:00 p.m. and 7:00 a.m. (collective bargaining instruments may define another period).

Overtime work corresponds to work rendered outside the work schedule. Overtime shall only be rendered when the company has to meet a temporary increase in work which does not justify the admission of another employee, and it is subject, per employee, to following limits:

(a) 175 or 150 hours per year, depending on whether it is a micro or small-sized company, or medium-sized or large company, respectively. This limit can be increased up to 200 hours by a collective bargaining instrument;

(b) 2 hours per working day.

Employees may be required to render overtime work in the event of force majeure or if it is indispensable to prevent or repair severe harm to the company or its viability.

Rendering overtime work is mandatory for the employees, except when they expressly request to be excused due to a legitimate reason.

Rendering overtime work entitles employees to extra remuneration (vd. 2.1).

By virtue of the overtime work rendered, employees may also be entitled to paid compensatory rest under the following terms:

(a) When the overtime rendered prevents employees from enjoying their daily rest, they are entitled to paid compensatory rest equivalent to the missing rest hours, to be enjoyed in one of the following three business days.

(b) When overtime work is rendered on a mandatory weekly rest day, employees are entitled to a paid compensatory rest day, to be enjoyed within the following three business days.

Mandatory public holidays are January 1st, Good Friday (which may be enjoyed on another day with local significance during the Easter period), Easter Sunday, April 25th, May 1st, Corpus Christi, June 10th, August 15th, October 5th, November 1st, December 1st, 8th and 25th. Via specific legislation, certain mandatory holidays may be enjoyed on Monday of the following week.

In addition to the mandatory holidays, collective bargaining instruments or employment contracts may foresee the enjoyment of Carnival Tuesday and local holidays may be observed as public holidays, by means of a collective labor regulation instrument or employment contract.

On days considered as mandatory public holidays, all activities that are not allowed on Sundays must be closed or suspended.

Employees are entitled, in each calendar year, to a period of paid vacation, which becomes due on January 1st.

The right to vacation cannot be waived and effective vacation time cannot be substituted, even with the employee’s consent, by any form of compensation, of an economic nature or other, without prejudice to the possibility of the employee to waive vacation days, as long as the minimum limit of 20 business days is ensured.

The annual vacation period has a duration of 22 business days. Collective bargaining instruments can increase this annual vacation period.

Vacation shall be taken within the calendar year in which it becomes due. However, vacation may also be taken until April 30th of the following calendar year, whether or not in accumulation with the vacation that becomes due that year.

In the year of hiring, the employee shall be entitled to 2 business days of vacation for each month of duration of the contract, up to 20 days, the enjoyment of which may take place after 6 full months of performance of the contract. If the end of the calendar year arrives before that period, vacation shall be taken until June 30th of the subsequent calendar year. These considerations also apply in the year of termination of a prolonged impediment initiated in a previous year. From the application of these provisions cannot result in enjoyment, in the same calendar year, of more than 30 business days of vacation.

If the duration of the employment contract is less than 6 months, the employee is entitled to 2 business days of vacation for each full month of duration of the contract.

Whenever it is compatible with the nature of the activity, the employer may close the undertaking or establishment, totally or partially close, for the vacation of the employees:

(a) Up to 15 consecutive days between May 1st and October .31st;

(b) For a period longer than 15 consecutive days or outside the period stipulated in the previous subparagraph, when established in a collective labor regulation instrument or with the favorable opinion of the employees’ committee;

(c) For a period exceeding 15 consecutive days, from May 1st to 31st October, when required by the nature of the activity.

The employer may totally or partially close the undertaking or establishment, for vacation of the employees:

(a) For 5 consecutive business days, during the Christmas school holidays;

(b) For a day between a public holiday that occurs on Tuesday or Thursday and a weekly rest day, provided that the employer informs the employees covered by the closure by December 15th of the previous year.

The employer may change the vacation period already scheduled or interrupt a vacation period already commenced due to overriding requirements related to the operation of the undertaking, and the employee shall be entitled to compensation for the losses suffered by not taking the vacation in the scheduled period.

Absence shall mean the absence of an employee from a place where they have to work during the normal daily working period.

In case of absences of the employee for periods shorter than the normal daily working period, the respective absences are added up to determine the absence to the normal daily working period. If the duration of the normal daily working period is not always the same, the average duration is considered.

The notification of absence, when foreseeable, shall be made to the employer, accompanied by the indication of the justification, at least 5 days in advance. If this anticipation period cannot be complied with, namely because the absence was unpredictable 5 days in advance, notification to the employer shall be made as soon as possible.

Justified absences do not affect any rights of the employee. However, the following justified absences determine the loss of remuneration:

(a) Those due to illness, provided that the employee benefits from a Social Security regime that grants protection in the event of illness;

(b) Those due to a work accident, provided that the employee is entitled to any allowance or insurance;

(c) Absence to assist a member of the household;

(d) Absences that by law are considered to be justified when they exceed 30 days per year;

(e) Those authorized or approved by the employer.
Unjustified absence determines loss of remuneration corresponding to the period of absence, which is not included in the seniority of the employee.

In the case of presentation of an employee with unjustified delay:

- If it is longer than 60 minutes and for the start of daily work, the employer may not accept the provision of work during the entire normal working period;

- If it is longer than 30 minutes, the employer may not accept the provision of work during that part of the normal working period.

The loss of remuneration due to absences can be replaced:

(a) By waving the equal number of vacation days, up to the extent permitted by the vacation period (see point 4.2), upon express statement of the employee notified to the employer;

(b) By providing work in addition to the normal period within the limits provided by adaptability by collective regulation (see point 3), when the instrument of collective labor allows it.

These considerations do not imply a reduction in the vacation allowance corresponding to the vacation period that became due.

For purposes of collective defense and pursuit of their rights and interests, employees may set up:

(a) Union associations;

(b) Employees' committees and employees' subcommittees;

(c) Employees' representatives for occupational safety and health;

(d) Other structures provided for specific legislation, such as European Works Councils.

The employees’ collective representation structures are independent from the State, political parties, religious institutions or associations of another nature, and any interference of the same in the organization and management of the former, as well as their reciprocal financing is prohibited.

Employees are free to join a union association, without suffering any kind of discrimination.

Under the terms of the Portuguese Constitution, the strike is an unwaivable right of employees.

The decision to strike is, usually, decided by union associations.

However, employees’ assemblies of the undertaking may decide to strike provided that:

(a) The majority of the employees are represented by union associations;

(b) The assembly is convened for this purpose by 20% or 200 employees;

(c) The majority of employees participate in the voting;

(d) The deliberation is approved by secret votes by the majority of the voters.

The strike must be notified by the employer with at least 5 business days in advance. In undertakings or establishments intended to meet essential social needs, the prior notice of the strike is, at least, 10 business days.

The employer may not, during the strike, replace the strikers with people who, on the date of the prior notice, did not work in the corresponding establishment or service.

Likewise, the employer shall not hire a company to carry out the strikers' tasks, except in the event of failure to perform the minimum services necessary to meet the essential social needs or to ensure the safety and maintenance of equipment and facilities, insofar as it is strictly necessary to the provision of such services.

As for the effects of the strike, it suspends employment contracts of the joining employees, namely the right to remuneration, and, consequently, frees them from the duty to accept orders and to show up for work.

The strike ends by agreement of the parties, by decision of the entity that declared it or at the end of the period for which it was declared.

Coercion, harm or discrimination of an employee due to them joining or not joining a strike is prohibited.

lock-ouLock-out is any total or partial shutdown of the company or the prohibition of access to workplaces to some or all of the employees and, also, the refusal to provide work, working conditions and tools that determines or may determine the paralysis of some or all sectors of the undertaking, provided that, in any case, aims to achieve purposes unrelated to the normal activity of the undertaking, by unilateral decision of the employer.

In Portugal, lock-out is prohibited.prohibited.

Foreign or stateless employees who are authorized to engage in a subordinate professional activity in Portugal have the same rights and are subject to the same duties as Portuguese employees.

The employment contract entered into with a foreign or stateless employee is subject to written form and must contain, without prejudice to other requirements in the case of a term contract, the following information:

(a) Identification, signatures and address or head office of the parties;

(b) Reference to the work visa or the residence or permanence permit of the employee in Portugal;

(c) Activity of the employer;

(d) Activity to be rendered and remuneration of the employee;

(e) Workplace and normal working period;

(f) Value, periodicity and form of payment of remuneration;

(g) Dates of conclusion of the contract and beginning of the performance of activity.

The employee must also attach to the contract the identification and address of the person or persons receiving a pension in case of death resulting from a work accident or occupational disease.

The employment contract must be drawn up in duplicate (one for each party). The copy of the contract that is kept with the employer must be accompanied by documents providing compliance with legal obligations relating to the entry and permanence or residence of the foreign or stateless citizen in Portugal, and duplicates of the same documents shall be attached to the remaining copies.

Without intending to exhaust the subject, given that there are numerous forms of legal stays available to foreigners, this guide will describe provide some information about two types of visas: temporary stays and residence visas.

Transit and short-term visas may be valid for one or more Member States of the Convention, while temporary-stay and residence visas are only valid for Portuguese territory.

Residence and temporary-stay visas are only granted to citizens of third-party countries who have not been subject to forced removal from the country and are in the subsequent period of being prohibited from entering national territory; have not been included on the no-entry list in the Schengen Information System by any of the contracting parties; or in the Integrated Information System of the SEF; and they have means of subsistence, a valid travel document, and travel insurance.

To be granted a residence visa to work as an employee or to be self-employed, to study, for student exchange, an internship or for volunteer work, or a visa for temporary or short stay, a citizen from a third-party state is also required to have a ticket document that ensures his or her return.

A prior decision of the SEF is mandatory to issue a visa in the following cases:

a) When residence and temporary-stay visas are requested (but, in urgent and duly justified cases, prior consultation may be waived specifically when dealing with applications for a residence visa to work independently or for a temporary stay);
b) When determined as such for reasons of national interest, for reasons of national security, or for the prevention of illegal immigration and related crime.

Foreign citizens admitted into national territory under the law who wish to remain in the country for a period of time longer than originally authorized may extend their stay. The periods for extension of stay are described in the terms of their visas, as listed below. In addition to these time limits, an extension of stay may be granted pending application for a residence permit, as well as in duly justified cases.

In exceptional circumstances occurring after legal entry into national territory, relatives of holders of temporary entry visas may be granted an extension of stay. Neither the validity nor the duration of the extension of stay may be longer than the validity and duration of the visa granted to the family.

Without limitation to sanctions stipulated by law, and except in the case of exception circumstances, requests for extension of stay are not granted, when submitted 30 days after the end of the authorized period of stay.

An extension of stay is granted in the form of a sticker approved by the Minister of Home Affairs.

7.1.1 Temporary Visa

A temporary visa is valid for 3 months and can be used for multiple entries in Portuguese territory. However, a temporary visa issued for temporary employed work may be granted for the duration of the employment contract.

With temporary visas, an extension of stay may be granted for up to one year, renewable for an equal period (except in cases of temporary work or self-employment exceeding no more than 6 months, in which case the extension is only allowed up to 90 days).

The deadline for a decision on a request for a temporary visa is 30 days from submission of the application.

We address below the most relevant types of temporary visas for this Investor's Guide:

- Temporary visa to transfer employees;
- Temporary visa for temporary professional activity;
- Temporary visa for research or highly qualified activity;
- Transit visa;
- Short stay visa.

Temporary Visa to Transfer Employees

The granting of temporary entry visas to nationals of Member States to the World Trade Organization, transferred in the context of providing services or conducting training in Portuguese territory, is subject to verification of the following conditions:

a) The transfer must take place between establishments of the same company or group of companies, and the establishment must be located in Portuguese territory to provide services equivalent to those provided by the institution from which the foreign worker has been transferred;
b) The transfer has to be for partners or subordinate workers who have worked for at least one year at the establishment located in another Member State to the World Trade Organization, which fall under the following categories:

i) Those who have executive powers and work as senior executives of the company and essentially manage a department or establishment, receiving general guidance from the board;
ii) Those who possess specialized knowledge essential to the business, research equipment, techniques or management thereof;
iii) Those who have to receive training at the office in Portugal.

Temporary Visa for Temporary Employment

Temporary entry visas for nationals of third-party countries who intend to work in Portuguese territory may be granted, provided that they possess a promise for work or employment contract.

A temporary visa for temporary work is granted for the duration of the employment contract. In exceptional circumstances, a temporary visa for temporary work may be granted for a period exceeding six months, provided that the job falls is part of an investment contract and up to the time limit for its execution.

This visa may only be renewed if the applicant has a lawful employment contract and is covered by the National Health Service or has other health insurance.

Temporary Visa for Research or Highly Qualified Activities

A temporary visa may be granted to foreign nationals who wish to pursue research, teaching at an institution of higher learning, or another highly qualified activity for less than one year, provided that the:

a) Applicant has been hired to work in a research center approved by the Ministry of Science, Technology and Higher Education, through a promise or employment contract, a proposal or service agreement, or a grant for scientific research; or
b) Applicant has a promise or employment contract or written proposal, or a contract to provide services to teach at an institution of higher learning, or to perform a highly qualified activity in Portugal.

This visa may only be renewed if the applicant has an employment or service contract or a grant for scientific research and is covered by the National Health Service or other health insurance.

In the case of shorter stays, the following visas may also be issued:

A transit visa is intended to allow entry to Portugal to foreign nationals who wish to enter a third country to which their admission has been guaranteed.

A transit visa may be granted for one, two, or in exceptional cases, multiple entries, provided the duration of each transit does not exceed five days.

With transit visas, a stay may be extended for a maximum of up to five days.

A short-stay visa is intended to allow entry to Portugal to those whose purposes have been accepted by authorities and do not warrant the granting of another type of visa, especially for tourism or visits from family members who hold temporary visas.

The visa may be granted for a period of one year, allowing for one or more entries, provided that the duration of a single visit, or the total duration of successive visits, does not exceed three months per semester from the date of the first foreign entry.

In duly justified cases, and where it is of interest to Portugal, a multiple entry visa for a duration of longer than one year may be granted by joint decision of the Ministers of Home Affairs and Foreign Affairs, for certain groups of people.

In the case of short-stay visa holders (as well as foreign citizens without a visa), this extension is for 90 days, and may be renewed for an equal period of time. An extension of stay granted to citizens admitted to the country without a visa and short-term visa holders is limited to Portugal whenever the stay exceeds 90 days per semester, from date of initial entry from abroad.

7.1.2 Residence Visa

A residence visa is intended to enable the holder to enter Portuguese territory in order to apply for a residence permit and is valid for two entries in Portuguese territory, allowing the holder to stay for a period of four months. Without limitation to shorter time limits imposed by this law, the deadline for a decision on the application for a residence visa is 60 days.

With residence visas, an extension of stay may be granted for up to 90 days.

This type of visa may be granted in several ways, however, we believe that the following three reasons are most relevant to this Guide:

- To work as an employee;
- To work as an independent professional or immigrant entrepreneurs;
- To carry out research or other highly qualified activities

Residence Visa to Work as an Employee

A residence visa to work as an employee may be issued to foreign nationals who satisfy the general conditions set out above (see 8.1) and who:

a) hold an employment contract or the promise of an employment contract; or
b) possess skills, competencies, or qualifications that are acknowledged and appropriate to engage in one of the activities covered by the preceding paragraph and have received a specific expression of interest from the employer.

Residence Visa to Work as an Independent Professional or Immigrant Entrepreneur

Visas to apply for residence permits to engage in independent professional work may be given to a foreign national who:

a) has a contract or written proposal for a service agreement to work as an independent contractor; and
b) has the skills to work as an independent contractor, where applicable.

A residence visa for immigrant entrepreneurs who wish to invest in Portugal is granted, provided that:

a) they have made investments, or
b) they can prove that they have funding available in Portugal, including funds from financing obtained from a financial institution in Portugal, and they demonstrate by any means their intention to make an investment in Portugal.

Residence Visa for Research or other Highly Qualified Activity

A residence visa is granted for conducting scientific research to foreign nationals who have been admitted to work as a researcher at a research center approved by the Ministry of Science, Technology and Higher Education, mainly through a promise or employment contract, a written proposal or a service agreement, or a grant for scientific research. A residence visa is also granted to teach at an institute of higher learning, or to perform other highly qualified activities, to foreign nationals who have an adequate promise or employment contract, written proposal or service agreement.

The deadline for a decision about the visa application is 30 days.

A residence visa to work as an employee may be issued to foreign nationals who satisfy the general conditions set out above (see 8.1) and who:

a) hold an employment contract or the promise of an employment contract; or
b) possess skills, competencies, or qualifications that are acknowledged and appropriate to engage in one of the activities covered by the preceding paragraph and have received a specific expression of interest from the employer.

Residence Visa to Work as an Independent Professional or Immigrant Entrepreneur

Visas to apply for residence permits to engage in independent professional work may be given to a foreign national who:

a) has a contract or written proposal for a service agreement to work as an independent contractor; and
b) has the skills to work as an independent contractor, where applicable.

A residence visa for immigrant entrepreneurs who wish to invest in Portugal is granted, provided that:

a) they have made investments, or
b) they can prove that they have funding available in Portugal, including funds from financing obtained from a financial institution in Portugal, and they demonstrate by any means their intention to make an investment in Portugal.

Residence Visa for Research or other Highly Qualified Activity

A residence visa is granted for conducting scientific research to foreign nationals who have been admitted to work as a researcher at a research center approved by the Ministry of Science, Technology and Higher Education, mainly through a promise or employment contract, a written proposal or a service agreement, or a grant for scientific research. A residence visa is also granted to teach at an institute of higher learning, or to perform other highly qualified activities, to foreign nationals who have an adequate promise or employment contract, written proposal or service agreement.

The deadline for a decision about the visa application is 30 days.

There are two types of residence permit:

a) Temporary residence permit;
b) Permanent residence permit.

A foreign citizen authorized to reside in Portugal is issued a residence permit.

7.2.1 Temporary Residence Permit

In this case, a residence permit is issued to foreign citizens, valid for a period of 1 year from the date of its issuance, renewable for successive periods of two years.

Renewal of the residence permit must be requested at least 30 days before it expires, and it requires verification of several requirements, namely, the existence of means of subsistence, accommodation, good standing with the Finance and Social Security departments, and not having been sentenced for a term of more than one year in prison.

Without limitation to the special conditions for granting a residence permit, the applicant must meet the following cumulative conditions as well:

a) Possession of a valid residence visa, granted for the purposes set forth by law to grant a residence permit;
b) Absence of any fact which, if known by the competent authorities, should preclude granting the visa;
c) Physical presence in Portuguese territory;
d) Possession of means of subsistence;
e) Housing;
f) Enrolment in Social Security, where applicable;
g) No criminal conviction punishable in Portugal by imprisonment for a term exceeding one year;
h) Not being prohibited from re-entering Portugal, after being removed from the country;
i) No marks in the Schengen Information System;
j) No marks in the Integrated Information System of the SEF for the purpose of refusing entry.

7.2.2 Permanent Residence Permit

In this case the law does not establish a term of validity. A permanent residence permit should, however, be renewed every 5 years or whenever changes occur to the identification information recorded therein.

A permanent residence permit, to be presented to the SEF, is contingent upon verification of the following cumulative requirements: foreign nationals must have had a temporary residence permit for at least 5 years; during this period, they cannot have been sentenced to more than one year in prison; they must have means of subsistence and accommodation; and they must prove to have basic knowledge of the Portuguese language.

For all legal intents and purposes, a residence permit replaces an identification document.

The application for a permanent residence permit and a permit renewal must be decided within 60 and 30 days, respectively. If a decision isn’t made by the specified time, it is considered tacitly granted, and the residence permit is issued immediately.

A residence permit holder has the right to education and instruction, to work as an employee or independently, professional training, access to health care, and access to the law and courts. Residence permits also ensure equal treatment in matters of social security, tax benefits, union membership, recognition of diplomas, certificates and other professional qualifications, or access to goods and services available to the public, as well as the application of provisions granting special rights.

7.3 Residence Permit to Work 

Residence Permit to Work as an Employee

In addition to the general requirements established in 7.2.1 above, residence permits to work as an employee are only granted to foreign nationals who have employment contracts that abide by the law and are enrolled in Social Security.

In exceptional cases, the requirement of having a valid residence visa may be waived, provided that foreign nationals not only meet the general conditions in this item, but also the following ones:

a) they have an employment contract or employment relationship confirmed by a union, association with a seat on the Advisory Council or the General Inspectorate of Labour;
b) they have entered the country legally and remain there legally;
c) they are enrolled in and are in good standing with Social Security.

Residence Permit to Work Independently

In addition to the general requirements set out in section 7.2.1, a residence permit to work independently is only granted to foreign nationals who meet the following requirements:

a) they have formed lawful companies, declared the start of business with the tax administration and Social Security as an individual, or executed a service agreement to work as an independent contractor;
b) they are qualified to work as an independent contractor, as applicable;
b) they are able to sustain themselves;
c) they are registered with Social Security;
d) when required, they have a statement from their professional body confirming that they have met the enrolment requirements.

A residence permit holder who works independently may work as an employee, with the provisions stipulated further above applying, along with the appropriate adaptations, upon replacement of the residence permit.

Residence Permit for Research or other Highly Qualified Activity

A residence permit is granted to foreign nationals to pursue research, to teach at an institution of higher learning, or other highly qualified activity, who, in addition to the conditions set out for granting temporary residency (see 7.2.1), must also meet the following requirements:

a) they have been hired to work in an officially recognized research centre, especially by means of an employment contract, a service agreement, or a grant for scientific research, or
b) they have an employment contract or service agreement compatible with teaching at an institution of higher learning or performing another highly qualified activity;
c) they are enrolled in Social Security.

Additional information relating to other types of visas, residence permits, and ways of extending these visas may be found on the website of the Bureau of Immigration and Borders.

Residence Permit for Research or other Highly Qualified Activity

New legal provisions open up the possibility of applying for a residence permit for pursuing investment activities to those who have entered the country regularly (v.g. holders of valid Schengen Visas, or beneficiaries of Visa exemption), by transferring capital, creating jobs or acquiring real estate, with advantageous periods of stay in Portugal. More info here.

Foreign nationals may secure long-term resident status, provided that they have resided legally and continuously in the country for five years immediately preceding their application, and they have stable, regular income sufficient for their own subsistence and that of their family, health insurance, housing, and demonstrated fluency in basic Portuguese.

This application should be filed at the SEF office in the applicant’s district. The applicant will be notified in writing of the decision within six months (in exceptional circumstances associated with the complexity of an application, the deadline may be extended for three months, with the applicant informed of said extension). Failure to notify within a 9-month period implies tacit acceptance of the request.

Long-term resident status is permanent and based on a title ("EC title") whose duration has a minimum validity of five years and is automatically renewable, upon application, while valid.

Recipients of long-term status enjoy equal treatment with nationals under the Constitution and the law.

New legal provisions open up the possibility of applying for a residence permit for pursuing investment activities to those who have entered the country regularly (v.g. holders of valid Schengen Visas, or beneficiaries of Visa exemption), by transferring capital, creating jobs or acquiring real estate, with advantageous periods of stay in Portugal.

The holders of Golden Residence Permit for Investment Activity have the right to family regrouping, and may gain access to a permanent residence permit, as well as to Portuguese citizenship in accordance to the current legal provisions.