The diversified and service-based economy of Portugal is relatively strong and stable. It is ranked 34th in the World Economic Forum’s Global Competitiveness Report for 2019. The key sectors that drive the economy of Portugal are metallurgy, mechanical engineering, machinery, electrical and electronics, textile, forest-based industries, and construction. Portugal is also home to world-renown companies including The Navigator Company (paper), Sonae Indústria (panels), Amorim (cork), Conservas Ramirez (canned food), Cimpor (cement), EDP Renováveis (wind energy), Jerónimo Martins (consumer products), and TAP Air Portugal (airlines). Portugal’s business culture focuses a lot on creating relationships of loyalty and trust.
Employers need to follow the strict employment guidelines set forth by the local authorities before they could employ in Portugal. This process can be time-consuming as the company first needs a legal entity in the country and it needs to manage payroll, tax, benefits and compliance.
Global payroll solutions make it easy to find and hire top talent in Portugal. With one seamless integration and local legal entity, we take care of the compliance matters so that you can start your globelizing plan immediately.
Portugal’s worker classification labour and tax laws distinguish between contractors and full timers. If the individual meets the legal definition of an employee but is classified as a contractor, your company will face penalties.
Employment relationships in Portugal are governed by the Portuguese Constitution, covering matters including the fundamental rights and principles regarding both employees and employers, European legislation, the Portuguese Employment Code, and the Regulation of the Employment Code.
Globelise will be able to help you navigate through the employment process and so that you will be able to offer a competitive and compliance offer to attract and retain your employees in Portugal.
There are 2 main trade union federations in Portugal: General Union of Workers (UGT) and The General Confederation of the Portuguese Workers (CGTP). They work together to protect and enshrine employee rights in Portugal.
Employees may seek their unions for help when they feel that they are unfairly treated or have been non-compliant with their employment terms.
Probation is mandatory in Portugal, and the period depends on the type of employment contract as well as job category, as shown below:
Company or Individuals who are looking to hire talents and run payroll globally
Talents who wants to work compliantly from anywhere