Portugal Employment Guide

Portugal is in southwestern Europe, at the western end of the Iberian Peninsula, bordering the Atlantic (west) and Spain (north). It has ~10.3 million people; Portuguese is official, and Lisbon is the capital. Its economy is service-led, with fast-growing tourism, finance and IT, while agriculture, fisheries and light industry also hold shares. Labor laws (per Código do Trabalho) protect wages, hours, leave and social security. Standard workweek: 40 hours (overtime needs extra pay or time off). Salaries are usually monthly (avg. €1,500 pre-tax). Laws cover paid leave and protect temp/contract workers, balancing interests for a fair, flexible labor market.

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Currency

Euro (EUR, €)

Capital

Lisbon

Official language

Portuguese

Salary Cycle

Monthly

Our Employment Guide in Portugal

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Essential Elements of an Employment Contract in Portugal

In Portugal, employment contracts must be drafted in Portuguese, although bilingual versions are acceptable. A written agreement signed by both parties is mandatory.

The contract should clearly outline the following key components:

Full name of the employee
Official start date of employment
Duration of the contract
Detailed job description
Terms and conditions of the probationary period
Conditions for contract termination
Entitlements for annual leave and Christmas bonus payments
Specific provisions for remote work arrangements

Understanding Probation Periods in Portuguese Employment Law

While not compulsory, probation periods are commonly included in Portuguese employment contracts. The maximum allowable duration is 240 days, depending on the contract type and the employee's level of responsibility.

For open-ended contracts, the following standards apply:

90 days for standard employees
180 days for roles involving technical complexity, high responsibility, management functions, or requiring special qualifications
240 days for directors and senior management positions

Practical Considerations for International Employers

Companies like SailGlobal often face challenges when navigating Portugal's employment regulations. For instance, a technology firm expanding into Lisbon might need to adjust probation terms for senior developers versus entry-level staff. Proper documentation ensures compliance and minimizes legal risks.

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