Labor aspects to take into account in Portugal

As we all know, vacations are a fundamental aspect of any worker’s labor rights. In this article from UR Global we want to inform you about it, and also summarize the labor aspects to take into account if you want to hire or be employed in  employed in Portugal.

General Provisions on Remuneration

• Remuneration includes all benefits to which the worker is entitled under the employment contract, including regular and periodic payments, whether in cash or in kind.
• Certain concepts such as per diems, extraordinary bonuses and benefits linked to performance or professional merit are excluded from remuneration.
• The employer must provide the worker with a document detailing his or her remuneration, discounts and deductions.

The holidays

Every calendar year, the worker is entitled to a period of paid vacation of at least 22 working days, which must be used before January 1 of the following year.

The holidays will be enjoyed in the calendar year in which they correspond, except in the following cases:

– They may be enjoyed until April 30 of the following calendar year, accumulating or not with the vacations that correspond to the beginning of the latter, by agreement between employer and worker or whenever the latter wishes to enjoy them with a family member residing abroad.

– The half of the vacation period corresponding to the previous year can also be taken as a complement to the vacation period corresponding to the year in question, with prior agreement between the employer and the worker.

– In the year of entry, the worker has the right to two working days of vacation for each month of contract duration, up to 20 days, which can be enjoyed once six full months of contract duration have elapsed. contract.

– In the event that the calendar year ends before the period referred to in the previous number has elapsed, the vacations will be enjoyed before June 30 of the following year, and may not give rise to more than 30 business days of vacations being enjoyed in the same calendar year, without prejudice to the provisions of the collective agreement.

MODIFICATION OF THE VACATION PERIOD FOR REASONS RELATED TO THE COMPANY

The employer may modify the vacation period previously established or interrupt vacations that have already started due to urgent needs of the company. In this case, the worker has the right to compensation for the inconvenience caused by not being able to enjoy the vacation in the originally scheduled period.

The interruption of vacations must allow successive enjoyment of half of the period to which the worker is entitled.

In the event of termination of the contract of work subject to notice, the employer may modify the appointment of vacations, stipulating that they must be taken immediately before termination.

Remuneration, payments in kind

In addition to the base salary, all regular and periodic payments made, whether directly or indirectly, in cash or in kind are considered remuneration. It is presumed that any payment made by the employer to the worker constitutes remuneration.

Workers have the right to Christmas pay equivalent to one month’s salary, which is paid before December 15 of each year, adjusted for seniority in the calendar year.

The remuneration for the vacation period corresponds to what the worker would receive if he were on effective service.

In addition to vacation pay, the worker has the right to compensation that includes the base salary and other remuneration, corresponding to the minimum duration of the vacation.

Other work aspects to take into account

Taxation of Benefits on Company Vehicle Expenses

In the work environment, the use of company vehicles is an aspect of utmost importance for both employers and workers. In the case of company vehicles, their use not only entails labor benefits, but also tax implications for the worker. 

Absence Policies in the workplace

On the other hand, absences, whether they are justified or unjustified, must be handled diligently by both parties, as they can influence productivity and the achievement of objectives.

For additional information, please do not hesitate to contact your trusted advisor at UR Global.