Employment Laws in Portugal: Hiring & Compliance Guide

What are the contractual agreement requirements in Portugal?

Portuguese employment contracts are generally not subject to a special form unless the law requires one. An employment relationship may be established verbally or in writing.

However, employers must provide employees with written information on key employment terms, including the workplace, duties, start date, pay, working time, leave, notice requirements, accident insurance, and any applicable collective agreement. Certain contract types, including fixed-term contracts, must be documented in writing.

Fixed-term contracts

Fixed-term contracts must be in writing and state the agreed term or expected duration, the factual reason for using a term contract, the employee’s work and remuneration, the workplace and normal working hours, and the relevant start and end dates.

If required formalities, such as written form, signatures, or sufficient references to the term and its justification, are missing, the contract may be treated as an open-ended contract.

Open-ended employment contracts

The standard legal form of hire in Portugal is the open-ended, or permanent, employment contract. This means the employment relationship between the employer and the employee is indefinite, unlike fixed-term contracts. It has no predetermined expiry date and continues until it is terminated through a legally recognized process.

Trial period

The trial period (also referred to as the probationary period) is the initial stage of employment during which both parties assess whether to continue the employment relationship.

For open-ended (indefinite) contracts, the probationary period is:

• 90 days for most employees
• 180 days for specified technical, high-responsibility, specially qualified, trust-based, first-job, and long-term unemployed categories
• 240 days for management positions or senior staff

For fixed-term (definite) contracts, the probationary period is:

• 30 days, where the contract lasts at least six months
• 15 days where the contract is shorter than six months

The parties may exclude or reduce probation in writing, and specified prior employment, temporary work, service, or traineeship periods may reduce or eliminate it.

There is no general statutory requirement to draft an employment contract in a particular language. However, a Portuguese or bilingual version is advisable since a Portuguese version or official translation may be required during litigation.

Using the wrong contract type can cause a fixed-term agreement in Portugal to be treated as open-ended, increasing the employer’s long-term obligations.

Skuad Manage helps teams maintain employment documentation and workforce records from a single platform. Here is what Skuad supports:

• Employment contract generation aligned with local labor laws across supported markets
• Employee agreements and employment records are maintained in one dashboard
• Contract details and key employment milestones are tracked from a single platform
• Workforce records for full-time employees and contractors are maintained in one place
• Employment documentation updates aligned with changing workforce requirements

Minimum employment terms and conditions

Statutory rules and applicable collective agreements may set minimum employment conditions in Portugal. An individual employment contract may depart from an applicable collective agreement only where it provides more favorable conditions for the employee.

Employee data protection

Employers processing applicant and employee data in Portugal must comply with the General Data Protection Regulation (GDPR). Personal data must be processed lawfully, fairly, and transparently, collected for specified purposes, and limited to what is necessary.

What are the working hours and overtime rules in Portugal?

Portugal’s normal working period generally may not exceed eight hours per day or 40 hours per week. Employees are also entitled to 11 continuous hours of rest between two consecutive working days.

Overtime and additional work

For the first 100 overtime hours in a year, employees receive an additional 25% for the first hour and 37.5% for subsequent hours on a normal working day, and 50% for hours worked on weekly rest days or public holidays. Higher premiums apply after 100 annual overtime hours. The employer must ensure that the minimum duration of rest between shifts is respected.

What is the minimum wage and compensation in Portugal?

In Portugal, the minimum wage is periodically reviewed and adjusted by the government. From January 1, 2026, the minimum monthly wage is €920 for full-time employees. Part-time employees receive a proportionate amount, while Madeira and the Azores apply separate regional minimum-wage rules.

Applicable collective agreements may establish higher minimum salaries based on the employee’s professional category and job level.

According to the Labour Code, the monthly minimum wage is due for 14 monthly payments, as all employees are entitled to the Christmas bonus (a 13th monthly payment) and to the Holiday bonus (a 14th monthly payment). Failure to pay the applicable minimum wage is considered a very serious offense and may result in a fine.

What employee benefits and social security apply in Portugal?

In addition to wages and working conditions, Portugal's employment laws include provisions for social protection, which cover aspects such as sickness, parenthood, unemployment, and disability, as well as pension benefits. Eligibility for individual benefits may depend on the employee’s contribution record and other statutory conditions.

For most employees, Social Security contributions are 23.75% of gross remuneration for the employer and 11% for the employee. Employers are responsible for withholding the employee contribution and paying the required contributions.

These contributions help fund statutory employee benefits, including sickness, parenthood, unemployment, disability, and pension protection, subject to the applicable eligibility requirements.

What vacation and paid time off entitlements apply in Portugal?

Portugal’s paid time off framework covers annual leave, public holidays, sickness absence, and family-related leave. Each entitlement follows separate eligibility, payment, and timing rules, so employers should apply the correct requirements to each type of absence.

Annual/Holiday leave

Employees in Portugal are entitled to at least 22 working days of paid annual leave per calendar year. In the year employment begins, employees are entitled to two working days of leave for each month of the contract, up to 20 working days, which may generally be taken after six full months.

Contracts lasting less than six months provide two working days of leave for each full month of the contract. Employees are also entitled to national public holidays in addition to annual leave.

What are Portugal’s public holidays in 2026?

Portugal has 13 national public holidays. In 2026, these holidays fall on the following dates:

Carnival Tuesday is not a national public holiday, although it is observed by banks and civil servants. Separate regional holidays may also apply in the Azores, Madeira, Lisbon, and Porto.

Sickness leave

Employees who are temporarily unable to work due to illness may qualify for Social Security sickness benefits, subject to medical certification, contribution requirements, and other eligibility conditions.

The payment for sick leave is dependent on the duration of absence and is generally calculated at 55% of reference income for up to 30 days, 60% from 31 to 90 days, 70% from 91 to 365 days, and 75% after 365 days. Different rates may apply in specified cases.

For employees, Social Security sickness benefit generally begins on the fourth day of incapacity, following a three-day waiting period.

Parental leave

Working parents are granted initial parental leave before and after the birth of their child according to Portuguese employment law.

The parental leave can be 120 or 150 consecutive days and may be extended by 30 days under qualifying shared-leave conditions, providing up to 180 days in total shared between the parents. Eligible parents receive a Social Security parental allowance during the leave.

Maternity leave

Pregnant mothers are entitled to up to 30 optional days before childbirth and must take 42 consecutive days, or six weeks, immediately after childbirth. These periods form part of the initial parental leave.

Paternity leave

Fathers are entitled to 28 mandatory days of leave. The first seven days must be taken immediately after birth, and the remaining 21 days must be taken within the first 42 days in periods of at least seven consecutive days. Fathers may also take seven additional optional days during the mother’s mandatory leave period.

What are the termination and severance rules in Portugal?

Before termination can be initiated in Portugal, an employer must have a legally recognized ground and follow the applicable procedure. The required notice period depends on the termination route and the employee’s length of service.

The following are grounds for termination in Portugal:

• Expiration of the employment contract
• Termination by mutual agreement, which must be recorded in a document signed by both parties
• Dismissal due to unsuitability, subject to the applicable legal conditions and procedure
• Collective dismissal due to market, structural, or technological reasons
• Dismissal due to redundancy where a specific position is eliminated for market, structural, or technological reasons
• Dismissal with just cause where serious employee misconduct makes it immediately and practically impossible to continue the employment relationship

Notice periods

For objective dismissals, including collective dismissal, redundancy, and unsuitability, employers must generally provide

• 15 days' notice for employees with less than one year of service
• 30 days for service from one to less than five years
• 60 days for service from five to less than 10 years
• 75 days for service of 10 years or more

A lawful disciplinary dismissal does not require a separate notice period after the mandatory disciplinary procedure is completed.

Employees resigning from an open-ended contract must generally provide 30 days’ written notice if they have up to two years of service and 60 days’ notice if they have more than two years of service. For fixed-term contracts, employees must generally provide 15 days’ notice where the contract lasts up to six months and 30 days’ notice where it lasts longer than six months.

During the notice period, the employee is entitled to continued remuneration and seniority rights. For objective dismissals, statutory compensation and other outstanding employment-related amounts must be made available by the end of the notice period.

Severance pay

Employees whose contracts are terminated for objective reasons, such as collective dismissal, redundancy, or unsuitability, are entitled to severance pay. However, this compensation varies depending on the duration of employment and when the relevant service was accrued.

Severance for these objective dismissals is generally 14 days of base salary and seniority allowances for each complete year of service. Earlier service periods may be subject to different legacy formulas. A lawful disciplinary dismissal for employee fault does not carry statutory severance.

Where a term employment contract expires at the employer’s initiative, the employee is generally entitled to 24 days of base salary and seniority pay for each year or proportionate part of a year worked.

At termination, the employer must provide an employment certificate stating the dates of employment and positions held. The termination must also be reported to Social Security by the 10th day of the following month.

Termination in Portugal requires a recognized legal ground, the correct procedure, service-based notice, and accurate severance calculations. Missing a step can expose an employer to disputes over the dismissal or amounts owed.

Skuad Shield helps teams stay aligned with termination and offboarding requirements across supported markets without tracking every obligation independently. Here is what Skuad supports:

• Notice period and severance calculations based on applicable statutory obligations
• Employment documentation and recordkeeping that support structured offboarding
• Probation period tracking and contract records within a single platform
• Worker classification checks that help flag potential employment risks

Book a demo to see how Skuad helps teams navigate termination and offboarding requirements in Portugal.

What discrimination and equal opportunity protections apply in Portugal?

The Portuguese Labour Code prohibits discriminatory practices and protects equal treatment throughout the employment relationship.

Employees in Portugal cannot be discriminated against on grounds such as race, gender, sexual orientation, nationality, or disability. Other protected grounds include age, gender identity, marital or family status, chronic illness, religion, political or ideological beliefs, and trade union affiliation.

The equal-treatment principle also includes equal pay for equal work or work of equal value. Employers must not use maternity, paternity, parental leave, or other parenthood protections to justify differences in remuneration.

Portuguese law prohibits moral and sexual harassment during recruitment and employment. Employers with seven or more employees must adopt a code of good conduct for preventing and combating harassment at work.

Employers must also provide reasonable accommodations for workers with disabilities or chronic illnesses, unless doing so would impose an undue financial or operational burden.

What health and safety regulations apply in Portugal?

Employers in Portugal are obliged to provide a safe and healthy work environment for their employees.

According to labor regulations, employers must manage occupational risks through appropriate risk assessments and preventive measures. They must also provide employees with relevant safety information and adequate training to prevent risks associated with their work.

Employers must also provide first-aid resources and equipment, fire-safety systems, and emergency procedures to help prevent and respond to workplace accidents.

Occupational health and safety services must be organized through an appropriate internal, external, common, or designated-person arrangement, depending on the employer’s size, activities, and risk profile.

Employers must also maintain compulsory occupational accident insurance covering employees during their professional activities and daily commute.

These health and safety responsibilities also apply to employees working remotely. Employers must arrange a health examination before a work-from-home arrangement begins and annual examinations afterward to assess the employee’s physical and psychological fitness.

Stay compliant when hiring in Portugal with Skuad

Hiring in Portugal requires businesses to navigate detailed employment obligations, from drafting compliant contracts and managing statutory contributions to administering employee benefits and following legally required termination procedures. Keeping up with these requirements while maintaining accurate payroll and workforce records can create operational complexity for companies building teams in the country.

Skuad helps businesses manage global employment processes through structured workforce support across supported markets. Skuad acts as the legal employer across 160+ countries, supporting employment contracts, statutory contributions, payroll processing in 70+ currencies, benefits administration, and termination support without requiring a local entity setup.

Book a demo to see how Skuad supports hiring aligned with Portugal’s employment requirements.

FAQs

1. What are the key employment laws in Portugal?

Employment laws in Portugal are primarily governed by the Portuguese Labour Code established through Law No. 7/2009. These rules cover employment contracts, working conditions, employee protections, Social Security obligations, leave rights, and termination procedures enforced by authorities such as the Authority for Working Conditions (ACT).

2. What information must employers provide in an employment contract in Portugal?

Employers in Portugal must provide employees with written information about key employment terms, including job duties, workplace, start date, remuneration, working hours, leave, notice requirements, and applicable collective agreements. Fixed-term contracts also require written justification and duration details under the Portuguese Labour Code.

3. How are Social Security contributions calculated for employees in Portugal?

Social Security contributions in Portugal are generally calculated based on gross remuneration. Employers typically contribute 23.75%, and employees contribute 11% of salary. Employers must withhold employee contributions and submit payments to Portuguese Social Security according to applicable registration and reporting requirements.

4. What happens if an employer violates employment laws in Portugal?

Employers violating employment laws in Portugal may face administrative offenses, financial penalties, contribution liabilities, or employee disputes. The Authority for Working Conditions (ACT) oversees compliance and may investigate issues involving employment documentation, unpaid amounts, workplace obligations, or termination procedures under Portuguese labour regulations.

5. What records must employers maintain for employees in Portugal?

Employers in Portugal must maintain employment records covering areas such as working hours, payroll information, employment documents, and statutory obligations. Proper recordkeeping helps demonstrate compliance with the Portuguese Labour Code and supports inspections by authorities, including the Authority for Working Conditions (ACT).

6. What are the notice period requirements when ending employment in Portugal?

Notice periods in Portugal depend on the termination method, contract type, and employee service period. For certain objective dismissals, employers generally provide 15 to 75 days’ notice based on seniority. Employees resigning from open-ended contracts usually provide 30 or 60 days’ notice.