Portugal Employment Guide
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.
Check recruitment costs
Currency
Euro (EUR, €)
Capital
Lisbon
Official language
Portuguese
Salary Cycle
Monthly
Our Employment Guide in Portugal
Browse the following tags to learn all about hiring employees in Portugal
Navigating Employee Termination in Portugal: A Comprehensive Guide
Terminating employment contracts in Portugal requires careful adherence to complex regulations and statutory requirements. The dismissal process must be managed by employers in coordination with key stakeholders, often involving specific procedures and potential temporary costs depending on the termination circumstances.
Valid Grounds for Employment Termination
Portuguese labor law permits termination only under specific justified circumstances, primarily related to performance issues or redundancy situations. Acceptable grounds include:
- Employee-initiated resignation
- Mutual agreement between parties
- Employer-initiated termination based on:
- Objective business reasons
- Disciplinary dismissal for cause
- Employee unsuitability for position
- Contract expiration
Special protections exist for employees on parental leave, pregnant workers, or those breastfeeding, making termination impermissible during these periods.
Notice Period Requirements
The required notice period varies significantly based on termination type, employment duration, and contractual terms.
During Probation Period
- No notice required for probation periods under 60 days
- 7-day notice for probation between 60-120 days
- 15-day notice for probation exceeding 120 days
Employer-Initiated Termination
For redundancy or unsuitability cases, notice periods escalate with service length:
| Employment Duration | Required Notice |
|---|---|
| Up to 1 year | 15 days |
| 1-5 years | 30 days |
| 5-10 years | 60 days |
| Over 10 years | 75 days |
Practical Considerations for International Employers
Companies like SailGlobal often encounter challenges when managing terminations across multiple jurisdictions. A recent case study involving a technology firm expanding to Lisbon demonstrated how proper termination planning prevented significant legal complications. The company successfully navigated a redundancy situation by:
- Conducting thorough documentation of performance issues
- Providing adequate notice as per Portuguese requirements
- Engaging local legal counsel for compliance verification
Understanding these termination protocols is essential for maintaining compliance and preserving employer reputation in the Portuguese market.
Hire easily in Portugal
Compare employee hiring costs across over 100 countries worldwide, helping you accurately calculate labor costs. Try it now
Cost Calculator
Please select the country/region you wish to recruit from, and the calculation can be done with just a few clicks.
USD