Employment
The Labour Code, just-cause dismissal and extended collective agreements
The Labour Code consolidates individual and collective employment law. Dismissal requires a statutory ground and a formal procedure, and collective agreements can be extended by ministerial order to a whole sector.
Key rules
- Dismissal without just cause or a valid objective ground is unlawful and can lead to reinstatement.
- Fixed-term contracts are permitted only on listed grounds and for limited overall duration.
- Employees are entitled to holiday and Christmas allowances in addition to monthly pay.
Governing law
- Labour Code (Código do Trabalho) (Act 7/2009)
- Code of Labour Procedure
In practice
The fourteen-payment year (twelve salaries plus two allowances) must be factored into any cost model for hiring in Portugal.