Background Checks

In Portugal, employers are generally prohibited from requesting personal information from job applicants or employees unless it is strictly necessary for evaluating their suitability for a specific role. This requirement is grounded in the principles of privacy, equality, and non-discrimination, and any such request must be clearly justified in writing.

Permissible Background Checks

• Background checks are more common in regulated sectors such as finance, healthcare, and public administration, where verifying integrity and qualifications is essential. However, all checks must comply with the General Data Protection Regulation (GDPR) and national labor laws. Some checks are only legally permitted under specific condition

Common Types of Background Checks:

• Academic Qualifications: Employers may verify educational credentials, but only those directly relevant to the job.
• Employment History & References: Reference checks require the candidate’s explicit consent and must respect privacy and anti-discrimination laws.
• Criminal Record Checks: Permitted only when legally required for the role (e.g., working with children or in financial positions). Employers must provide a written justification to the employee.
• Social Media Screening: Allowed only for publicly available profiles, and the information gathered must be relevant to the job’s nature.
• Credit History Checks: Typically used in financial roles and require explicit written consent from the candidate.

While most background checks are conducted during the recruitment process, they may also be carried out during the course of employment, provided they remain proportionate, justified, and lawful.

• Employer contribution: Approximately 16.5% of the employee’s salary
• Employee contribution: Approximately 9% of the employee’s salary

Verification and New Hire Reporting

Social Security Registration: Employers must register new hires with Portuguese Social Security (Segurança Social) before the employee starts work.

• New Hire Reporting: Employers must notify the Autoridade Tributária e Aduaneira (Tax Authority) and Segurança Social of the new employment relationship.
• Payroll Setup: Ensure the employee is registered for payroll with correct tax and social security deductions

Onboarding Process & Documentation

For Portuguese citizens:

• Citizen Card (Cartão de Cidadão) – serves as proof of identity and residency

For EU/EEA citizens:

• Valid ID or Passport
• NIF (Número de Identificação Fiscal) – Tax Identification Number
• NISS (Número de Identificação da Segurança Social) – Social Security Number
• European Citizen Registration Certificate – required for stays over 3 months

For Non-EU citizens:

• Valid Passport
• Job-Seeker Visa – mandatory since June 2024
• Work Contract – required to obtain a NISS
• NIF and NISS – must be obtained after arrival, often with employer assistanc

Healthcare

Portugal operates a universal public healthcare system—Serviço Nacional de Saúde (SNS)—which is accessible to all residents. While comprehensive, the SNS can involve long wait times for certain procedures and specialist appointments.

Legal Requirements

• Private health insurance is not mandatory for employers.
• All employees are covered under the public system through mandatory Social Security contributions.

Employer Practices
Despite not being legally required, employer-sponsored private health insurance is a highly valued benefit and a key component of competitive compensation packages:

• Common in larger companies and sectors with high competition for talent.

Coverage levels vary:

• Basic plans: Outpatient care and hospitalization.
• Comprehensive plans: May include dental, vision, mental health, and wellness services

Cost and Contributions

• Premiums depend on provider, coverage level, employee age, and plan structure (e.g., deductibles, co-pays).
• Employers typically cover most or all of the employee’s premium.
• Family coverage is often available at the employee’s expense or via cost-sharing.

Compliance Considerations

• If offered, health insurance must be managed in line with tax and labor regulations.

Employers must:

• Ensure proper enrollment and communication of benefits.
• Understand tax advantages, such as those linked to meal allowances or insurance caps.
• Offering private health insurance is a strategic tool for attracting and retaining talent and signals a strong commitment to employee well-being.

Retirement

Portugal’s retirement system is anchored by a state-funded Social Security pension, with optional employer-sponsored plans available.

State Pension System

• Funded through mandatory contributions from both employers and employees.

Provides retirement income based on:

• Years of contributions
• Average earnings during the contribution period

Employer-Sponsored Pension Plans

• Not mandatory, but increasingly offered as a supplementary benefit.

Common types:

• Defined Contribution Plans (more prevalent)
• Defined Benefit Plans (less common, typically legacy schemes)

Employee Expectations

• While the state pension is standard, employees—especially in senior or high-income roles—value additional retirement savings options.
• Supplementary pension plans are seen as a sign of long-term employer commitment.

Compliance Requirements

Employers must:

• Ensure accurate Social Security contributions.
• If offering a private pension, comply with registration, reporting, and governance rules under Portuguese pension regulations.

Providing a supplementary pension plan can significantly enhance your employer brand and help attract experienced professionals seeking long-term financial security.

Social Security

At this time, Vensure does not have social security details available.

Employment Contract Details

Portuguese labor law primarily recognizes two main types of employment contracts: indefinite-term and fixed-term contracts.

• Indefinite-term contracts are the standard and preferred form of employment. These contracts have no predetermined end date and are typically used for permanent roles and core business functions.
• Fixed-term contracts are permitted only under specific legal conditions and must be justified in writing. They are commonly used for temporary projects, seasonal work, replacing absent employees, or launching new ventures. The initial term is generally limited to two years and may be renewed up to three times, within legal duration limits.

Other contract types include:

• Part-time contracts, which may be either indefinite or fixed-term, involve fewer working hours than full-time roles and are used when reduced hours are appropriate.
• Intermittent contracts, where work is performed in alternating periods of activity and inactivity, are suitable for roles with irregular or cyclical demands.

Fixed-term contracts must always be in writing and clearly state the reason for their temporary nature. Strict rules apply to their duration and renewal to prevent misuse for roles that are effectively permanent.

Essential Clauses

• Identification of the parties: Full names, addresses, and identification details of both the employer and the employee.
• Job title and description: A clear outline of the employee’s role, responsibilities, and duties.
• Workplace: The primary location where the work will be performed.
• Working hours: Details of the daily and weekly schedule, including start and end times and rest periods.
• Remuneration: The base salary, payment frequency, and any additional benefits or allowances.
• Start date: The date on which the employment relationship begins.
• Duration (for fixed-term contracts): The specific end date or the conditions that determine the end of the contract.

Probation Period

Employee: May terminate the contract at any time without notice or justification.

Employer:

• If the trial period exceeds 60 days: 7 days’ notice required
• If the trial period exceeds 120 days: 30 days’ notice required

Visas

For Non-EU citizens:

• Valid Passport
• Job-Seeker Visa – mandatory since June 2024
• Work Contract – required to obtain a NISS
• NIF and NISS – must be obtained after arrival, often with employer assistance

Independent Contractors

Independent contractors, or “trabalhadores independentes”, are governed by a different legal framework than employees.
Legal Classification

• Contractors are not covered by standard labor protections (e.g., paid leave, severance, overtime).
• Portuguese law applies strict criteria to distinguish between genuine contractors and disguised employment:
• Degree of control by the hiring entity
• Integration into the company’s structure
• Economic dependence on a single client
• Use of company tools or schedules

Misclassification can lead to reclassification as an employee, with retroactive obligations for taxes, benefits, and penalties.

Social Security

• Contractors must register with Social Security and make their own contributions.
• They are eligible for limited benefits, such as sickness and parental leave, but not unemployment benefits.

Contract Requirements
A written contract is recommended, clearly outlining:

• Scope of services
• Payment terms
• Duration and termination clauses

Paid Time Off

Employees in Portugal are entitled to a minimum of 22 working days of paid annual leave per calendar year, exclusive of public holidays.

• First Year of Employment: Employees accrue 2 working days of leave per month, up to a maximum of 20 days. This leave typically becomes available after completing six months of service.
• Carryover Rules: Unused vacation days may be carried over into the following year but must be used by April 30.
• Anual Limit: Employees may not take more than 30 working days of vacation within a single calendar year, unless otherwise agreed.

Public Holidays

In addition to the 13 national public holidays, each of Portugal’s 308 municipalities observes its own local or municipal holiday. Employees are entitled to take the local holiday that corresponds to the location of their workplace. The exact date of the municipal holiday should be confirmed with the relevant local authority. Note: If a public holiday falls on a weekend, it is not typically compensated with an alternative day off.

• New Year’s Day
• Good Friday
• Easter Sunday
• Liberation Day
• Labor Day
• Corpus Christi
• National Day
• Assumption Day
• Republic Day
• All Saints’ Day
• Independence Restoration Day
• Immaculate Conception
• Christmas Day

Bereavement

In the event of the death of a close family member, employees are entitled to up to 5 consecutive days of paid leave. This applies to the loss of a spouse, parent, child, sibling, or other close relatives as defined by law.

Maternity Leave

Expectant mothers are entitled to 120 consecutive days of maternity leave, paid at 100% of their regular salary by Social Security. This benefit is exempt from tax and Social Security contributions.

• Eligibility: At least 80 days of employment in the 12 months prior to the expected due date.
• Pre- and Post-Birth: Leave includes 30 days before and a mandatory 6 weeks after childbirth.

Paternity Leave

Fathers are entitled to 28 working days of paid paternity leave:

• 5 consecutive days must be taken within 42 days of the child’s birth.
• Leave can be taken consecutively or in parts.
• An additional 7 days may be taken, some of which must overlap with the mother’s maternity leave.

All paternity leave is paid at 100% of the employee’s average salary over the last six months and is tax- and contribution-exempt.

Parental Leave

After maternity and paternity leave, parents may share additional parental leave:

• 120 days: Paid at 100% of salary
• 150 days: Paid at 80% of salary

Parents can decide how to divide this time, offering flexibility in caregiving responsibilities.

Sick Leave

Employees are entitled to sick leave when medically unable to work. The system is structured as follows:

• First 3 Days: Unpaid. Employees may submit a self-declaration to notify the employer.
• From Day 4 Onward: Paid by Social Security, provided the employee:
• Has at least 6 months of employment (consecutive or not).
• Submits a medical certificate confirming temporary incapacity.

Sick Pay Rates (based on duration of illness):

• Up to 30 days: 55% of reference salary
• 31 to 90 days: 60%
• 91 to 365 days: 70%
• Over 365 days: 75%

Maximum Duration:

• Employees, seafarers, coastguards: Up to 1,095 days
• Self-employed and researchers: Up to 365 days

Termination Requirements

Notice periods in Portugal are governed by the Labor Code and may be further defined in employment contracts or collective bargaining agreements. The required notice depends on the type of contract and the employee’s length of service.

Indefinite (Open-Ended) Contracts

• Up to 2 years of service: 30 days’ notice
• More than 2 years of service: 60 days’ notice

Fixed-Term Contracts

• Up to 6 months: 15 days’ notice
• More than 6 months: 30 days’ notice
• Approaching contract expiry: 8 days’ notice before the end date

Trial/Probation Period

• Employee: May terminate the contract at any time without notice or justification.
• Employer:
  • If the trial period exceeds 60 days: 7 days’ notice required
  • If the trial period exceeds 120 days: 30 days’ notice required

Notice Period

Notice periods in Portugal are governed by the Labor Code and may be further defined in employment contracts or collective bargaining agreements. The required notice depends on the type of contract and the employee’s length of service.

Severance Pay

Severance pay is required in cases of fair dismissal due to objective reasons (e.g., redundancy or unsuitability), and the amount depends on the contract type and length of service.

Indefinite-Term Contracts

• Severance is calculated at 12 to 18 days of base salary per year of service
• Capped at 240 times the national minimum monthly wage

Fixed-Term Contracts

• Severance is calculated at 24 days of base salary and seniority allowances per year of service

Additional Notes

• Higher severance amounts may be negotiated to avoid litigation.
• Severance may also apply for dismissals during the 91st to 180th day of the probation period.
• No severance is owed in cases of dismissal for just cause.

Unemployment Insurance

To qualify for unemployment benefits, individuals must meet the following conditions:

• Reside in Portugal
• Be involuntarily unemployed
• Be capable and available for work
• Be registered as a job seeker with the local employment center
• Have completed at least 360 days of paid work in the 24 months prior to unemployment

If the 360-day requirement is not met, individuals may still qualify for Social Unemployment Benefit, a lower-tier support.

Benefit Amounts

Unemployment benefits are calculated based on the worker’s reference salary and are subject to minimum and maximum limits tied to the Social Support Index (IAS):

• IAS (2025): €522.50
• Minimum Benefit: €522.50 (1x IAS)
• Maximum Benefit: €1,306 (2.5x IAS) Special rules apply for:
• Workers earning below the IAS
• Couples who are both unemployed with dependents

Benefit Duration

The duration of unemployment benefits depends on the age of the beneficiary and the length of their contribution history:

• Under 30 years: 150 to 330 days
• 30–39 years: 180 to 420 days
• 40–49 years: 210 to 540 days
• 50+ years: 270 to 540 days

Additional days may be granted for every 5 years of contributions within the last 20 years. Additional Notes

• Partial unemployment benefits may be available if the individual starts part-time work while receiving support.
• Benefits are paid monthly and are subject to Social Security contributions.
• Individuals must actively seek employment and comply with job center requirements to continue receiving benefits.

Anti-Discrimination Practices

Portuguese law strictly prohibits discrimination in all aspects of employment based on a wide range of protected characteristics. These protections apply throughout the entire employment lifecycle, including:

• Recruitment and hiring
• Terms and conditions of employment
• Access to training and promotion
• Disciplinary actions and termination

Protected Characteristics Include:

• Ancestry and ethnic origin
• Age
• Sex and sexual orientation
• Marital and family status
• Economic and social situation
• Education and social origin
• Genetic heritage
• Disability or reduced work capacity
• Chronic illness
• Nationality and territory of origin
• Language
• Religion or belief
• Political or ideological convictions
• Trade union membership

Enforcement and Remedies
Enforcement of anti-discrimination laws is overseen by:

• ACT – Autoridade para as Condições do Trabalho (Authority for Working Conditions)
• CITE – Comissão para a Igualdade no Trabalho e no Emprego (Commission for Equality in Labor and Employment)

Employees who believe they have experienced discrimination may:

• File a complaint with ACT or CITE
• Pursue legal action through the labor courts These institutions are empowered to investigate complaints, mediate disputes, and impose penalties on employers found in violation of the law.

Workplace Safety Standards

Employers in Portugal are legally required to ensure a safe and healthy working environment for all employees. This duty includes implementing preventive strategies and maintaining effective safety protocols.

Core Employer Responsibilities

• Risk Assessment: Identify and evaluate potential hazards in the workplace.
• Preventive Measures: Implement controls to eliminate or minimize identified risks.
• Personal Protective Equipment (PPE): Provide appropriate PPE at no cost to employees.
• Training and Information: Educate employees on workplace risks and safety procedures.
• Health Surveillance: Conduct regular medical checks where required by law or job function.
• Health & Safety Services: Establish internal safety services or contract certified external providers.
• Incident Investigation: Promptly investigate workplace accidents and occupational illnesses to prevent recurrence.

Regulatory Oversight

The Authority for Working Conditions (ACT) monitors compliance with occupational health and safety laws. ACT is empowered to:

• Conduct workplace inspections
• Issue recommendations or mandatory corrective actions
• Impose fines or sanctions for non-compliance

Workers’ Compensation

Workers’ compensation insurance is legally required for all employers in Portugal. It applies to:

• Full-time and part-time employees
• Temporary and fixed-term contract workers

Employers must purchase this insurance from an authorized provider. Failure to do so is a serious offense and makes the employer personally liable for all injury-related costs.

What It Covers

Workers’ compensation insurance provides financial and medical support for employees who suffer work-related injuries or illnesses, including:

• Medical treatment (hospitalization, surgery, medication, rehabilitation)
• Temporary disability benefits
• Permanent disability compensation
• Death benefits for dependents
• Funeral expenses

Benefit Levels

Temporary Total Disability:

• 70% of gross salary for up to 12 months
• 75% after 12 months

Permanent Total Disability:

• 80% of gross salary

Partial Disability:

• Proportional to the degree of incapacity
• If under 30%, paid as a lump sum

Death Benefits:

• Spouse: 30% of gross salary
• Children: 20% for one, 40% for two, 50% for three or more
• If both parents are deceased, benefits double (max 80%)

Funeral Grant:

• Up to 4x the national minimum wage

Employer Responsibilities

• Secure valid workers’ compensation insurance before employment begins
• Report workplace accidents promptly to the insurer and authorities
• Cooperate with medical evaluations and return-to-work planning

Labor Law Sanctions

Labor Code (Código do Trabalho): Governs employment contracts, working hours, holidays, parental leave, and termination. Sanctions include fines for violations such as: Illegal dismissal: up to €61,200 depending on company size and severity. Failure to pay wages or overtime: €612 to €61,200. Breach of working time rules: €204 to €9,690. Criminal liability for repeated or serious offenses (e.g., falsifying employment records).

Occupational Health and Safety Law: Ensures safe working conditions and employer obligations to prevent workplace accidents. Sanctions include fines from €1,000 to €60,000 for non-compliance. Temporary closure of workplaces in case of imminent danger. Criminal charges in case of gross negligence causing injury or death.

Equal Opportunities and Anti-Discrimination Law: Prohibits discrimination based on gender, age, disability, ethnicity, religion, or sexual orientation. Sanctions include fines up to €44,000. Compensation to affected employees. Public disclosure of discriminatory practices.

Posting of Workers and Cross-Border Employment: Regulates conditions for workers posted to Portugal from other EU countries. Sanctions include fines for non-compliance with wage, working time, and accommodation standards. Joint liability of contractors and subcontractors for wage violations.

Collective Bargaining and Union Rights: Protects the right to organize, bargain collectively, and strike. Sanctions include fines for obstructing union activity or retaliating against union members. Court orders to reinstate unfairly dismissed union representatives.