Employment 2025

PORTUGAL Law and Practice Contributed by: Nuno Ferreira Morgado and Júlia Mendes da Costa, PLMJ

• damage to significant financial interests of the employer; • false justification of absence; • unjustified absence causing any damage or serious risks to the employer or unjustified absence for five consecutive days or ten non-consecutive days per calendar year; • wilful non-compliance with the rules concerning security or hygiene conditions at work; • criminal behaviour towards any other employee or officer of the employer; • non-compliance with or opposition to any judicial or administrative decision; and • abnormal decrease in the employee’s productivity. In order to dismiss an employee with just cause, the employer has to begin a disciplinary procedure against the employee. The procedure starts with the employer addressing a written statement of misconduct to the employee containing a full description of the relevant facts, particularly those that may be considered just cause for dismissal. Within ten working days of receipt of this document, the employee may present a written defence and request that the relevant evidence, such as witness statements, be examined. The employer must accede to the requests made in the written defence, or risk the disciplinary procedure being held invalid. After conclusion of these proceedings, the employer must make a final decision within 30 days. Should the employer’s decision be of dismissal, the employer pays no compensation to the employee for the termi - nation of the employment contract, except the legal amounts due for such termination and in respect of the pro rata holiday pay and Christmas bonus due. 7.4 Termination Agreements Employers and employees may terminate employ - ment contracts by means of a mutual agreement. Termination agreements take the form of a docu - ment to be signed by both parties, in two originals, with one to remain with each party. This document should expressly include, at least, the date on which the agreement was signed and the date on which it

is effective. The parties may agree on other effects, provided these are not contrary to the law. Should the parties agree to the employee being paid overall pecuniary compensation, it is assumed that they have included all the credits having matured on the date of the employment contract termination or being payable in reason thereof. The effects of employment contract termination agreements may be revoked at the employee’s initia - tive by notice in writing within seven days of the date on which they were signed. The notice of revocation of termination will only take effect if, together with the notice, the employee delivers or in any way places at their employer’s disposal the entire amount of the pecuniary compensation possibly paid pursuant to the agreement or by reason of the termination of their employment contract. The revocation notice provi - sions do not apply to duly dated employment contract termination agreements when the signatures on them have been certified in the presence of a notary. 7.5 Protected Categories of Employee Any dismissal of pregnant employees, as well as employees who have recently given birth or are breastfeeding and employees with the status of non- formal caregivers, always requires the prior opinion of the equal opportunities authority. If this opinion is not in favour of the dismissal, the employer is only permitted to continue with the dismissal following a court finding of just cause. In addition, the dismissal of any employee who is a workers’ representative is presumed to be made with - out just cause.

8. Disputes 8.1 Wrongful Dismissal

The employee may apply to the Employment Court for a declaration of unlawfulness of the dismissal. The court should declare the unlawfulness of the dismissal in the following situations: • failure to follow a procedure prior to the dismissal;

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