The dismissal of Portuguese employees
is regulated by the Constitution and the Labor Code. Employers are required to terminate all employment agreements by having a fair cause and by observing the type of employment contract that has been concluded with that respective employee.
One of the experts at our law firm in Portugal
can assist you during the dismissal procedure and can help you observe the regulations in force.
Grounds for dismissal in Portugal
The grounds for dismissal in Portugal follow the principle of “fair cause”. This means that an employer is not allowed to dismiss an employee without having a fair reason for the termination of the employment. Likewise, the employee cannot be dismissed because he/she performed poorly unless the necessary disciplinary procedure has already been followed.
The reasons for dismissal in Portugal considered fair cause include the following:
- elimination of job position;
- employment contract expiration;
- collective dismissal;
- inability to adapt;
- unilateral termination.
The reasons for dismissal attributable to the employee are as follows:
- violation of the rights of other employees;
- repeated conflicts with other employees;
- unlawful order disobedience;
- unjustified absence or false statements for absence;
- repeated failure to fulfill the obligations and/or abnormal productivity reduction;
- failure to comply with the company’s administrative of judicial decisions;
- significant damage to the company’s assets.
One of our attorneys in Portugal
can help you understand these grounds for dismissal that are attributed to the employee.
Employment contract termination in Portugal
The Portuguese Labor Law does not impose a general notice period for dismissal. This is only applicable when the employee is unsuitable for the position and in case of collective dismissals. Severance payment applies in Portugal and employers who lawfully dismiss their employees need to take this into consideration.
Collective employee dismissal is possible in Portugal, however, they may be used only in certain circumstances, such as if the company decides to close down an entire section of the business. The collective dismissal may occur due to market reasons, structural reasons or technological reasons. One of our lawyers in Portugal can help you with these types of contract terminations.