Hiring in Portugal: What Employers Need to Know ?

Thinking of expanding your business into Portugal? If yes, you are not the only one. In recent years more and more businesses are expanding into the portuguese market due to its strategic location, ease of doing business and availability of highly skilled workforce.

An important part of the expansion process is to hire qualified and experienced employees in order to achieve growth in the respective market.If you are planning to hire in Portugal, then it is important to have a sound knowledge of the Portuguese labour laws, employment contracts, and regulatory framework. The article will highlight the key aspects of hiring in Portugal that employers should be aware of.

Portugal Employment Law

Portuguese employment law is designed to balance employer and employee rights and is governed by the “Código do Trabalho”, or labour code. Key provisions under the code include the following key points;

• A minimum rest period of 11 consecutive hours every 24 hours. 
• A max working period of 40 hours per week.
• Minimum 22 vacation days per year.
• Compensation for overtime work. 
• Employees on sick leave can receive up to 70% of their salary for up to 1095 days.

Type of Employment Contracts in Portugal

There are several types of employment contracts for workers in Portugal. Below are some major types of contracts, used by employers all across the country.

• Permanent Contract (Contrato Sem Termo)
• Fixed term contract
• Teleworking Contract
• Short duration contract
• Part time contract
• Temporary work contract
• Provision of services contract

Immigration Constraints

EU/EEA nationals have the right to live and work in Portugal without requiring any visa. On the other hand non-EU/EEA nationals must have a valid work visa in order to work in Portugal. This typically involves the employer sponsoring the visa.There are various visa types, such as the temporary stay visa and the residence visa for different work purposes. Each visa type has its own eligibility criteria and limitations. For more information, you can visit the Official Website of Portuguese Immigration .

Employee Benefits and Compensations

So what employee benefits and compensations are in place for workers in Portugal? There are a number of employee benefits, to which all those working in the country are entitled to. 

• Paid annual leave
  All employees have a right to a minimum of 22 working days in vacation. Some employers offer more.
• Bonuses
  This is a common way of attracting great co-workers in Portugal. There are several different bonuses in the Portuguese workplace, offered every year.
• Overtime
  You are generally entitled to overtime pay, and if you work late at night or very early mornings, as well as weekends, you are generally paid more than otherwise per hour.
• Flexible working hours
  Employees are allowed to offer flexible working schemes where the employee can work a maximum of 12 hours per day, or 60 hours per week. 
• Parental leave

Parents have a right to up to 150 days of parental leave in Portugal. Parts of these days are dedicated to the father and parts to the mother. Some days can be chosen by each family.

How an Employer of Record (EOR) Can Help With the Hiring Process in the Portugal

Expanding into a new market and hiring can be time consuming, complex and costly, especially if you do not have prior knowledge of the regulatory framework. Working with an Employer of Record in Portugal will smoothen your hiring process and ensure that you as an employer complies with local labour laws, tax laws, and immigration policies, eliminating the employer's risk of non-compliance. Below is how an EOR can help.

• Speed up the hiring process
  By working with a Portugues EOR, there will be no need to establish a local presence in Portugal, which saves you time and money because the EOR serves as the legal employer of the employees you hire. An EOR knows the ins and outs of local labour markets and laws, so recruiting is quicker and fewer hiring delays occur.
• Payroll Management
  The EOR (Employer of Record) takes care of the payroll process, which makes it much easier for employers to manage salaries in compliance with Portuguese law. They will calculate and submit all employee taxes and social contributions to the concerned authorities.
• HR Support
  An EOR provides ongoing HR support for employees, acting as a local point of contact for questions about payroll, benefits, time off, or any employment issues.

Apart from the above, working with an EOR can carry several other benefits such as compliance with local laws, employees onboarding & offboarding , risk migration etc.

The Bottom Line

Expanding into Portugal can be of strategic advantage as the country boasts a well-developed infrastructure, including modern transportation networks, advanced telecommunications, and reliable energy sources.While the hiring process in Portugal is normally structured and influenced by the labour law and cultural factors therefore working with a reliable EOR service like Swapp Agency can provide peace of mind as they manage the complex legal and administrative aspects related to the recruitment process and you can focus on your business growth.