Overview of Portuguese Labor Law and Employment Policies

Employment Law Overview

• Key Legislation:
  • Labor Code (Código do Trabalho)
  • Social Security Law (Lei da Segurança Social)
  • Tax Code (Código Fiscal)
• Legal Characteristics:
  • Aims to protect employee rights and promote workplace fairness.
  • Sets standards for minimum wage, working hours, vacation, termination, and severance.

Employment Contract Requirements

• Contract Types:
  • Fixed-term contracts
  • Indefinite-term contracts
• Contractual Provisions:
  • Must include job description, remuneration, working hours, termination conditions, etc.
• Language and Currency:
  • Contracts must be in Portuguese and currency must be in Euros (EUR).

Working Time Regulations

• Standard Working Hours: 40 hours per week, 8 hours per day.
• Rest Days and Breaks: Minimum of 24 hours of rest per week, 11 hours of rest per day.

Vacation Policy

• Annual Leave: 22 days of paid annual leave per year.
• Public Holidays: 13 national public holidays.
• Special Leaves:
  • Sick Leave: 55% to 70% of salary paid, depending on duration and nature of illness.
  • Maternity Leave: 120 or 150 days of paid maternity leave.
  • Paternity Leave: 28 days of paid paternity leave, 7 days of voluntary paternity leave.
  • Parental Leave: 78 or 108 days of paid parental leave for both parents.

Employee Severance and Contract Termination

• Notice Period:
  • During probationary period: No notice period
  • After probationary period:
    • Less than 1 year of service: 15 days
    • 1 to 5 years of service: 30 days
    • 5 to 10 years of service: 60 days
    • Over 10 years of service: 75 days
• Severance Pay:
  • 12-18 days of salary per year of service, capped at 12 months.
• Unfair Dismissal Protection:
  • Employees have the right to compensation for unfair dismissal.

Tax Law

• Personal Income Tax:

  • Salary Range (EUR)	Tax Rate
    0 - 7,479	14.5%
    7,479.01 - 11,284	23%
    11,284.01 - 15,992	26.5%
    15,992.01 - 20,700	28.5%
    20,700.01 - 26,355	35%
    26,355.01 - 38,632	37%
    38,632.01 - 50,483	43.5%
    50,483.01 - 78,834	45%
    78,834.01 and above	48%

• Social Security Contributions:

  • Employee: 23.75%
  • Employer: 26.50%

Health Insurance

• Insurance Policy:
  • Employees are required to participate in the national healthcare system.
• Insurance Coverage:
  • Provides basic healthcare services.

Compensation and Benefits

• Minimum Wage: €760 per month.
• Salary Structure:
  • Typically includes base salary, bonuses, and allowances.

Work Permits and Visas

• Permit Requirements:
  • Non-Portuguese citizens from outside the EU/EEA require a work permit or visa.
• Application Process:
  • Apply through the Portuguese Immigration and Borders Service (SEF).

Confidentiality and Non-Compete Clauses

• Enforceability:
  • Confidentiality and non-compete clauses are enforceable in Portugal.
• Common Provisions:
  • Restrict employees from disclosing confidential information or engaging in competitive activities after leaving employment.

Training and Development

• Legal Requirements:
  • Employers must provide safety training and opportunities for skill development to employees.
• Government Support:
  • Government provides funding and incentives to support employee training.

Workplace Diversity and Inclusion

• Legal Requirements:
  • Prohibits discrimination based on race, gender, religion, or other protected characteristics.
• Enforcement Measures:
  • Employers must establish policies and procedures to ensure compliance.

Remote Work Policy

• Legal Framework:
  • Remote work is supported by law, but employers must comply with certain regulations.
• Tax and Insurance Implications:
  • Remote work may impact tax and social security contributions.

Authoritative Website Addresses

• Portuguese Ministry of Labor: https://www.mtss.gov.pt/
• Portuguese Social Security Institute: https://www.seg-social.pt/