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Labour/employment law data for Portugal

1. Is it a legal requirement that employees must receive an employment contract ? No, except if it is a fixed term contract.
2. What factors constitute a fair dismissal i.e.legally justifiable reasons to terminate employment without the need to pay compensation? If the dismissal is for economic or operational reasons of the company/business and there is a need to reduce employees; or for gross misconduct/just cause or violation of the contract.
3. What is good practice with regard to dismissal procedures to minimise the risk of claims for unfair dismissal? Clear procedures with regard to consultation, allowing the employee to defend him/herself and present evidence up to a final report; the right to appeal to a court. Procedures should be followed even in cases of gross misconduct.
4. If an employee is dismissed unfairly what is the financial range of compensation that can be made to employees? Reinstatement or compensation (one months salary for each year of service - minimum 3 months salary); plus the salary since dismissal and the judgement.
5. Do employees have the right to be members of a trade union? Yes
6. Is there any legal requirement for an employer to contribute to a pension for employees? No, but social security payments are 23.75% of salary for the employer and 11% - employee.
7. What are standard maternity rights? Up to 4 months leave (and rights to breast feed for up to 1 hour per day for one year); fathers can take 2 months of the 4 months leave.  
8. What are parental leave rights (including paternity leave)?
9. When are employees eligible for redundancy payments?  See 4 above.
10. What are the statutory redundancy payment limits?
11. Can existing employees be dismissed if you buy a business with employees? No (except for collective dismissals to reorganise the whole company or by mutual agreement).
12. Any other general legislation? The range of EU legislation (e.g. anti-discrimination and working time/harassment regulations etc.)

 

 

 

 

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