Portugal Employment Law

The standard working hours shall not exceed 8 hours a day and 40 hours a week (exclusive of overtime). 

The average weekly working time, including overtime, cannot exceed 48 hours, in a reference period established in a collective labor regulation agreement that does not exceed 12 months or fails this in a reference period of 4 months. In calculating the average, annual leave is subtracted from the reference period in which they are taken. The days of absence due to illness and the days of parental leave, initial or complementary, and days off to assist children with disabilities or chronic illness are considered hours worked for the reference period.

Reference period – The average duration of work is calculated by reference to a period established in a collective labor regulation that is not longer than 12 months or, failing that, a period of 4 months.

Work Schedule – Working hours are basically the determination of the start and end times of the normal daily work period and the rest interval, as well as the weekly rest. The beginning and end of the normal daily work period may occur on consecutive days. The employer prepares the work schedule taking into account the legal provisions and the applicable collective labor regulation, which must include:

1. • Company name or name of the employer;
   • An activity carried out;
   • Headquarters and place of work of the employees to which the timetable relates;
   • Beginning and end of the period of operation and, if any, day of closure or suspension of operation of the company or establishment;
   • Start and end times of normal work periods, with an indication of rest intervals;
   • Mandatory weekly rest day and complementary weekly rest, if any
   • Applicable collective labor regulation, if any;
   • Scheme resulting from an agreement establishing work hours on an adaptable basis, if any.

When the schedule given is not common to all employees, the work schedule must contain the identification of employees whose regime is different from that established for the others. Whenever the work schedule includes shifts, the map must also indicate the number of shifts and those in which there are minors, as well as the rotation scale, if any. The composition of shifts, in accordance with the respective scale, if any, is recorded in a specific book or in computerized form and forms an integral part of the working schedule.

Increasing Working Hours Limit – Through the collective agreement the daily limit of 8 hours may be increased up to 4 hours and the duration of weekly work of 40 hours may be increased to reach 60 hours, not counting extra hours worked due to unforeseeable circumstances. The normal working period under such an agreement may not exceed 50 hours on average over a period of two months.

An agreement between the employer and employee may increase the normal period of daily work up to 2 hours and for weekly work to reach 50 hours, not counting extra hours worked due to unforeseeable circumstances. If an employee works less than 40 hours in a week, the reduced hours of work per day may not be more than 2 hours a day with the provision of a meal break. Such reduction of hours may be changed based on agreement.

For an employee who exclusively works on weekly rest days, the work hours of such an employee may be increased up to 4 hours a day.

The normal daily working hours may be increased up to 4 hours a day:

• • • by agreement between employer and employee or by collective regulation agreement, wherein the normal working week will be a maximum of 4 working days.
    • by collective regulation agreement, to create a work schedule that contains a maximum of 3 consecutive days of work, followed by a minimum of 2 days of rest, wherein the normal weekly period remains at 40 hours, on average, in a 45-day reference period employer via a collective agreement.

An employee will be provided with a 15-minute tolerance (additional time) for any kind of operation or task that was started but not finished during the duration of normal daily working hours. Such tolerance is exceptional and the additional work done shall be paid if such duration is 4 hours or more at the end of the calendar year.

Working Hour Maps – The employer shall draw up a working hour map/ schedule taking into account the legal provisions and the applicable collective labor regulation instrument, which must include, the name of the employer, activity performed, address of workplace, start and end of the period of work and, if any, day of closure or suspension of operation of the workplace, hours of beginning and end of normal working periods, with the indication of rest intervals, mandatory weekly rest day and complimentary weekly rest, if any, etc.

Whenever the work schedule includes shifts, the map must also indicate the number of shifts and those in which there are fewer and the rotation scale, if any. According to the respective scale, the composition of the shifts is recorded in a specific book or computerized form and is an integral part of the work schedule.

The employer shall display the work schedule in the workplace to which it relates, in a very visible place. Labor Code, Law No. 7/2009, Sec 203-207, 209, 215.

Work Time Banking – An hour bank regime may be instituted by means of collective labor regulation. The normal working hours may be increased up to 4 hours a day and may reach 60 hours a week, with an increase of up to 200 hundred hours per year.

Such a work-hour banking regime may be applied as group time banking to all team, section, or economic unit employees. In such a regime, the normal period of work may be increased to 2 hours per day and may reach 50 hours per week, with the addition of a limit of 150 hours per year. Labor Code, Law No. 7/2009, Sec 208 & 210.

Part-time Work – Part-time work is considered to be work that corresponds to a normal weekly working period shorter than that practiced full-time in a comparable situation. If the normal working period is not the same in each week, the respective average in the applicable reference period is considered. Part-time work can only be provided on a few days per week, per month, or per year, and the number of working days must be established by agreement. 

A part-time employee may start working full-time, or vice versa, permanently or for a specified period, by means of a written agreement with the employer. The employee may terminate the agreement by means of a written communication sent to the employer up to the 7th day following the conclusion. Labor Code, Law No. 7/2009, Sec 157-159.

Shift Work – Different employee shifts must be organized whenever the period of operation exceeds the maximum limits of the normal working period. Shifts must, as far as possible, be organized according to the interests and preferences expressed by employees. The duration of work for each shift cannot exceed the maximum limits of normal working periods. The employee can only change their assigned shift after the weekly rest day.

In case of shift work of a continuous nature, work shall be organized in such a way that the employee shall be entitled to 1-day rest in every 7-day period. The employer must have a separate record of the employees included in each shift. Labor Code, Law No. 7/2009, Sec 220-221.

Recording Requirement – The employer must keep a record of working hours which must contain the indication of the start and end times of the working time, as well as of the interruptions or intervals that are not included in it, in order to determine the number of hours worked per employee, per day and per week.

The employer must have a register of overtime work in which, before the start of overtime work and immediately after its end, the hours at which each of the situations occurs are noted. The employer must keep a record of working hours for 5 years. Labor Code, Law No. 7/2009, Sec 202, 231.

Any work performed beyond the standard working hours (8 hours per day or 40 hours per week) shall be considered as overtime work. The maximum duration of overtime work an employee can perform is –

• • • In the case of a micro or small business, 175 hours per year;
    • In the case of a medium or large business 150 hours per year;
    • In the case of a part-time employee, 80 hours per year or the number of hours corresponding to the proportion between the respective normal period of work and that of a full-time employee in a comparable situation, when higher;
    • On a normal working day, 2 hours;
    • On a weekly, mandatory, or complementary day of rest, or a public holiday, a number of hours equal to the normal daily work period i.e. 8 hours;
    • In a half-day of complementary rest, a number of hours equals half a normal daily work period.

The yearly limit may be increased up to 200 hours per year, by means of collective labor regulation. The yearly limit for part-time employees may be increased, by a written agreement up to 130 hours per year or, by collective labor regulation, up to 200 hours a year.

The employer must have a register for overtime work. If the registration of overtime work is violated, the employee will be provided, for each day in which he has worked outside working hours, the right to remuneration corresponding to 2 hours of overtime.

Overtime Exception – The notion of overtime does not include:

• • • • Work performed by an employee exempt from working hours on a normal working day
      • The amount provided to compensate for suspension of activity, regardless of its cause, of a duration, not exceeding 48 hours, followed by a day of rest or holiday, by agreement between the employer and the employee.
      • The 15 additional minutes of tolerance provided for an operation or task that was started but not finished during the duration of normal daily working hours.
      • Professional training carried out outside working hours that do not exceed 2 hours a day;
      • Work performed to compensate for periods of absence from work carried out at the initiative of the employee provided that both have the agreement of the employer.
      • The work was performed to compensate for vacation termination.

Compensatory Rest for Overtime Work – The employee who provides overtime work that prevents the enjoyment of daily rest is entitled to paid compensatory rest equivalent to the missing hours of rest, to be taken on one of the 3 following working days.

The employee who works on a mandatory weekly rest day is entitled to a paid compensatory rest day, to be taken on one of the following three working days. Compensatory rest is defined as an agreement between the employee and employer or, failing that, by the employer.

Pay for Overtime – An employee shall be entitled be overtime pay in the following manner – 

Overtime work of up to 100 hours per year is paid at the hourly rate with the following additions:

• • • 25% for the first hour or fraction thereof and 37.5% per subsequent hour or fraction thereof, on a business day;
    • 50% for each hour or fraction thereof, on a mandatory or complementary weekly rest day, or on a public holiday.

Overtime work exceeding 100 hours per year is paid at the hourly rate with the following additions:

• • • • 50% for the first hour or fraction thereof and 75% for each hour or subsequent fraction, on a working day;
      • 100% for each hour or fraction thereof, on a mandatory or complementary weekly rest day, or on a public holiday.

Labor Code, Law No. 7/2009, Sec 226-230, 268.

Night work is considered to be performed in a period that has a minimum duration of 7 hours and a maximum duration of 11 hours. Night work hours are between 10 pm and 7 am, including the hours between 12 am and 5 am.

The period of night work may be determined by a CBA, in compliance with the duration given above. In the absence of such determination, it shall be considered as the period between 10 pm on one day and 7 am on the following day.

Night employees are considered to be those who provide at least 3 hours of normal night work each day. The normal daily work period for night employees, must not exceed 8 hours per day, on a weekly average. The mandatory or complementary weekly rest days and public holidays are not counted in calculating the weekly average.

The night employee must not perform more than 8 hours of work in a 24-hour period in which they perform night work, in any of the following activities, which entail special risks or significant physical or mental tension.

Pay for Night Work

Employees who perform work at night will be entitled to a premium of 25% on the regular rate of pay.  The increase of 25 % may be replaced, through a collective labor regulation instrument, by:

• • • Equivalent reduction in the normal working period;
    • Fixed increase of the basic pay, provided that it does not imply less favorable treatment for the employee.

Exception

The provisions of pay for Night Work shall not apply unless provided for in a collective labor agreement in scenarios where work is performed exclusively at night or in work related to tourism, hospitality, and healthcare. Also, work at night shall not be remunerated, when the payment established for the employee is done so exclusively for night work. Labor Code, Law No. 7/2009, Sec 223 – 224 and 266.

The employee shall be entitled to an unpaid rest break after 5 consecutive hours of work, of a duration of not less than 1 hour or more than 2 hours. If the working hours exceed 10 hours in a day the employee will be entitled to break after 6 hours of consecutive work.

The break is considered part of working where an employee is required to stay in the usual working space or close to it, in order to be able to perform normal work in case of need. Labor Code, Law No. 7/2009, Sec 213, 197.

Daily Rest – The employee shall be entitled to a rest period of at least 11 consecutive hours between 2 consecutive daily periods of work.

Weekly Rest – The employee shall be entitled to at least 1 day of rest per week. Sunday is the weekly rest day required by law, although in some jobs it is permissible to work on Sunday. The mandatory weekly rest and the period of 11 hours of daily rest must be taken in continuity.

The mandatory weekly rest day is not compulsorily required to be on Sunday. When the employee works in a company or sector of a company that is exempt from closing or suspending operations for one full day a week, or that is obliged to close or suspend operations on a day other than Sunday.

Cumulation of weekly rest and daily rest

Mandatory weekly rest and a period of 11 hours corresponding to the daily rest established must be taken continuously. The period of 11 hours of daily rest is considered fulfilled, in whole or in part, by the complementary weekly rest taken in continuity with the mandatory weekly rest.

The mandatory weekly rest and the period of 11 hours of daily rest must be taken in continuity.

The employee who works on a mandatory weekly rest day is entitled to a paid compensatory rest day, to be taken on one of the following three working days. Compensatory rest is defined as an agreement between the employee and employer or, failing that, by the employer.

Compensatory Rest from Overtime on Daily Rest

An employee who provides overtime work during the period of daily rest shall be entitled to compensatory rest equivalent to the rest hours so lost and shall be taken on one of the following 3 working days.

The daily rest entitlement is not applicable to the employee in administrative or managerial positions when due to unavoidable circumstances employee has to provide work on a daily rest day, or a day of work is divided throughout the day for more than one activity, or when there is a requirement of continuity of production or service provided an equivalent period of compensatory rest will be provided. Labor Code, Law No. 7/2009, Sec 214.

Compensatory Rest for work on mandatory Weekly Rest – The employee who works on a mandatory weekly rest day is entitled to a paid compensatory rest day, to be taken on one of the following three working days. Compensatory rest is defined as an agreement between the employee and employer or, failing that, by the employer.

Pay for Overtime on Weekly Rest – Employees who perform overtime work on a mandatory or complementary weekly rest day of up to 100 hours per year are entitled to a premium of 50% for each hour or fraction thereof, at the hourly rate. Employees who perform work exceeding 100 hours per year on a mandatory or compensatory weekly rest day shall be entitled to a 100% premium for each hour or fraction thereof at the hourly rate.

In addition to premium pay, if the employee works overtime on Sunday, they are entitled to a day of paid compensatory rest on one of the following 3 days.  Labor Code, Law No. 7/2009, Sec 232-233, 268.