Employ Candidates Compliantly in Portugal

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  1. Overview: Portugal
  2. Global HR Compliance
  3. Global PEO and payroll
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
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Global HR Compliance in Portugal

If you hire an international workforce, or plan to hire, then Hiring and Firing Workforce in Portugal Guide below will help you understand the nuances of labor legislation in the country.

When the company is planning to enter a new foreign market of Portugal and has a need to employ a local national there, the first question to answer is how it is going to make local hires.

We have designed a Global Employer of Record service to help you outsource global employment of your foreign workforce to companies like ours.

This solution helps you employ your global sales force in Portugal as well as in other 190+ countries of the world, and provide pay and benefits to your employees, as well as administer any business expenses with our help.

Our solution is different from other hiring modes in that it helps you engage your foreign workforce in full compliance with the local labor legislation. This means you are protected from any non-compliance and employee misclassification risks while we bear all employment risks, not you.

So, it looks very much like hiring your in-house sales force in your home country. However, you focus on only on your global business development while we admin your global HR. In addition, you don’t need to open your own entities in the foreign countries and can leverage our infrastructure in Portugal instead. With our service, you can become a global company with reduced costs and minimized time and effort on your end.

Your employed foreign sales force will devote 100% of their time to your company product and may stay with you longer than foreign independent sales reps.

Global Employer of Record solution is 100% compliant solution that guarantees you and your employees fully compliance with local legislation in Portugal .

We are experts in global workforce employment in Portugal, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.

Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.

With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Portugal.

See Hiring and Firing Workforce in Portugal Guide below for a general overview of labor rules and regulations in the country. Or contact us if you need to employ workers in Portugal or would like to get more details.

Firing and Hiring Workforce in Portugal Guide

All things considered, the processes involved in operating business in Portugal can be so convoluted and cumbersome that it can make it almost impossible for any foreign business to thrive on its own without an external help. Apart from the bureaucratic procedures for starting business in Portugal, there is need for one to familiarize, understand and comply with the labor laws of the country, or otherwise face the stiff penalties of breaking any of the legal requirements.

The good news is that Acumen International, a global Professional Employer Organization (PEO) has designed a workable solution that can help you work through the long-involved processes of doing business in Portugal.
Before we proceed to explore how Acumen International can help you expand to and succeed in Portugal, we will first consider a few fundamental things about employment in Portugal.

# Contracts
The different types of contract in Portugal are fixed-term contracts, indefinite contracts, intermittent contracts, part-time employment contracts and contracts of very short duration. As a prerequisite to enter a working relationship with someone, an employer must give a written contact to his employee who is employed on a fixed-term, teleworking, intermittent or part-time basis. Also, all employment contracts with expatriate workers must be concluded in writing. Any other contract, save the aforementioned may not be concluded in writing.

Minimum statutory employment rights

# Hour of work
The normative working hours in Portugal are 8 hours per day and 40 hours per week. These hours can be extended or contracted with good reasons. An individual contract may be increased by up to 2 hours per day and up to 10 hours per week. In the case where collective agreement is applicable, an employee’s working hour may be extended up to 12 hours per workday and 60 hours per work week, provided that the total hours worked per week do not exceed 50 hours when averaged over a period of two years. Night shift hours are limited to 11 hours per day. During a normal working time, an employee may not be permitted to work more than 5 hours in a row without taking an hour or 2 rest. Also, an employer must give his employee a minimum of 11 hours of undisturbed rest between every 2 workdays.

# Probationary period
Generally, the duration of a probation is dependent on the type of contract the employee is holding. Probationary period for fixed-term contracts is 15 days for contracts of less than 6 months duration or 30 days for contracts that are fixed for 6 months or more duration. Probationary period for open-ended contracts is 90 days for ordinary employees, 180 days for non-top management workers whose positions are either too complex or sensitive and 240 for employees in top management positions. The length of any employee’s trial time can be reduced if clearly provided for in the individual contract or collective agreement.

# Annual leave
Employees are entitled to 9 paid public holidays which include New Year’s Day, Good Friday, Easter Sunday, Liberation Day, Labor Day, Portugal Day, Assumption Day, All Saints Day, Immaculate Conception Day and Christmas. Extra holidays may be provided by different regions. Employees must be given at least 22 days of paid leave each year. Employees who are within their first year of employment in the company, and have stayed at least 6 months may be given 2 days of paid leave for each month of service.

# Parental leave
Employees expecting a new baby are entitled to paternity leave. Parental leave can be given for 120 days with 100% pay or 150 days with 80% pay and employees must of their own will choose which of the options to go with. According to the country’s employment law, the initial prenatal (up to 30 days) leave and the 6 weeks postnatal leave are solely reserved for the mother of the new baby. The remaining days of the leave can be shared between the mother and father of the new baby.

# Sick leave
Sick leave benefits are available to all employees who have contributed to the social security for at least 6 months, of which 12 days must be from the last 4 months preceding the sick period.

# Overtime
The maximum permissible overtime per annum is 150 hours for large businesses or 175 hours for small businesses. These number of hours can be increased to 200 hours maximum by the collective agreement.

# State minimum salary
The minimum monthly wage in Portugal as of 2017 is 649.83 EUR. Employees remuneration must be paid every fortnight or even in a shorter installment.

# Employment termination
Depending on the actual years of employment in a company, employees with indefinite contract must be given from 15 to 75 days prior notice upon termination. Employees with fixed-term contract must be given 15 days’ or 30 days’ notice for less than six months’ contract or at least six months’ contract respectively. Employees who have stayed in a company for up to 2 years must be given 30 days of notice, whereas those who have work for more than 2 years must be given 60 days of notice period. Employees may be provided with compensation in lieu of the required notice period.

Acumen International can help you fast-track your possibilities of entering and expanding your business in Portugal by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any requirement to set up a legal entity first or thereafter.

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