Employee Rights in Portugal — Labour Law Guide

Employment Contracts

Portuguese employment law, governed primarily by the Código do Trabalho (Labour Code), recognizes several types of employment contracts. Understanding your contract type is critical because it determines your rights, notice periods, and protections.

Main Contract Types

• Contrato sem termo (permanent/open-ended contract) — No fixed end date. This is the default and provides the strongest employee protections, including full protection from unfair dismissal.
• Contrato a termo certo (fixed-term contract) — Has a defined start and end date. It can be renewed a limited number of times and for a maximum total duration as set by the Labour Code. After the maximum renewals, the contract either ends or converts to permanent.
• Contrato a termo incerto (uncertain-term contract) — Used when the end date depends on the completion of a specific task or project. The contract ends when the task concludes, but the employer must give advance notice.
• Contrato de trabalho temporário (temporary agency contract) — You are employed by a temporary work agency and placed at a client company. The agency is your legal employer.
• Contrato de trabalho a tempo parcial (part-time contract) — Same rights as full-time workers, applied proportionally to your working hours.

What Your Contract Must Include

• Full names and identification of employee and employer
• Job title and description of duties
• Workplace location
• Working hours and schedule
• Start date and contract type (with end date for fixed-term contracts)
• Base salary and any additional allowances
• Trial period duration (if applicable)
• Applicable collective bargaining agreement (if any)

Trial Periods

Most employment contracts include a trial period (período experimental) during which either the employer or the employee can terminate the contract without notice and without compensation. The duration of the trial period depends on the contract type and role:

• Permanent contracts (general employees) — 90 days
• Permanent contracts (complex technical roles, senior management, or positions of trust) — 180 days
• Permanent contracts (executives and senior directors) — 240 days
• Fixed-term contracts of 6 months or more — 30 days
• Fixed-term contracts under 6 months — 15 days

During the trial period, no prior notice is required for termination if the period has lasted less than 60 days. For longer trial periods, advance notice is required from the employer (typically 7 to 15 days depending on time served). These durations are set by the Labour Code and may be modified by collective bargaining agreements — check your contract.

Working Hours & Overtime

The standard working week in Portugal is 40 hours, with a daily maximum of 8 hours. These limits are set by the Labour Code and may be adjusted by collective bargaining agreements in certain sectors.

Overtime Rules

Overtime (trabalho suplementar) is work performed beyond the normal working hours. Key rules include:

• Overtime limits — There are annual limits on overtime hours per employee, as defined in the Labour Code. Overtime cannot be imposed as a regular arrangement.
• Overtime compensation — Overtime must be compensated at a premium rate above normal pay. The Labour Code sets minimum premium percentages for the first hour, subsequent hours, and work on rest days or public holidays. Check the current rates on the ACT website as these are subject to legislative updates.
• Rest between shifts — Employees are entitled to a minimum of 11 consecutive hours of rest between the end of one working day and the start of the next.
• Weekly rest — Employees are entitled to at least one full day of rest per week (typically Sunday).

Minimum Wage

Portugal has a national minimum wage (salário mínimo nacional / retribuição mínima mensal garantida — RMMG) that is updated annually by the government, typically taking effect in January. The minimum wage applies to all workers, regardless of nationality, and is paid 14 times per year (12 monthly payments plus holiday and Christmas subsidies).

Check the current minimum wage on ePortugal or the ACT website, as the amount changes each year.

Paid Holidays & Public Holidays

Employees in Portugal are entitled to a minimum of 22 working days of paid annual leave per year. This is a legal minimum — your contract or collective agreement may provide more.

Key Rules on Annual Leave

• Leave accrues on 1 January each year and refers to the previous year of service
• In your first year of employment, you are entitled to two working days of leave per month of service, up to a maximum of 20 days, usable after six months of service
• Your employer cannot deny your right to take leave, though the timing must be agreed between employer and employee
• Unused leave cannot simply be replaced by payment — you have the right to actually take the time off, except in specific circumstances defined by law
• The employer must allow at least 10 consecutive days of leave to be taken as a single block

Public Holidays

Portugal has mandatory national public holidays (including New Year, Carnival Tuesday, Good Friday, Easter, 25 April, 1 May, Corpus Christi, 10 June, 15 August, 5 October, 1 November, 1 December, 8 December, and 25 December) as well as a local municipal holiday that varies by city. Work on public holidays is voluntary (except in essential services) and must be compensated with premium pay or compensatory rest.

Holiday & Christmas Subsidies (13th & 14th Month)

One of the most distinctive features of Portuguese labour law is the mandatory payment of two additional salary payments each year:

• Subsídio de férias (holiday subsidy) — Equal to one month’s base salary, paid before the main holiday period, typically in June or July.
• Subsídio de Natal (Christmas subsidy) — Equal to one month’s base salary, paid by 15 December.

These are mandatory legal entitlements, not discretionary bonuses. If you work less than a full year, the subsidies are paid proportionally to the months worked. Employers may also arrange to pay these in monthly instalments (duodécimos) instead of two lump sums, but only with the employee’s agreement.

Sick Leave

If you fall ill and cannot work, Portuguese law provides for sick leave (baixa médica) with financial support from Segurança Social (social security), not from your employer.

How Sick Leave Works

1. Get a medical certificate — Visit your doctor (médico de família at your local health centre, or hospital) to obtain a certificate of temporary incapacity (certificado de incapacidade temporária — CIT). This is issued electronically through the SNS system.
2. Waiting period — The first three days of sick leave are a waiting period (período de espera). You receive no pay from Segurança Social during these days. Some collective agreements or company policies may cover this gap.
3. Sick pay from Segurança Social — From the fourth day, Segurança Social pays a percentage of your reference daily salary. The percentage increases with the duration of the sick leave. Check the current percentages on the Segurança Social website.
4. Eligibility — To receive sick pay, you must have at least six months of social security contributions (with at least 12 contribution days in the four months before the sick leave).

Parental Leave

Portugal has one of the most generous parental leave systems in Europe. The rules are detailed in the Labour Code and administered through Segurança Social.

Key Entitlements

• Initial parental leave — Parents are entitled to an initial parental leave period after the birth of a child. The total duration and how it is shared between parents affects the compensation rate. Check the current durations and payment rates on the Segurança Social website.
• Mandatory mother’s leave — The mother must take a mandatory period of leave after birth (currently six weeks). The remainder of the initial parental leave can be shared between parents.
• Father’s obligatory leave — Fathers have a mandatory leave period that must be taken in the first weeks after birth. This has been progressively increased by the Portuguese government to promote shared parenting.
• Extended parental leave — After the initial period, either parent may take additional leave, though at a reduced compensation rate.
• Breastfeeding/nursing leave — Working mothers who are breastfeeding are entitled to time off during the working day for nursing, without loss of pay.

Parental leave compensation is paid by Segurança Social, not by the employer. The exact amounts and durations are updated periodically — always check the Segurança Social website for current rules.

Protection from Unfair Dismissal

Portuguese labour law strongly protects employees from arbitrary dismissal. Key principles include:

• No dismissal without just cause — Employers cannot terminate a permanent contract without demonstrating just cause (justa causa). Just cause includes serious disciplinary violations by the employee (such as repeated unjustified absences, insubordination, or theft).
• Collective dismissal — Employers may undertake collective dismissals for economic, structural, or technological reasons, but must follow strict procedures including prior consultation with employee representatives and notification to the Ministry of Labour.
• Extinction of job position — An employer can eliminate a position for structural reasons, but must follow legal procedures and cannot simply use this as a pretext to dismiss an individual employee.
• Unsuitability dismissal — In very specific circumstances, an employer may dismiss an employee who cannot adapt to changes in their role, but only after providing training and following legal procedures.
• Right to challenge — If you believe you were unfairly dismissed, you can challenge the dismissal in the labour courts (tribunais do trabalho). If the court finds the dismissal was unlawful, you may be entitled to reinstatement or compensation.

Severance Pay

When an employment contract ends through employer-initiated termination (not resignation), the employee is generally entitled to severance compensation (compensação). The amount depends on the type of dismissal and your length of service.

• Collective dismissal, job extinction, or unsuitability — The employee is entitled to compensation based on their base salary and length of service. The Labour Code sets the formula — check with ACT or a lawyer for the current calculation method.
• Fixed-term contract expiry — When a fixed-term contract expires and is not renewed, the employee is entitled to compensation proportional to their service period.
• Unfair dismissal — If a court finds the dismissal was unlawful, the employee may be entitled to reinstatement or higher compensation.

Severance pay calculations have been changed multiple times by legislation. For contracts started in different periods, different formulas may apply. Consult ACT or a labour lawyer for your specific situation.

Workers’ Compensation

All employers in Portugal are legally required to have work accident insurance (seguro de acidentes de trabalho) that covers their employees. This insurance covers:

• Medical treatment and rehabilitation for work-related injuries
• Compensation for temporary incapacity (lost wages during recovery)
• Permanent disability pension for lasting impairments
• Death benefits for the family in fatal work accidents
• Commuting accidents (injuries during the normal journey between home and workplace)

If you suffer a work accident, report it to your employer immediately. The employer must report it to their insurance company and to ACT. If you believe your employer does not have proper insurance or is not cooperating after an accident, contact ACT.

Discrimination Protections

Portuguese labour law prohibits discrimination in employment on the basis of:

• Ancestry, age, sex, sexual orientation, or gender identity
• Marital or family status
• Genetic heritage, health condition, or disability
• Religious or political beliefs
• Ethnic or racial origin
• Nationality or territory of origin
• Language
• Trade union membership

Discrimination protections apply to hiring, working conditions, promotion, training, and dismissal. If you experience workplace discrimination, you can file a complaint with:

• ACT — For general labour rights violations
• CITE (Comissão para a Igualdade no Trabalho e no Emprego) — Specifically for gender equality and parental rights at work
• CICDR (Comissão para a Igualdade e Contra a Discriminação Racial) — For racial or ethnic discrimination

Trade Unions

Employees in Portugal have the right to join trade unions (sindicatos) and participate in collective bargaining. This right is protected by the Portuguese Constitution and the Labour Code.

• Freedom of association — You cannot be penalized, dismissed, or discriminated against for joining or participating in union activities.
• Collective bargaining agreements — Many sectors in Portugal have collective agreements (contratos coletivos de trabalho) negotiated between unions and employer associations. These agreements often provide better conditions than the Labour Code minimum (higher wages, more leave days, better overtime rates).
• Right to strike — Workers have the constitutional right to strike. Minimum service requirements apply to essential sectors.
• Major union confederations — CGTP-IN (Confederação Geral dos Trabalhadores Portugueses) and UGT (União Geral de Trabalhadores) are Portugal’s two main union confederations.

How to File a Complaint with ACT

The ACT (Autoridade para as Condições do Trabalho) is Portugal’s labour inspection authority. If your employer violates your rights, ACT is your primary recourse.

What ACT Investigates

• Unpaid or late wages, including holiday and Christmas subsidies
• Working hours exceeding legal limits
• Lack of a written contract when one is required
• Unsafe working conditions
• Undeclared employment (worker not registered with social security)
• Unfair dismissal procedures
• Discrimination and harassment

How to File

1. Online — Submit a complaint through the ACT website. This is the fastest method.
2. In person — Visit your nearest ACT office (delegações regionais). Bring any relevant documents (contract, pay slips, correspondence).
3. By phone — Call ACT’s helpline for guidance on how to proceed.

Complaints can be filed anonymously. ACT inspectors will investigate and can impose fines on employers found in violation. For serious disputes (such as unfair dismissal or large unpaid amounts), you may also need to take the matter to the labour courts. Free legal assistance may be available through the access-to-law system (acesso ao direito) — ask at your local court or contact a trade union.

Common Questions

How many paid holidays do employees get in Portugal?

Employees are entitled to a minimum of 22 working days of paid annual leave per year, in addition to mandatory public holidays (national and local). In your first year of employment, you are entitled to two working days per month of service, up to a maximum of 20 days, usable after six months of service.

What are the holiday and Christmas subsidies (13th and 14th month)?

Portuguese law requires employers to pay two additional monthly salary payments each year: the holiday subsidy (subsídio de férias), typically paid in June or July, and the Christmas subsidy (subsídio de Natal), paid by 15 December. Each equals one month’s base salary. These are mandatory — they are not bonuses and cannot be withheld.

How does sick leave work in Portugal?

You need a medical certificate from your doctor. The first three days are a waiting period with no pay from Segurança Social. From the fourth day, Segurança Social pays a percentage of your reference salary. The percentage increases with the duration of the absence. You must have sufficient social security contributions to qualify.

Can my employer fire me without cause in Portugal?

No. Portuguese law prohibits dismissal without just cause for permanent contracts. An employer can only dismiss for serious disciplinary reasons, through collective dismissal procedures, or due to job position extinction — all requiring specific legal procedures. Unfair dismissal can be challenged in the labour courts.

How do I file a complaint about my employer with ACT?

You can file online at www.act.gov.pt, by phone, or in person at a local ACT office. Complaints can be anonymous. ACT investigates violations including unpaid wages, excessive hours, unsafe conditions, and contract irregularities. You can also seek free legal advice through trade unions or the access-to-law system.