Are you familiar with the different types of employment contracts in force in Portugal? Understanding how these contracts work is important, as their terms determine the nature of the employment relationship.

In this article, we briefly explain the main characteristics of these contracts.

Keep reading to find out more!

Employment Contracts: Discover the Main Types Available in Portugal

There are different types of employment contracts designed for different professional situations. Their terms define the relationship between employees and employers. (retirar este artigo)

Understanding what each type of contract entails is important, as it helps ensure greater security and transparency in the employment relationship.

Below, we explain the main features of the different types of employment contracts available in Portugal.

Fixed-term employment contract

Under this type of contract, a start date and an end date are established. It is generally used by companies that need employees for a specific project or to meet a temporary staffing need.

Its duration may generally range from 6 to 12 months, with the possibility of renewal, subject to the conditions established by law.

Uncertain-term employment contract

Unlike the previous type, an uncertain-term employment contract does not establish a specific end date.

In other words, there is a start date, but the end of the contract depends on the occurrence of a specific event or the end of the situation that justified the contract. It is commonly used to replace an employee who is absent when there is no defined return date.

Permanent employment contract

Similar to an uncertain-term contract, a permanent employment contract does not have a predetermined end date.

Its duration is therefore indefinite.

If the contract is terminated during the probationary period, the parties may, in certain circumstances provided for by law, not be required to give prior notice or pay compensation.

Short-term employment contract

As the name suggests, these employment contracts are used for short periods of work, particularly in certain situations specifically provided for by Portuguese legislation.

Very short-term employment contract

The main feature of this type of contract is its maximum duration, which can be up to 15 days.

It is particularly common in certain agricultural activities, such as seasonal harvesting periods.

Service provision contract

A service provision contract establishes a relationship between a self-employed worker and a company, without, in principle, creating the same type of legal subordination that exists under an employment contract.

This arrangement gives the worker greater freedom regarding how the work is organised and carried out. However, the worker remains responsible for providing the agreed service or delivering the agreed result to the client.

Part-time employment contract

This type of contract establishes a number of working hours that is lower than that of a full-time position.

The employee may therefore work part of the day, on certain days of the week or during specific periods of the year, depending on the agreed terms.

Part-time work involves a working schedule shorter than that of a comparable full-time employee.

Temporary agency work contract

This type of contract is commonly used by companies that hire temporary workers to provide services to third-party companies. (retirar este artigo)

In this situation, the employment relationship is established with the temporary work agency, even though the worker actually performs their duties for another company.

Intermittent employment contract

This type of contract allows the employee to work intermittently, with periods of work alternating with periods of inactivity throughout the year.

For this type of contract to be valid, the working periods must comply with the minimum requirements established by law, particularly regarding their duration.

Employment contract for foreign workers

Foreign workers may be subject to different requirements depending on their nationality and legal status in Portugal.

When a worker is a citizen of another European Union country, the rules applicable to them are, in principle, similar to those applicable to Portuguese workers.

For nationals of countries outside the European Union, additional requirements may apply, particularly regarding residence documents and authorisation to work in Portugal.

Employment contract with multiple employers

Under this arrangement, a worker may provide services to several companies belonging to the same corporate group or meeting the conditions established by law for this type of employment relationship.

Commissioned-service employment contract

Commissioned-service employment contracts are mainly intended for certain management, administrative or positions of trust.

They allow an employee to temporarily perform specific duties under the terms established in the contract and applicable legislation.

Telework employment contract

Under this arrangement, the employee performs their work remotely rather than being physically present at the company’s premises.

The work is generally carried out using a computer, telephone and other remote communication tools. This is a form of remote working, often referred to as home office.

Promise of employment contract

A promise of an employment contract may be used, in particular, by foreign workers who need to obtain a visa or complete administrative procedures before they can legally work in Portugal.

In practice, once a candidate has been selected, the employer may provide a promise of an employment contract to support certain procedures relating to the worker’s entry into and residence in Portugal.

Pre-retirement agreement

This type of arrangement applies to workers who meet the legal requirements for a pre-retirement scheme.

It may allow for a reduction in working hours while maintaining the payment of remuneration according to the terms agreed between the employee and employer.

Both employers and employees should be familiar with the characteristics of the different types of employment contracts in order to ensure that their employment relationship complies with Portuguese legislation.

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