Portugal's labor laws are designed to protect employees and ensure fair treatment in the workplace. These laws cover a wide range of areas, including employment contracts, working hours, compensation, termination, and workplace safety. Understanding these rights and protections is crucial for both employers and employees to maintain a compliant and equitable work environment.
Portuguese labor law is primarily governed by the Labor Code (Código do Trabalho), which is regularly updated to reflect evolving social and economic conditions. The Authority for Working Conditions (Autoridade para as Condições do Trabalho - ACT) is the main body responsible for enforcing labor laws and ensuring compliance.
Termination Rights and Procedures
Termination of employment in Portugal is regulated to protect employees from unfair dismissal. Employers must have a valid reason for terminating an employment contract, such as:
- Just cause (e.g., serious misconduct by the employee)
- Objective reasons (e.g., economic difficulties of the company or unsuitability of the employee for the job)
- Collective redundancy (layoffs)
Notice Periods:
The required notice period depends on the length of service:
| Length of Service | Notice Period |
|---|---|
| Up to 6 months | 15 days |
| 6 months to 2 years | 30 days |
| More than 2 years | 60 days |
Severance Pay:
Employees are generally entitled to severance pay if their employment is terminated without just cause. The amount of severance pay depends on the employee's length of service and the reason for termination. As of 2025, the standard calculation is typically around 18 days of base salary and seniority compensation for each full year of service.
Procedures:
Employers must follow specific procedures when terminating an employee, including:
- Providing written notice of termination
- Stating the reason for termination
- Allowing the employee to respond to the reasons for termination
Anti-Discrimination Laws and Enforcement
Portugal has strong anti-discrimination laws to protect employees from unfair treatment based on certain characteristics.
Protected Characteristics:
The law prohibits discrimination based on:
- Race
- Color
- Nationality
- Ethnic origin
- Religion
- Sex
- Sexual orientation
- Gender identity
- Age
- Disability
- Political or ideological beliefs
- Trade union membership
Enforcement:
The Commission for Equality in Labour and Employment (CITE) is responsible for promoting equality and combating discrimination in the workplace. Employees who believe they have been discriminated against can file a complaint with CITE or take legal action in court. Employers found guilty of discrimination may face fines and other penalties.
Working Conditions Standards and Regulations
Portuguese labor law sets standards for working conditions to ensure fair treatment and reasonable work-life balance.
Working Hours:
- The standard working week is 40 hours.
- Daily working hours should not exceed 8 hours.
- Overtime is allowed but is subject to limitations and must be compensated with increased pay or time off in lieu.
Rest Periods:
- Employees are entitled to a daily rest period of at least one hour.
- Employees are entitled to a weekly rest period of at least one day, typically on Sunday.
Paid Leave:
- Employees are entitled to a minimum of 22 days of paid annual leave.
- Employees are also entitled to paid leave for public holidays, marriage, bereavement, and other special occasions.
Minimum Wage:
The national minimum wage is reviewed and updated annually. As of 2025, the minimum wage is set to ensure a basic standard of living for workers.
Workplace Health and Safety Requirements
Employers in Portugal have a legal duty to ensure the health and safety of their employees.
Key Requirements:
- Conducting risk assessments to identify potential hazards
- Implementing preventive measures to minimize risks
- Providing employees with adequate training and information on health and safety
- Providing personal protective equipment (PPE) where necessary
- Ensuring access to medical services and first aid
- Establishing health and safety committees in companies with a certain number of employees
Enforcement:
The Authority for Working Conditions (ACT) is responsible for inspecting workplaces and enforcing health and safety regulations. Employers who fail to comply with these regulations may face fines and other penalties.
Dispute Resolution Mechanisms for Workplace Issues
Portugal offers several mechanisms for resolving workplace disputes.
Internal Grievance Procedures:
Many companies have internal grievance procedures that employees can use to raise concerns and seek resolution.
Mediation and Conciliation:
Mediation and conciliation services are available to help employers and employees reach a mutually agreeable solution.
Labor Courts:
Employees can file a lawsuit in labor court to resolve disputes related to employment contracts, termination, discrimination, and other workplace issues.
Arbitration:
In some cases, employers and employees may agree to resolve disputes through arbitration, where a neutral third party makes a binding decision.
