Employment contracts
in Portugal.

SALARY PAYMENT IN Euro (EUR, €)

CONTRACT LANGUAGES Portuguese / English

PAYROLL TAX 26.50%

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours
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Horizons-owned entity with local country experts in Lisbon.

We offer fair, scalable, and transparent pricing on Portugal PEO service. Contact us for a cost breakdown

End service in Portugal with no additional penalties or fees.

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Portugal

Standard employment contract in Portugal: Open-ended contract

Indefinite-term contracts are by far the most common type of employment contract in Portugal. These contracts provide employees with more robust protections than fixed-term contracts and it is more difficult to terminate employees on these contracts.

Alternative employment contract in Portugal: Temporary contract

Fixed-term contracts are only possible in certain cases where they can be justified by a certain situation: replacing an absent employee (such as someone on parental leave), and to complete a specific temporary project.

Are there other types of employment contracts in Portugal?

There are several other types of employment contracts available in Portugal, including:

Contract of employment of unspecified duration
Short duration contract of employment
Part-time contract of employment
Provision of services

These employment contract types are less relevant for companies looking to do business internationally in Portugal. If you are an international company looking to hire in Portugal, it is recommended to go with an open-ended contract.

Hiring in Portugal, Made Easy

Your business can easily hire employees in Portugal without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

What are the main differences between the standard contract and the alternative contract in Portugal?

The standard employment contract in Portugal is an open-ended contract. The open-ended contract is what is used most often in EOR setups.

The alternative employment contract in Portugal is the limited or temporary contract. This contract is only to be used in specific situations such as:

Replacement of absent EE (e.g. maternity cover)
Seasonal activity
Exceptional increase of activity
Occasional task that is non-durable and precisely defined
Monitoring of public work

The main differences between the standard and alternative employment contracts in Portugal are:

The scope of the contract; the standard (open-ended) contract can be used in many more versatile situations compared to the alternative (temporary) contract.
Termination procedures; given the limited nature of temporary contracts, it is much easier to terminate employment from both sides.

Note that if an employee is on a temporary contract (maximum duration 2 years), and their contract is renewed 3 times, it is then automatically converted to an open-ended contract.

Which Portugal employment contract is right for me?

The open-ended contract will be suitable for most hiring projects in Portugal. You can contact us for an assessment of your specific situation.

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"As a seed-stage, London-based startup, we were initially hesitant to expand internationally due to the administrative workload involved. Horizons took the headache out of the process, allowing us to hire a team of software engineers in Germany."

Gabor SzedlakCo-founder & COO at MindLabs (UK)

"I truly appreciated the thoroughness and the professionalism of Horizons personnel while we hired internationally with them. They were knowledgable on all subject matters pertaining to international employment."

Gary PaskyVP Software Development, PICS ITech (USA)

"On deciding to begin commercial activities in Asia Pacific, we needed a provider to handle the employment and remuneration of our workforce. With Horizons the result was fast, efficient, and fit-for-purpose. We recommend Horizons as an EOR provider.”

Chris MorrellManaging Director, Schaeffler Group (Germany)

"The collaboration with the Horizons team is excellent. Both our local employee as well as our HQ in Germany are more than pleased with the support provided and the simplicity of the service. We can highly recommend the Horizons solution to anyone."

Christoph EngelbertCo-Founder & CTO, Clevabit (Germany)

"We needed an EOR that could provide expert support for payroll in APAC. We are pleased with Horizons’ expertise and the fact that they are flexible, responsive, and easily accessible from Belgium. They were able to provide services within the short timeline we required."

Katia FlamandHuman Resources, Devian Chemicals (Belgium)

Employment contracts
in Portugal.

Standard employment contract in Portugal: Open-ended contract

Alternative employment contract in Portugal: Temporary contract

Are there other types of employment contracts in Portugal?

Hiring in Portugal, Made Easy

FAQs

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

180+

100+

24x5

130+

180+

100+

24x5

130+

What to expect when you connect with Horizons

Employment contracts in Portugal.

Standard employment contract in Portugal: Open-ended contract

Alternative employment contract in Portugal: Temporary contract

Are there other types of employment contracts in Portugal?

Hiring in Portugal, Made Easy

FAQs

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

180+

100+

24x5

130+

180+

100+

24x5

130+

What to expect when you connect with Horizons

Employment contracts
in Portugal.