Working in Portugal - Conclusion of Contracts

A contract of employment is the means whereby one person, in return for payment, undertakes to perform intellectual or manual activity for another person, under the latter's authority and direction.

The minimum age for providing work for an employer is 16, though a contract of employment may only be entered into if the young person has completed compulsory schooling. People of at least 18 years of age may enter into contracts of employment even if they have not completed compulsory schooling.

Types of contract of employment

Preliminary contract

This is a type of contract whereby employer and employee undertake to enter into a contract of employment in the near future.

Such contracts are valid only if they are in writing, and must show the type of duties to be provided and the remuneration payable.

Contract of employment of indefinite duration

These contracts do not involve a time limit, and once they have been entered into they can be terminated only with the mutual consent of employer and employee, on the employee's initiative, or for just cause invoked by the employer.

Portuguese law does not require this type of contract to be set down in writing.

Fixed-term contract of employment

This has a limited duration and must be in writing, specifically setting out the grounds justifying the hiring of labour. This type of contract generally lasts for six months, though they may be shorter (in situations provided for by law) or longer, up to a maximum of six years.

The contract terminates on the date agreed previously, if the employer informs the employee in writing (at least eight days prior to the end of its term) that he does not intend to renew it. If such notice is not given the contract is deemed to be renewed for an equal period. Contracts with a duration of less than six months cannot be renewed.

Contract of employment of unspecified duration

This contract does not have an expiry date and lasts as long as the temporary need justifying the fixed-term hiring. Contracts of employment of unspecified duration may only be entered into in the following situations: direct or indirect replacement of an absent employee; seasonal activities; performance of an occasional duty or a well-defined particular temporary service; an exceptional increase in the enterprise's business; performance of projects or other defined temporary activities.

Contracts of unspecified duration expire when the employer informs the employee of their likely conclusion or the occurrence of the fact justifying signature of the contract. The employer must give the worker at least seven, 30 or 60 days' notice, according to whether the contract lasts for less than six months, from six months to two years, or for a longer period respectively. Contracts of unspecified duration expire on a fixed date with no need for either employer or employee to give prior notice.

Part-time contract of employment

This corresponds to normal weekly working hours equal to or less than 75% of those performed on a full-time basis in a comparable situation. Part-time contracts of employment must be in writing, and must show the normal daily and weekly working hours, with comparative reference to the full-time work. If the contract is not in writing it is deemed to have been entered into on a full-time basis.

Telework contract

This is deemed to be work carried out under legal subordination, usually outside the employer's enterprise and by means of the use of information and communication technologies. Unwritten agreements or agreements that do not make reference to the post or duties to be performed, with specific reference to the telework scheme, are not deemed to be covered by that scheme. The initial duration of a written telework contract may not exceed three years, and either party may decide to terminate the contract during the first 30 days of its performance. Teleworkers have the same rights and are subject to the same obligations as workers who do not perform their activity under the telework scheme.

Probationary period

This is the preliminary phase of contracts of employment in which the parties are free to terminate the employment relationship. Unless otherwise provided for, the time-limits laid down by law are observed.

Contracts of indefinite duration

90 days for most workers; 180 days for posts of a highly technical nature or involving a high level of responsibility, special qualifications or trust; 240 days for senior managerial and professional staff.
Fixed-term contracts: 15 days for contracts with a duration of less than or equal to six months, 30 days for contracts with a duration in excess of six months.

Useful information:

• Código do Trabalho [Labour Code], Law No 99/2003 of 27 August
  IDICT – Instituto do Desenvolvimento e Inspecção das Condições de Trabalho [Institute for the Development and Inspection of Working Conditions]
  Praça de Alvalade, 1 - 1749-073 Lisbon
  idict@idict.gov.pt
  Tel: +351 217 924 500; Fax:+ 351 217 924 597

Text last edited on: 12/2004

Source: European Union
© European Communities, 1995-2007
Reproduction is authorised.