Business

Portugal — Business: Hiring Employees

The legal default is an indefinite-term contract (Contrato de Trabalho sem Termo); fixed-term contracts (Contrato de Trabalho a Termo Certo) are permitted only under specific statutory conditions (e.g. temporary replacement, seasonal demand) and capped at a cumulative 2 years. Standard probationary periods are 90 days, extending to 180 or 240 days for highly technical or senior managerial roles. The standard workweek is capped at 8 hours/day and 40 hours/week; employees get a statutory minimum of 22 working days of paid annual leave. At-will employment does not exist — dismissals must be justified via objective economic criteria (redundancy) or formal disciplinary process; 2026 severance is calculated at 12-14 days of base pay plus seniority per year of continuous employment.

Autoridade para as Condições do Trabalho (ACT) / Portuguese Labour Code · Last verified 2026-07-17

Key Facts

  • Indefinite-term contracts are the legal default; fixed-term contracts are capped at 2 cumulative years.
  • Standard probationary period is 90 days (180-240 days for technical/senior managerial roles).
  • Standard workweek is capped at 8 hours/day and 40 hours/week.
  • Statutory minimum paid annual leave is 22 working days.
  • At-will employment does not exist; dismissals require objective economic justification or a disciplinary process.
  • 2026 severance pay baseline: 12-14 days of base pay plus seniority per year of continuous employment.

Related Topics

payrollsocial-security
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