In an ever more interconnected world, an increasing number of companies decides to outsource part of their value chain, to purchase services or to contract workers abroad, since the local market cannot satisfy the company’s need for personnel. Portugal was and is a popular target country for investors and companies from German- and English-speaking countries.

Not knowing the stipulations under Portuguese labour and social security law regarding recruitment and employment, remuneration, holidays, dismissal and settlements could cause high indemnity costs for companies. With that in mind, we advise clients, companies as well as individuals, in all individual and collective labour law matters regarding employment relations in Portugal.

Labour Law

In general, Portuguese labour law distinguishes between temporary and permanent employment contracts. However, there are strict limitations for temporary contracts, limiting their permitted cases of application. Concluding such temporary contracts is possible for example, when the services of the worker are limited to one project, when he or she is hired to support the company in moments of high workloads or when he or she temporarily substitutes another worker.

In Portugal, labour law is closely connected to social security law, which, among other things, regulates the social security contributions of the employer and employee as well as their corresponding duties.

In individual labour law, we advise companies on all matters arising from work contracts under Portuguese law regarding employment conditions, remuneration, warnings, dismissals, cross-border mobility and remote working. Our services include:

• Advise on all questions regarding recruitment and employment of employees in Portugal including the preparation of the corresponding contracts.
• Advise on employee leasing in Portugal.
• Advise in cases of objective and disciplinary dismissal (including warnings and letters of dismissal).
• Review and adaptation of existing employment contracts by preparing the corresponding side letters.
• Clarification of all questions regarding posting workers abroad.
• Advise as part of Due Diligence evaluations for internationalisation projects and the incorporation of subsidiaries / branch offices.

Special Employment Contracts with Senior Executive Employees

The work relationship between a company and a senior executive employee is based on a special relationship of trust, which translates to special considerations when drawing up the corresponding employment contracts.

Based on our extensive experience in negotiation and drawing up special contracts with employees in positions of leadership, senior executive employees and future members of the management body, we offer the following services to our clients:

• Advise on all matters regarding the drafting, modification and termination of special employment contracts.
• Preparing contracts, side letters and addendums, warnings, letters of dismissal, etc. for employing employees in positions of leadership, senior executive employees and members of the management body.
• Legal evaluation and memorandums on employment contracts and the relations arising from them as well as the risks connected to them and recommendations on how to proceed.