Portugal
Portugal, known for its stunning landscapes, rich history, and warm hospitality, offers great opportunities for businesses looking to expand internationally. TCWGlobal simplifies the process of hiring in Portugal, offering comprehensive solutions for building your contingent workforce.
With a population of over 10 million people, Portugal boasts a skilled and educated workforce. From the historic streets of Lisbon to the picturesque beaches of the Algarve, the country offers a unique blend of culture and natural beauty.
When expanding your business into Portugal, compliance with local regulations is essential. TCWGlobal, as your employer of record, ensures that your contingent workforce is fully compliant, reducing risks for your organization.
In addition to compliance, TCWGlobal provides personalized services and benefits for your contingent workforce. Whether you require assistance with payrolling management, benefits administration, or any other aspect of HR, our team is committed to meeting your needs.
By partnering with TCWGlobal, you can confidently expand your business into Portugal, knowing that your contingent workforce is in capable hands. Our expertise and comprehensive solutions make us the ideal partner for businesses seeking to establish a presence in this dynamic market.
Fixed term contracts are permitted but must be established for a predetermined period and align with a temporary need under specific legal conditions and the justification must be in writing. The overall duration, including renewals, should not exceed two years. Renewal of fixed term contracts are restricted to a maximum of three times, and the total durations of the renewals cannot exceed the initial term. In fixed-term contracts, the probationary period is 30 days if the contract's duration is more than six months or 15 days if the contract's duration is less than six months.
In Portugal, Workers recognize 13 public holidays. Workers are entitled to a paid day off in recognition of public holidays. Workers that work on a public holiday are entitled to 150% of wages or a compensatory half day of rest, whichever is agreed upon.
In the year of hire, vacation is accrued at rate of two days per month up to a maximum of 20 days and can generally be taken after 6 months of service. Subsequent to that, Workers are entitled to 22 workdays of vacation annually. Vacation should be taken in the calendar year but can be carried over until April 30th of the next year by agreement.
There are no subcategories of workers in Portugal.
The standard maximum probationary period for most Workers is 90 days. The probationary period can be 180 days for Workers in positions of technical complexity or special trust and up to 240 days for senior management. Either party can terminate the contract without providing notice during a probationary period of less than 60 days. However, if the probationary period has lasted longer than 60 days, a minimum of 7 days’ notice is required. If the probationary period exceeds 120 days, a minimum notice period of 30 days is required.
Eligible Workers are entitled to up to 1,095 days of sick leave, payable by the government (either directly or via the employer) at 55% to 75% of ordinary wages.
A standard workweek is 40 hours per week, eight hours per day. The average working time, including overtime, cannot exceed 48 hours per week.
Overtime is compensable at various premium rates depending on when it occurs (25% first hour, 37.5% following hours, 50% on rest days and holidays). Overtime is capped at various annual limits depending on the size of the business and whether the Worker is full-time or part-time. Overtime must be justified by reasons set forth in Portugal's Labor Code.
All Workers are entitled to a “Holiday Allowance” equal to one month’s pay which must be before the Worker’s annual leave (typically in June), and a "Christmas Bonus" equal to one month's pay, which must be paid by December 15 each year. Monthly payments are possible if requested and agreed upon in writing.
Just cause is required for termination in Portugal and formal procedures must be followed. The notice period a Worker under an indefinite contract is entitled to varies depending on years of service as outlined below: · 15 days’ notice for Workers with less than one year of service · 30 days’ notice for Workers with one to five years of service · 60 days' notice for Workers with five to ten years of service · 75 days’ notice for Workers with more than ten years of service
Workers are required to provide at least 30 days’ notice if they choose to resign within their first two years of service and 60 days’ notice if they resign after two years of service. Notice must be given in writing. The length of notice varies based on years of service, contract specifics, and anything additional set forth in a Collective Bargaining Agreement.
Portugal has a 13th and 14th salary payments. These are paid out to the worker in June and December each year. Professional Training - During the first 3 years, Workers are entitled to 40 hours of Professional Training. If those hours are not used within 3 years, the entitlement will be converted to a payout. Workers who are on a fixed contract that exceeds three months will receive a minimum number of hours in proportion to the duration of the contract in that year. Upon termination the Worker is entitled to receive payment for unused hours.
TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.
When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.
