Labor law
in Portugal.

SALARY PAYMENT IN Euro (EUR, €)

CONTRACT LANGUAGES Portuguese / English

PAYROLL TAX 26.50%

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours
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Portugal

Notice period laws in Portugal

Dismissals

In Portugal, mandatory notice periods for dismissals vary depending on the length of service.

These figures apply to employees on indefinite-term employment contracts. The notice periods vary slightly for workers on fixed-term contracts.

For workers in their probation period:

<60 days → no notice
60-120 days → seven days of notice
>120 days → 14 days of notice

After probation:

<1 year employment → min. 15 days
1-5 years → min. 30 days
5-10 years → min. 60 days
>10 years → min. 75 days
Standard → one month

Resignations in Portugal

Notice periods for resignations vary depending on length of service. These figures apply to employees on indefinite-term employment contracts. The notice periods vary slightly for workers on fixed-term contracts:

During probation:

<60 days → no notice
60-120 days → seven days of notice
>120 days → 14 days of notice

After probation:

<2 years employment → min. 30 days
>2 years employment → min. 60 days
Standard → one month

Severance laws in Portugal

Employees in Portugal are entitled to severance payments if they are not in their probation period and are dismissed under ordinary circumstances by their employer.

Severance payments should be between 12 days and one month of salary for every year of service, up to a maximum of 12 months of salary.

We recommend always paying severance to employees upon dismissal in order to avoid legal challenges.

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FAQs

What are the most relevant legal documents related to employment law in Portugal?

The most relevant legal document in Portugal is the Labour Code / Labor Code of Portugal. You can find an English version of the Labour Code here.

Can I terminate an employee during their probationary period in Portugal? How much notice do I need to give?

You can terminate an employee during the probation period in Portugal. See the following rules governing employee termination during the probation period:

<60 days → no notice
60-120 days → seven days of notice
>120 days → 14 days of notice

Can the employee terminate employment during their probationary period in Portugal? How much notice do they need to give?

Yes, the employee can terminate employment during the probation period in Portugal. They follow these rules:

<60 days → no notice
60-120 days → seven days of notice
>120 days → 14 days of notice

After the probationary period, what is the process to terminate employment in Portugal?

After the probationary period, the regulations around terminating employment is as follows:

<2 years employment → min. 30 days
>2 years employment → min. 60 days
Standard → Statutory minimum. There is no expectation to give additional notice than what is required by law.

Note that in Portugal, if an employer terminates an employee, they are required to pay severance. The rate for severance payment varies depending on the seniority of the employee, but it ranges from a minimum 12 days of salary, to 1 month of salary per year of service up to a maximum 12 months of salary.

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