Employee Rights in Portugal

Generally, Portuguese employment contracts do not need to be in writing. However, for some types of arrangements (fixed-term, part-time, and secondment contracts, as well as agreements with foreign employees), the law requires a written document.

Within 60 days from the start of the employment, the employer has to inform the employee in writing about working conditions that include:

• employer’s identification
• workplace
• job position
• terms and relevant grounds
• the date that the contract starts and becomes effective
• annual leave
• notice period
• hours of work
• employee’s pay
• any collective bargaining instruments
• employer’s accident insurance policy and employee’s compensation fund

Restrictive covenants are not enforceable under Portuguese labour law, and non-compete agreements or clauses are enforceable only if the employee’s activity is likely to cause harm to the employer. Payment of a non-competition compensation amount should be agreed in advance and complied with.

Employees are entitled to receive a monthly payslip from their employer (either hard copy or online) with details of their remuneration. The employer must keep payroll reports for at least five years and may be audited.

Employees in Portugal have the right to work in healthy, safe and hygienic conditions, which must be guaranteed by the employer. The employer must comply with the preventative principles, guidelines and rules relating to safety, hygiene and health at work.

Employers are obliged to ensure:

• Measures preventing any technical work accidents from happening
• Employee training, information, and consultations on workplace safety
• Internal or external health and safety services

Each employee is entitled to work accident risk insurance. The employer sets that up and informs the relevant regional service of the Authority for Working Conditions (ACT- Autoridade para as Condições do Trabalho).

The employer must implement appropriate company health and safety (H&S) activity at work. This includes organising and keeping appropriate H&S services and other preventive measures, like ensuring risk exposure assessments and the performance of tests and other actions on occupational risks and health monitoring.

The employer must have an internal structure that provides for:

• First aid
• Fire fighting
• The evacuation of employees in situations of grave and imminent danger

Employees working from home have the same right to a healthy and safe environment, which their employer should provide. Employers are responsible for the installation, maintenance, and costs associated with home offices, such as workstations and tools.

Employees should make sure they work from an appropriate, safe and comfortable workstation that includes an ergonomic chair, footrest, elevated computer screen to meet the eyes, suitable light avoiding glares, and a room exit without obstructions and cables, which are covered.

Regardless if working from home or the office, employees are entitled to regular health and eye exams, as well as appropriate equipment to protect their eyes.

Pregnant employees who have recently given birth and/or are breastfeeding are entitled to:

• Exclusive initial parental leave of the mother paid at 100% and compulsory six weeks leave after childbirth. The mother may take up to 30 days of initial parental leave before the birth
• Leave at clinical risk for the pregnant employee or the unborn child for as long as, on medical prescription, it is deemed necessary to prevent the risk without prejudice to the initial parental leave
• Leave for interruption of pregnancy of between 14 and 30 days on presentation of a medical certificate
• Time off work for antenatal consultations and preparation for childbirth for as long and as many times as necessary
• Time off work for pregnant employees, employees who have recently given birth or employees who are breastfeeding, for reasons of protecting their safety and health, where the employer cannot assign them any other duties, the daily amount of the allowances being equal to 65 % of the reference salary
• Daily dispensation for breastfeeding
• Exemption from overtime
• Exemption from working hours organised according to a system of adaptability, time banks or concentrated working hours
• Exemption from working night shifts

The daily amount of the allowances is 65% of the reference salary if the employer is unable to assign the employee other tasks. An employee who has been relieved of night work must be granted a compatible daytime work schedule whenever possible. If that is not possible, they must be relieved from work.

Violation of the provisions on parenthood constitutes a misdemeanour with the Labour Conditions Authority (ACT) acting in the private sector and the Ministries’ Inspections in the public sector and cumulatively the General Inspection of Finance (IGF).

Employees who are terminated due to collective dismissal or redundancy are entitled to severance. The amount an employee will be paid depends on their seniority within the company.

Since 2011, severance entitlements have been reduced from 30 to 20 days of pay per year of service. The current severance maximum in place since 2013 is either 12 times the employee salary and seniority pay or 240 times the statutory minimum wage.

In the case of a fixed-term or temporary contract, this is increased to 18 times the employee’s salary and seniority pay. This means that when calculating severance, whether the employment existed before 2013 or 2011, respectively, will impact the amount. The compensation can not exceed 20 times the minimum national monthly wage (€820 as of 2025).

The Compensation Fund (Fundo de Compensação do Trabalho) and the Guarantee Fund for Work Compensation (Fundo de Garantia de Compensação do Trabalho – FGCT) can be used to finance severance payments partly and is applicable in situations of both individual and collective dismissals.

Employees have the right to be absent from work for the following reasons:

• Marriage: 15 consecutive days off
• Family death:
  • 20 days: children, stepchildren and spouse, person in partnership or in common economy
  • 5 days: mother, father and in-laws
  • 2 days: grandparents, great-grandparents, grandchildren and great-grandchildren
• Union functions or worker’s commission: from 5 hours to 4 days
• Parental assistance: 30 days a year for a child accident or illness (if under the age of 12) or for children with a long-term illness or a disability
• Exams: people pursuing education have the right to 4 days off per class per year to prepare for exams.
• Running for public office: days off following the relevant electoral law
• Other absences authorised or approved by the employer or which, by law, are considered justified

These days are fully paid and come on top of the holiday entitlement. They are topped at 30 days per year.

To learn about all statutory benefits, as well as how leading employers top that, download our benefits benchmark.

Employees are protected from any form of harassment during hiring or employment. Harassment is seen as any undesirable behaviour that either intends to or directly affects the person’s dignity, as well as creates an intimidating, hostile, degrading, humiliating or destabilising atmosphere.

Particular attention is placed on extending protections from any form of sexual harassment. That is seen as any undesirable behaviour of a sexual nature, whether verbal, non-verbal or physical, that has harassment as its purpose or result.

A candidate or employee can take civil action to seek compensation for any act of harassment under the Portuguese Civil Code. In addition, the employer can be subject to an administrative proceeding and be fined.

According to the Portuguese Labour Code, an employer cannot discriminate, directly or indirectly, based on:

• Ancestry
• Parentage
• Age
• Gender
• Sexual orientation
• Gender identity
• Marital status
• Family situation
• Genetic heritage
• Reduced work capacity
• Disability
• Chronic disease
• Nationality
• Country of origin
• Ethnic origin
• Race
• Religion
• Political or ideological convictions
• Union affiliation

A candidate or employee who has been a victim of discrimination will have to indicate who the individual/s that have discriminated against them are. In turn, if any differences in the employee’s working conditions are present, the employer will have to prove that they didn’t result from discrimination and give an explanation. The protection against discrimination covers all parts of the employment contract – from hiring to training and promotion and extends to work conditions, pay and termination. Employees who have been discriminated against are entitled to compensation for any damages.

If the company undergoes a business transfer, existing employment contracts transfer automatically to the new employer. Employees retain the length of service provided to the former employer, which must be recognised by the new employer.

The employee retains the former employer’s rights and obligations under the employment contract before the transfer. The employee has to agree to any changes to the terms and conditions of employment.

Employees are protected against dismissal before and after a business transfer. However, if the employee refuses to perform work for the new employer, they are in breach of contract and could be dismissed. The only exception is if the new employer is not providing them with work, which gives employees the ability to resign with just cause and claim compensation.

Pregnant workers, those who have given birth in the previous 120 days or those who are breastfeeding, as well as employees on paternity leave, are protected from being dismissed.

In all other cases, employers must follow a standard and documented disciplinary procedure before terminating an employment contract, first informing the employee, giving them a chance to defend themselves, and then issuing a dismissal decision letter.

Pregnant employees whose work duties might put the pregnancy at risk have the right to an alternate arrangement for work. The employer must:

• Provide alternative working conditions
• Offer a compatible workplace
• Protect the employee from risk exposure

Alongside the above, pregnant employees are also exempt from having to work night shifts, overtime or concentrated working schedules. They also have the right to work leave to attend prenatal medical appointments, as well as breastfeeding.

The Portuguese Labour Code contains several provisions regarding employees’ right to privacy, including data protection, biometric data, medical tests and exams, remote surveillance and correspondence, and access to information using the company’s means of communication.

The personal data of employees in Portugal is protected by the EU General Data Protection Regulation (GDPR). Under GDPR, employers must comply with the following principles when handling the personal data of employees:

• Use personal data reasonably, lawfully, and in a transparent manner
• Process the data only for specific, explicit, and legitimate purposes
• Obtain data for lawful purposes only and refrain from using it for anything else
• Ensure it is accurate, relevant, and up-to-date
• Ensure it is not kept for longer than necessary
• Ensure it is kept secure

Organisations should have a Privacy Statement, which employees can easily access, explaining what data is held and what it is used for. Since employees are allowed to access their data, employers need to have in place a procedure for how these requests are handled within one month.

Under GDPR legislation, employees have the right to:

• Receive information about the collection and processing of their data
• Access the personal data and supplementary information held about them
• Have their data corrected if there are mistakes or inaccuracies
• Have their data erased
• Restrict the handling or use of their data if they consider it is unlawful or the information is inaccurate
• Challenge the use of their data for direct marketing, scientific or historical research

Although not mandatory, employees have the right to set up work councils.