Portugal
Answer ... Several laws and regulations govern labour and employment relationships. The primary sources are:
- international law, most notably EU law;
- local sources of law, such as the Constitution and the Labour Code;
- collective agreements;
- individual agreements; and
- established custom not contrary to the principle of good faith.
EU law has significantly influenced Portuguese labour law, as transposed by the Labour Code approved in 2009, amended by Law 1/2022 and recently by Law 13/2023.
Parental rights are governed by Decree-Law 91/2009; occupational accidents and sickness are governed by Law 98/2009; and occupational health and safety matters are governed by Law 102/2009. In addition, specific statutes and regulations govern particular types of employment (eg, sports work or domestic service).
In general, the Portuguese legal framework promotes employee job stability and covers most issues, such as:
- place of work;
- working hours;
- remuneration and extra pay;
- paid vacation; and
- parental leave.
Employers should be aware that Portuguese labour and employment laws and regulations favour the employee in most respects.
Portugal
Answer ... As a rule of thumb, employment agreements are freely negotiated by the employer and employee within the legal framework set out in the Labour Code.
Collective bargaining agreements are also established in Portuguese law and may cover certain professions, activities and sectors. They often set individual and detailed provisions that may deviate slightly from the general legal framework set out in the Labour Code, as long as those provisions are considered more advantageous for the employee. Collective agreements are concluded between the employer (or an employers’ association) and the trade unions, as the employee’s representatives.
The Labour Code states that each collective agreement binds the contractors (the employer or an employers’ association on one hand and the trade union on the other) and the union employees affiliated with that union.
This principle of affiliation states that a worker (or association) wishing to enter into a specific collective agreement must be affiliated with the same union that made that agreement.
However, it is not uncommon for the government to issue an extension ordinance for a specific collective bargaining agreement, rendering it applicable across a determined sector and profession – even for parties that did not initially sign it.
Portugal
Answer ... The Labour Code establishes several types of employment contracts. A common trait of Portuguese labour law is the promotion of job stability. Therefore, temporary employment contracts are legally treated as an exception and the term itself must be justified.
Employment agreements need not be in writing unless otherwise established in the law.
However, the law provides for several cases in which employment agreements or parts thereof must be executed in writing. For practical reasons, most companies will use a written document.
As an example, a written employment agreement is required in the following cases:
- the hiring of a foreign employee (exceptions apply);
- employment by several employers;
- a promissory contract of employment;
- a fixed-term employment agreement;
- a part-time employment agreement;
- an intermittent employment agreement;
- a service commission agreement;
- a teleworking agreement;
- a temporary employment contract; and
- an employment agreement for an indefinite period for temporary transfer.
The Labour Code establishes two main types of contracts: fixed-term contracts and open-ended contracts. This distinction is important because the ease of severability of the employment agreement differs substantially in fixed-term contracts as compared to open-ended contracts.
Fixed-term contracts are deemed exceptional by the law. They may be employed only when certain legal criteria are met – that is, where there is proper justification for specifying a term. Failure to conveniently justify the use of a fixed-term contract may result in its characterisation as an open-ended contract.
Contracts with a fixed term can have:
- a defined term (eg, six months); or
- an undefined term.
A fixed-term employment contract may only be concluded to satisfy temporary needs, objectively defined by the employer, and only for the period that is strictly necessary to meet those needs.
Both open and fixed-term contracts may have a probation period during which the parties may terminate the agreement at their sole discretion.
The duration of the probation period may also depend on the type of contract, as follows:
- 30 days for a fixed-term or undefined-term employment contract conducted for six months or more or expected to last more than six months; and
- 15 days for a fixed-term or undefined-term employment contract conducted for less than six months or expected to last less than six months.
The probation periods for open-ended contracts will be longer and may vary depending on the responsibility and technicality of the activity being developed by the employee:
- The general probation period for workers with no type of specific qualification or significant degree of responsibility is 90 days.
- Employees seeking their first job and in long-term unemployment or employees holding positions of significant technical complexity (or a significant degree of responsibility) requiring particular qualifications have a 180-day probation period, which can be excluded if the last fixed-term contract with a different employer lasted for 90 days or more.
- For management positions, the probation period is 240 days.