How is payroll managed in Portugal?

In Portugal, it is customary for employers to distribute 13th and 14th month payments. This approach doesn’t incur additional expenses for the employer as the annual salary is evenly divided into 14 parts: employees receive one part each month, with an extra portion paid in both June and December.

What are the standard employment regulations?

Maternity Leave in Portugal is financed by the Portuguese Social Security System. Mothers are entitled to 100% pay for 120 consecutive days, with a maximum of 30 days permissible before the due date and a minimum of 42 days after the birth. This period can be extended to 150 days if both parents take 30 days of leave simultaneously.

What should be considered when dismissing an employee?

To lawfully terminate an employment contract in Portugal, a rigorous process must be adhered to. This includes providing written notice to the employee and the Ministry of Labour. As there are various grounds and possible procedures for dismissal, it is advisable to consult with a member of our employment law team before proceeding.