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Portugal

How to Hire Workers in Portugal | Employer of Record (EOR) in Portugal

Navigating the labor laws and regulations of Portugal is made easy with our EOR services. We handle all aspects of local employment, ensuring compliance and smooth operations for your business. From payroll to benefits, our team provides comprehensive support tailored to meet the unique needs of your business in Portugal. Expand into the Portuguese market with confidence, knowing that you have a reliable partner managing your international employment needs.

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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.

Worker Classifications

There are no subcategories of workers in Portugal. 

Fixed-Term Contracts

Fixed-term contracts are allowed in limited cases. When permitted, they cannot be renewed more than two times and cannot be longer than two years in total. Probationary periods are permitted in fixed-term contracts, but there are limits in duration based on the length of the fixed-term contract.

Probationary Periods

The maximum probationary period for most Workers is 90 days. During the probationary period, the contract may be ended without justification or notice for the first 60 days of the probationary period, after that notice is required.

Holidays

In Portugal, Workers recognize up to 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 and a compensatory day of rest, at the discretion of the employer.Public Holidays 2024:1 January - New Year's Day25 February - Carnival12 April - Good Friday25 April - Freedom Day1 May - Labor Day10 June - Portugal Day15 August - Assumption of Mary5 October - Republic Day25 December - Christmas Day

Vacation

In the first year of employment, vacation is accrued at rate of two days per month up to a maximum of 20 days. Subsequent to that, Workers are entitled to 22 workdays of vacation annually. The first 20 days of vacation time cannot be cashed out, even at a Worker’s request. Except under certain circumstances, all accrued vacation expires as of January 1 of the subsequent year. If the worker starts their contract during the first half of the year. 

Sick Leave

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.

Working Hours

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

Overtime is compensable at various premium rates depending on when it occurs. Overtime is capped at various limits depending upon the size of the employer.

Mandatory Bonuses

All Workers are entitled to a "Holiday Bonus" equal to one month's pay which must be taken before the Worker's annual leave (typically in June), and "Christmas Bonus" equal to one month's pay, which must be paid by December 15 each year.

Termination

Except in cases of serious misconduct, termination requires a good cause, severance equal to 20 days’ of pay for each completed year of service subject to statutory caps, and in some cases notice.

Resignation

Workers are required to provide at least 30 days notice if they choose to resign. This length of notice will vary based on years of service, contract specifics and if anything additional is outlined in a Collective Bargaining Agreement. 

Unique Country Nuances

Portugal has a 13th and 14th salary payments. These are paid out to the worker in June and December each year. 

Mandatory Employer Costs

Statutory Maternity/Paternity pay, Temporary Sickness/Incapacity, Long Term Sickness/Disability Benefit, Unemployment benefit, pension benefit

How an EOR Can Help You Win Fast

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.

Common Pitfalls in Choosing an EOR

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.