Employment contracts Portugal

What should an employment contract in Portugal include? 

An employment contract in Portugal should include the following essential information:

• The company and employee’s names and contact details.
• Salary, hourly rate, or other form of payment.
• The job title and a detailed description of the employee’s obligations.
• A description of the employee’s work schedule, including the days of the week and the precise hours they must be at the office.
• The terms under which either party may terminate the employment.
• Confidentiality and non-disclosure covenants to protect the business’s interests.

Prior to signing an employment contract, all parties should make sure they have thoroughly read, understood, and agreed to all of the terms and conditions.

What types of employment contracts exist in Portugal?

The most typical types of employment contracts in Portugal are:

1. Employee contract

The different types of employment contracts in Portugal are as follows:

• Permanent contracts: This is the most typical kind of work contract in Portugal. It is a long-term agreement with no set conclusion date. Employees benefit from its stability and security, and under Portuguese labor legislation, it cannot be terminated without a good reason.
• Fixed-term contract: This type of contract is typical for work only needed for a limited time, such as a single season or project. The duration of the contract must be agreed upon in writing, and upon the occurrence of the set termination date, the contract will stop automatically. The maximum duration of this contract is two years, with two one-year extensions possible.

2. Temporary contract

Businesses commonly use temporary contracts to complete a specific task or fill a vacant position. A temporary contract functions similarly to an interim contract. Thus, under this contract, there are three parties involved: the business, the worker, and the temp agency. The temp agency is responsible for the contract and the payment to the worker. This contract could be renewed as many times as is necessary.

3. Intermittent contract

Companies employ this contract when carrying out work that may be continuous or intermittent. The employee must work for at least four consecutive months out of each year’s six-month employment period. In accordance with the terms of the agreement, employees will be available on an “as-needed” basis to undertake work for their employers. A worker’s availability for employment during certain periods is voluntary and not required.

How to hire employees in Portugal?

Workers in Portugal are guaranteed not just the statutory minimum wage but also any further compensation to which they are eligible. In addition, companies must follow all applicable rules and regulations and current employment laws and guidelines. 

To legally operate a business in Portugal, you must first register your firm with the government and obtain a tax identification number. 

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