Female employees are entitled to 120 days of maternity leave at 100% pay, or 150 days at 80% pay. The leave must include at least 6 weeks taken after the birth.

Maternity benefits are paid through the Portuguese social security system. Employees must have a minimum contribution period to qualify for full benefits.

Fathers are entitled to 28 consecutive days of paternity leave, of which 20 days are mandatory. The mandatory days must include 7 consecutive days immediately following the birth.

Paternity leave is paid at 100% through the social security system.

Employees are entitled to sick leave for up to 1,095 days. Sick pay is provided through social security at the following rates:

• 55% of reference pay for the first 30 days
• 60% from day 31 to day 90
• 70% from day 91 to day 365
• 75% beyond 365 days

A medical certificate is required to qualify for sick leave benefits. There is a 3-day waiting period before benefits commence.

Employees are entitled to bereavement leave as follows:

• 5 consecutive days for the death of a spouse, parent, or child
• 2 consecutive days for the death of other relatives

There is no at-will termination in Portugal. Employers must have just cause to terminate an employment contract. Portuguese labor law strongly protects employees against unfair dismissal.

Valid grounds for termination include:

• Serious disciplinary misconduct
• Collective dismissal for economic reasons
• Elimination of the job position
• Employee unsuitability for the role

Notice periods in Portugal depend on the employee's length of service:

• Up to 1 year of service: 15 days notice
• 1 to 5 years of service: 30 days notice
• 5 to 10 years of service: 60 days notice
• Over 10 years of service: 75 days notice

Employees wishing to resign must provide 30 days notice (up to 2 years of service) or 60 days notice (over 2 years of service).

For contracts entered into after October 2013, severance pay is calculated at 14 days of base salary and seniority payments per year of service.

Employees dismissed without just cause or through collective dismissal are entitled to severance compensation. Upon termination, employees must also be compensated for any unused vacation time and proportional holiday and Christmas subsidies.

Employees are entitled to a minimum of 22 working days of paid annual leave per year. This entitlement is established from the start of the employment contract.

Annual leave must be taken within the calendar year and cannot be replaced by monetary compensation, except upon termination of the employment contract.

Portugal observes 13 official public holidays annually.

National public holidays include:

• New Year's Day (January 1)
• Carnival (variable - February/March)
• Good Friday (variable)
• Easter Sunday (variable)
• Liberty Day (April 25)
• Labour Day (May 1)
• Corpus Christi (variable)
• Portugal Day (June 10)
• Assumption of Mary (August 15)
• Republic Day (October 5)
• All Saints' Day (November 1)
• Restoration of Independence (December 1)
• Immaculate Conception (December 8)
• Christmas Day (December 25)

The onboarding process is typically completed within 2-5 business days following client execution of the Statement of Work.

Salaries in Portugal are paid on a monthly basis, with 14 payments per year. Employers are legally required to provide a 13th month payment (Christmas subsidy) and a 14th month payment (vacation subsidy).

The 13th month salary is paid in December and the 14th month salary is paid before the employee takes their annual vacation. Both are mandatory under Portuguese labor law and are equal to one month's base salary.

Employment contracts in Portugal can be either fixed-term or indefinite-term. Written contracts are required for fixed-term employment agreements and must be drafted in Portuguese.

Essential contract elements include:

• Employee and employer identification
• Commencement date
• Job title and description
• Compensation and benefits
• Working hours and schedule
• Duration (for fixed-term contracts)
• Termination provisions

Fixed-term contracts can be renewed up to three times and have a maximum duration of 2 years (or 3 years in certain circumstances). Indefinite-term contracts are the default form of employment.

Probation periods in Portugal vary based on the complexity of the role:

• 90 days for general employees
• 180 days for employees in complex technical roles
• 240 days for management and senior leadership positions

During the probation period, either party may terminate the employment relationship without providing a specific reason or notice, unless the probation has lasted more than 60 days (in which case 7 days notice is required) or more than 120 days (15 days notice required).