Home > Things You Need to Know About Hiring Employees in Portugal
Published at 21 November 2023
Portugal has a well-established legal framework for hiring employees, which includes various legal requirements that employers must adhere to. These requirements ensure that both employers and employees are protected and fair employment practices are followed.
There are several benefits of hiring employees in Portugal, such as access to a skilled and diverse workforce, favorable tax incentives, and a business-friendly environment. Understanding the legal obligations and advantages of hiring in Portugal is crucial for businesses looking to expand their operations in the country.
Employers are also required to provide employees with a written employment contract that outlines the terms and conditions of their employment, including information on working hours, remuneration, and leave entitlements.
Hiring employees in Portugal comes with several benefits:
Generally, the recruitment process in Portugal is characterized by three steps of negotiation: candidate sourcing, interviewing, and contract negotiation. Let's learn a little bit more about each one of them:
Additionally, outline the job requirements and qualifications to ensure that only qualified candidates apply, and consider partnering with local recruitment agencies or professional organizations to tap into their expertise and networks.
During the interviewing and selection process, it is important to carefully evaluate candidates to ensure they possess the necessary skills and qualifications for the position. This can be done through a combination of structured interviews, skills assessments, and reference checks.
It's also important to consider cultural fit and the candidate's potential for growth within the organization. By conducting a thorough and objective selection process, employers can increase the likelihood of hiring the right person.
Once you have selected the ideal candidate, it is time to make an offer and negotiate the employment contract. Ensure that the offer includes all the necessary details such as salary, benefits, and start date.
During the negotiation process, both parties should discuss and agree on the terms and conditions of the contract, including working hours, probation period, and any additional clauses.
It is important to thoroughly review the contract to ensure it complies with Portuguese labor laws and workers' compensation insurance and protects the interests of both the employer and the employee. Seeking legal advice can be beneficial to ensure a fair and legally binding agreement.
Hiring employees in Portugal isn't just about finding the right candidates for the job and offering them a legal contract. Understanding the intricacies of Portuguese employment contracts and regulations is as important.
In a nutshell, this is what you should be aware of:
In Portugal, there are several types of employment contracts that employers can offer to their employees. These include:
In Portugal, the standard working week is 40 hours, with a maximum of 8 hours per day. Overtime may be required, but it should not exceed 150 hours per year. Employees are entitled to 22 paid leave days per year, which can increase to 25 days after 10 years of service.
Terminating an employment contract in Portugal must follow the legal requirements outlined in the labor laws. Notice periods are typically required, with longer notice periods for employees with longer service. Severance pay may also be required based on the length of service.
So, what have we learned today? This quick summary should provide you with a clear outline of how to hire, recruit, and ensure compliance with Portuguese employees. Nevertheless, don't hesitate to ask for professional legal advice whenever you feel like you're out of your league, as the information listed in this article can be subject to changes.
Now that you've gone through our guide for hiring employees in Portugal, you're finally ready to make the most of one of the most skilled, cost-effective, and professional labor forces in Europe!