PORTUGAL Law and Practice Contributed by: Nuno Ferreira Morgado and Júlia Mendes da Costa, PLMJ
1.5 Other Employment Terms Annual Leave (Holidays)
Part-time employees are entitled to the same condi - tions as full-time employees on a pro rata basis, and have the right not to be discriminated against due to their status. Overtime Work done over the maximum weekly and daily limits qualifies as overtime. Overtime work is only admis - sible when requested by the employer if it is needed to face extraordinary circumstances or an increase in workload, or if the work is to prevent or repair damage to assets. However, there are some limits depending on the number of employees and type of contract. A collective bargaining agreement (CBA) may establish higher ceilings. Overtime work entitles the employee to additional pay. This is a rate of 25%, of the ordinary hour, during the first hour and 37.5% during the following hours on the normal working days; and 50% on public holidays and rest days. Overtime worked over 100 hours per year is paid at the rate of 50% for the first hour or part thereof and 75% for each additional hour or part thereof worked on a normal working day; and 100% for each hour or part thereof worked on public holidays and rest days. It also entitles them to time off equivalent to one full day in the case of overtime on a mandatory rest day (usually Sunday). CBAs may establish a more benefi - cial treatment for the employee. 1.4 Compensation There is a minimum national salary (EUR870 for 2025) set by law. Collective labour agreements may set out higher salaries in a specific sector, group of compa - nies and/or company. In Portugal, there are 14 payments, 12 salaries, one holiday bonus and one Christmas bonus. It is optional to pay variable salaries and companies are free to set out their own terms and conditions as long as they ensure that these are objective and non-discrimina - tory.
All employees are entitled to a minimum of 22 working days’ annual leave. During the first year of employ - ment, employees are entitled to two working days for each month of the duration of their contract, up to 20 working days, which may be taken after six months’ full performance of the contract. During holiday periods, employees are entitled to their normal monthly remuneration plus a holiday allow - ance, typically of the same amount. Parental Leave Upon the birth of their child, both parents are enti - tled to initial parental leave of 120 or 150 consecutive days, to be shared between mother and father. The leave can be enjoyed simultaneously by both parents between the 120th and 150th days. The leave may be increased by 30 days if each of the parents enjoys, exclusively, a period of 30 consecutive days, or two periods of 15 consecutive days, follow - ing the mandatory period of six weeks following the childbirth to be enjoyed exclusively by the mother. In the case of multiple births (eg, twins), the duration of the initial parental leave is increased by 30 days for each child beyond the first one. Fathers are entitled to take parental leave after birth of 28 days (consecutive or in interpolated periods of at least seven days), within 42 days of the birth (seven of which must be taken immediately after the birth). The paternity leave may be extended for seven more days provided it is taken at the same time as the mother’s initial parental leave. During the parental leave, the employer is not obliged to pay remuneration, as the Social Security pays an allowance. This period of leave cannot prejudice the position of the woman concerning any of the remain - ing entitlements, notably those dependent on attend - ance at work. Parents are entitled to extended parental leave, up to three months, to be taken after the initial paren - tal leave. Following this extended leave, parents are also entitled to leave within the first two years of the
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