Portugal (PT)
Portugal is a parliamentary republic on the southwestern tip of the Iberian Peninsula, bordered by Spain to the north and east and the Atlantic Ocean to the west — a nation of fado music, Age of Discovery seafaring heritage, golden beaches from the Algarve to the Silver Coast, world-famous port wine and Douro Valley vineyards, and a warm, welcoming culture that has made it one of Europe's most beloved expat destinations.
Employment Rights
Sick leave, dismissal protection and red flags in Portugal.
Portugal's employment law is governed by the Código do Trabalho (CT, Lei 7/2009 with many amendments), a comprehensive labour code that provides strong employee protections. Workers are also protected by Acordos Colectivos de Trabalho (collective agreements) sector by sector — many improve on the statutory minimums significantly. Key institutions: ACT (Autoridade para as Condições do Trabalho — labour inspectorate), CITE (Comissão para a Igualdade no Trabalho e no Emprego — equality), and IEFP (employment and training). Trade unions (CGTP and UGT confederations) are relevant in manufacturing, public sector, and transport.
Sick leave
Rules: Notify employer on the first day of absence. Obtain an atestado médico (medical certificate) from your GP or any doctor. Since 2023, electronic sick notes (certificados médicos de incapacidade temporária — CMIT) are sent directly from the SNS to Segurança Social. Atestado must be submitted to employer within 5 working days of first absence day.
Doctor note: Required from day 1 for absences affecting pay or benefits. For absences up to 2 days: many collective agreements allow self-certification up to 2 times per year. From day 3+: atestado médico always required.
Employer pay: Days 1–3: employer pays full salary (or per collective agreement). Day 4–30: Segurança Social pays 55% of base remuneration. Day 31–90: 60%. Day 91–365: 70%. After 365 days of continuous sickness: evaluated for Incapacidade Permanente.
Long-term: After 1,095 days (3 years cumulative) of sickness benefit, evaluation for Incapacidade Permanente by Segurança Social. Pensão de Invalidez (invalidity pension) available for permanent incapacity.
Dismissal protection
Law: Código do Trabalho Art. 340–395. Three main types: (1) Despedimento com justa causa (for serious misconduct — 0 compensation if upheld); (2) Despedimento por extinção de posto de trabalho (job position elimination due to economic/organisational reasons — 12 days pay per year of service, cap 12× monthly reference wage); (3) Despedimento colectivo (collective dismissal for structural reasons — 14 days/year, same cap). Compensation in 2026 is 14 days/year (CT amendment) though a fund system (FCT/FGCT) pre-funds part. Unjust dismissal: reinstatement or 30–45 days pay per year.
Deadline to sue: 1 year from effective dismissal date to challenge in labour court (Tribunal do Trabalho). Prior conciliation (Mediação Laboral/DGERT) is encouraged but not mandatory. CRITICAL: do not miss the 1-year deadline — it is a statute of limitations, not a caducidade.
Probation
Período experimental (trial period): 90 days standard. 180 days for managerial, supervisory roles, and new entrants to labour market. 240 days for those in senior or very high-responsibility positions. During the period experimental, either party may terminate freely — no compensation due. However, if the employer terminates after 60 days (during an extended trial), compensation of 20 days pay per year is due for each fraction over 60 days.
Notice periods
Employer notice: 15 days (< 1 year service), 30 days (1–5 years), 60 days (5–10 years), 75 days (> 10 years). Employee notice: 15 days (< 2 years service), 30 days (2+ years), or per collective agreement. Indemnização de substituição (payment in lieu of notice) allowed.
Working time
Max hours: Normal working time: 40 hours per week, 8 hours per day (CT Art. 203). Banco de horas (hour bank) arrangements allowed by collective agreement for flexible distribution up to 12h/day with averaging period. 2024 legislation proposal to reduce to 38 hours/week is under discussion but not in force in 2026.
Min rest: 11 consecutive hours daily rest (CT Art. 214). Weekly rest: 1 full day (domingo — Sunday mandatory rest day) + 1 or more additional half days depending on work schedule. Minimum break: 1 hour after 5 consecutive hours of work.
Overtime: Horas extraordinárias: first 1 hour +25%; subsequent hours same day +37.5%; rest day or holiday +50%. Maximum 150–200 hours/year extra per worker depending on collective agreement. Employees must consent to overtime unless urgent necessity. ACT enforces time records (registo de horas).
Vacation
Minimum 22 working days paid annual leave (férias) per full year (CT Art. 238), with 3 additional days for near-perfect attendance record (common in collective agreements = 25 days total). Unused vacation must be taken by 30 April of the following year, or by 30 June if agreed. Subsídio de férias (holiday subsidy): one month's base salary paid in June. Subsídio de Natal (Christmas subsidy): one month's base salary paid in November. These are mandatory components of the 14-month salary structure.
Anti-discrimination
Lei 93/2017 (Igualdade e Não Discriminação no Trabalho). Protected characteristics: race, colour, nationality, ethnic origin, territory of origin, language, gender, sexual orientation, gender identity, age, disability, chronic illness, religion, political opinion, union membership, family status. CITE (Comissão para a Igualdade no Trabalho e no Emprego) receives complaints; ACT inspects workplaces. Companies with 50+ workers must have Planos de Igualdade (equality plans). Gender pay gap reporting mandatory for companies with 50+ workers since 2021.
Contract red flags
- !Missing IRS (income tax) or Segurança Social deductions on your payslip — illegal; employer is responsible for withholding.
- !"Falso recibo verde" arrangement: working as a Recibo Verde freelancer for a single employer with fixed hours and controlled working conditions — constitutes false self-employment (falso trabalhador independente). ACT investigates and can recognise as employment contract.
- !Missing subsídio de férias or subsídio de Natal from the annual pay package — mandatory by law unless an annual gross equivalent is agreed in writing.
- !Fixed-term contract (a termo certo) without a valid legal reason stated (CT Art. 140: seasonal, temporarily increased activity, replacement) — void terms convert to indefinite contracts.
- !Chaining multiple fixed-term contracts for the same employer beyond the legal limit (maximum 3 renewals, maximum 2-year total) — converts to permanent contract by law.
- !Salary below salário mínimo nacional (€920/month gross from 1 January 2026; paid × 14 payments per year including subsídio de férias and subsídio de Natal) — illegal.
- !Trial period longer than legally permitted (240 days maximum for any role) — excess days are void.
- !Non-compete clause (cláusula de não concorrência) without explicit financial compensation (minimum 50% of salary during the restricted period) — void under CT Art. 136.
Employment Rights
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