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SALARY PAYMENT IN Euro (EUR, €)
CONTRACT LANGUAGES Portuguese / English
PAYROLL TAX 26.50%
PAYROLL CYCLE Monthly
TIME TO HIRE 12 hours
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Employees in Portugal must complete a probation period when they commence employment. During this time, they are not entitled to the same rights and benefits that a long-term employee would be.
Maximum probation period limits vary depending on the type of work.
For high-complexity jobs, the maximum probation period is 6 months.
For senior or management-level jobs, the maximum probation period is 8 months.
In practice, the standard is around 90 days. We recommend following this standard with all of your employees.
Probation periods are a standard part of employment contracts in Portugal. This trial period allows both employer and employee to assess their suitability for a long-term working relationship.
Typically, probation periods last 90 days, but they can extend to 180 days for positions involving higher complexity or responsibility. For senior management or executive positions, the maximum probation period is 240 days.
The connection between employment contracts and probationary periods is deeply embedded in the legal framework governing labor relations, as defined by the Portuguese Labor Code.
Probationary periods in Portugal are formal aspects of employment contracts. This means they can’t be verbally agreed upon and must be explicitly stated in the written contract. The details of the probation period, including its duration (which varies based on job type), should be clearly outlined in the document.
Both the employer and employee are legally bound to the terms of the probationary period as outlined in the contract.
Probationary employees in Portugal have certain rights established by law. The good news is you are still entitled to basic workplace protections. You are entitled to receive minimum wage and be compensated for overtime hours worked, just like any other employee. Additionally, probationary employees have the right to a safe work environment and cannot be discriminated against based on factors like race, gender, or age.
However, there are some key differences in termination rights during probation. Unlike permanent employees, employers can dismiss you during your probation period without needing a specific reason or providing compensation.
The required notice period for termination by the employer increases as your probation progresses. There’s no notice required in the first two months, but after that, employers need to give you at least 7 days’ notice, rising to 14 days after four months.
Remember, these rights apply to you throughout your probationary period, so don’t hesitate to speak up if you have any concerns about your work environment or treatment by your employer.
Employers in Portugal have specific legal responsibilities towards their probationary staff.
First and foremost, they are required to uphold general health and safety protocols in the workplace in compliance to Portuguese Employment Code, Arts. 281 to 284. This means providing a safe work environment and ensuring you have the necessary equipment to perform your duties without risk.
Additionally, employers must enroll you in a work accident insurance policy, which protects you in case of any injuries sustained on the job. It’s important to note that if your role involves providing professional services or advice, your employer might also be required to carry professional indemnity insurance. This type of insurance covers legal liabilities arising from errors, omissions, or negligence in the performance of your professional duties.
For a comprehensive understanding of compulsory insurance requirements for specific occupations, you can consult the list published by the Insurance and Pension Funds Supervisory Authority (ASF) on their website. The ASF is the Portuguese regulator for insurance activity. Remember, accidents need to be reported within specific timeframes, so be sure to communicate any incidents to your employer promptly.
While there’s more flexibility in termination during probation, employers can’t fire you for discriminatory reasons. This means they can’t let you go based on your race, gender, age, or other irrelevant factors as protected by Commission for Equality in Labour and Employment (CITE). Probation should focus on assessing your job performance and suitability for the role, not personal characteristics.
If you suspect discrimination, it’s important to document the situation and seek legal advice to understand your options.
Probationary periods are not mandatory in Portugal, but they are extremely common and highly recommended for both employers and employees. There is no legal requirement to include them in employment contracts. However, having a probationary period clearly outlined in the written contract offers significant advantages for both parties.
The benefits of probationary periods in Portugal are manifold.
For employers, it offers a valuable opportunity to evaluate the employee’s skills, work ethic, and integration into the company culture without the immediate constraints of a long-term contract. This can significantly reduce the risk and cost associated with hiring unsuitable candidates.
For employees, probationary periods provide a chance to understand the workplace environment, the demands of the job, and to decide if the position aligns with their career aspirations and personal values. It’s a period during which they can showcase their abilities and adapt to the company’s operations, with the security of knowing they have legal protections, including salary, social security benefits, and workplace rights.
Thus, probationary periods serve as a critical adjustment and evaluation phase, benefiting both parties by facilitating a more informed and mutually beneficial employment decision.
The probationary period is a crucial time for both employers and employees in Portugal. Here are some best practices to ensure a smooth and successful experience:
Set clear and measurable goals for the probationary period. Outline these expectations in writing and discuss them thoroughly with the new hire during onboarding.
Schedule regular meetings (at least monthly) to provide constructive feedback on the employee’s performance. This allows for course correction if needed and helps the employee understand areas for improvement.
Provide opportunities for the employee to learn and grow. This could include assigning them tasks that stretch their skills, offering mentorship programs, or encouraging participation in relevant training courses.
Take initiative and demonstrate a willingness to learn. Ask questions, seek clarification on tasks, and actively participate in training opportunities.
Maintain open communication with your manager. Don’t hesitate to voice any concerns or ask for help when needed.
Actively participate in performance reviews and take feedback constructively. Use this opportunity to showcase your progress and discuss your career goals within the company.
Your business can easily hire employees in Portugal without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
While your employee is on their probation period, you must give the following notice according to the amount of time served:
Employees must give the same notice required by employers to terminate employees:
An employer can extend the probationary period in some cases. If you think you might want to extend the probationary period for your employee, be sure to include a clause in the employment contract giving you this right. Note the maximum probation period timelines above.
Yes, you can dismiss an employee without reason or compensation during their probation period. For employees who have worked less than 60 days, there is no notice requirement. However, after 60-120 days, you must provide at least seven days of notice, and after 120 days you must provide at least 14 days of notice.
Employees in Portugal may be required to give notice of resignation during their probation period, depending on their length of service. For 0-60 days, there is no requirement. After 60-120 days, they must provide at least seven days of notice. After 120 or more days, they must provide at least 14 days of notice.
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