What are the standard working hours in Portugal?

Ordinary working hours in Portugal are 8 hours per day and 40 hours per week. The mandatory rest day is Sunday, except where the company is authorized to operate on Sundays.

However, through the employment agreement, an employee may agree to work under an adaptability regime, where the normal working period is defined on an average basis:

• In this regime, the normal daily work period may be increased by up to 2 hours, and the weekly work period may reach 50 hours, not counting overtime work performed due to force majeure.
• During a week where the duration of work is less than 40 hours, the reduction may be up to 2 hours per day or, if agreed, in days or half days.
• The average work period is calculated for reference periods of 4 months. This means that over any 4-month period, the average work should equate to 40 hours per week when the normal work period is 40 hours.

There is no extra payment required when the average work period over each 4-month period equals the normal duration of the employee’s work period.

Is overtime governed by law in Portugal? If so, what are the specifics outlined by law?

In Portugal, overtime is governed by law with several specific guidelines:

• Maximum Overtime: Employees can work up to 150 hours of overtime annually. This limit may extend to 175 hours based on the company's size.

• Mandatory Rest Days: Employees who work on a mandatory rest day, often Sunday as set by the employer, are entitled to a full paid day off as compensation.

• Additional Salary for Overtime:
• For overtime exceeding 100 hours annually:

- A minimum of an additional 50% salary for the first hour on a regular working day and 75% for subsequent hours.

- 100% additional salary for work on public holidays and weekly rest days.

• Exclusions: Employees who opt out of the working time limits typically do not receive overtime payments, except for work on weekly rest days and public holidays.

• Conditions for Overtime: Overtime is permitted only under certain conditions, such as a temporary and exceptional increase in work demand or force majeure situations. It requires prior express approval from the employer or should be conducted without giving the employer reasonable grounds for objection.

How is overtime payment calculated in Portugal?

Overtime payment in Portugal is based on the number of overtime hours worked per year and differs depending on whether the overtime is for less than or more than 100 hours annually:

For overtime of less than 100 hours per year:

• Overtime on a normal workday:

- 125% of the normal salary during the first hour of overtime.

- 137.5% of the normal salary for subsequent hours.

• Overtime on a day off or public holiday:

- 150% of the normal salary.

For overtime exceeding 100 hours per year:

• Overtime on a normal workday:

- 150% of the normal salary during the first hour of overtime.

- 175% of the normal salary for subsequent hours.

• Overtime on a day off or public holiday:

- 200% of the normal salary.

How is the time off in lieu payment calculated in Portugal?

Time off in lieu is not legal in Portugal.

How many days before the actual start date should the employment agreement be signed for payroll purposes in Portugal?

The employment agreement should be signed at least 2 business days before the actual start date for payroll purposes in Portugal.

Can employment agreements be backdated in Portugal?

No, employment agreements cannot be backdated in Portugal. A pre-employment medical examination is required between 15 days before and 15 days after the start date of the employment agreement.