Portugal Employer of Record services
Portugal Business Culture
Employer of Record Portugal
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Business Culture in Portugal
Anybody considering visiting or relocating to Portugal should familiarise themselves with the cultural norms.
Southwestern Europe is home to Portugal, a country that is mostly situated on the Iberian Peninsula. It is the westernmost independent European state, with the Atlantic Ocean on two sides and Spain on the other. Both the Azores and Madeira Islands, which are located in the Atlantic Ocean and are governed independently, are considered part of Portugal’s territory.
There is a high standard of living in Portugal due to the country's robust economy. It also excels in terms of safety, democracy, press freedom, stability, social growth, economic prosperity, and English competence, among other categories. According to the World Economic Forum's 2019 Global Competitiveness Report, Portugal's economy is the 34th most competitive in the world.
The Navigator Company (a key player in the international paper industry), Sonae Indstria (the world's largest producer of wood-based panels), Corticeira Amorim (the world's leader in cork production), Conservas Ramirez (the oldest canned food company), Cimpor (one of the world's largest producers of cement), and EDP Renováveis (a global leader in renewable energy) are all headquartered in Portugal.
There is no comprehensive labour code in Portugal. The primary documents are the Portuguese Constitution, which lays down basic rights and principles for both employees and employers, European law, the Portuguese Employment Code, and the Regulation of the Employment Code. Further, both individual and collective bargaining agreements are relevant.
Most of the requirements in the Portuguese Employment Code are non-negotiable and cannot be changed through collective bargaining or agreement between the parties. Portuguese employment law safeguards the rights of all working citizens.
Portugal Business Culture
When it comes to Portugal business culture, there are a few things to keep in mind to make a good impression:
Do's
- Be punctual for meetings and appointments.
- Dress professionally and conservatively.
- Show respect to your elders and those in positions of authority.
- Build personal relationships with business associates.
- Use formal titles and last names when addressing people.
Dont's
- Don't be too direct or confrontational in communication.
- Don't interrupt or speak over others.
- Don't be too casual or overly familiar with colleagues or clients.
- Don't be too pushy or aggressive in negotiations.
- Don't forget to keep your promises.
getting started
Portugal - Working Hours and Overtime
Working Hours
The maximum number of hours an employee can work in a week is 40, but this number can be averaged out over a longer period of time if mutually agreed upon. Over the course of the agreed upon time period, which is not to exceed 12 months, the average work week is not to exceed 48 hours, including overtime. Without a prior agreement, the maximum length of time an average can be taken over is 4 months.
Overtime
Hours over the weekly standard 40 and employees may only work a maximum of 2 hours overtime per day or 48 hours per week. The annual maximum allowance for overtime hours depends on the size of the company, with the employee being able to work a maximum of 150-175 hours of overtime per year.
The minimum mandated pay for overtime is as follows:
- 125% of salary for the first hour
- 137.5% of salary for remaining hours
- 150% of salary for hours worked on weekends and public holidays
As of January 2022, businesses can be fined for communicating with their remote or teleworker employees via text message or phone call about work-related matters outside of normal business hours.
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We are Portugal EOR experts
We have extensive experience helping businesses expand their workforce in the Portugal. Take a look at our areas of expertise below:
Find out how payroll works in Portugal and what you can expect when it comes to salaries, bonuses and tax
Enhance your understanding of what your employee is entitled to when working in Portugal
Learn more about how you can attract and retain staff in Portugal with both statutory and enhanced employee benefits
Unsure about what’s required when employing staff in Portugal? Find out about Portuguese Work Permits and Visas here
We deliver a fully-managed EOR Service in Portugal, including Payroll, HR and legal support.
Without Agility EOR, our ability to move quickly and scale would be extremely limited. Superb work from A to Z.
Carol Oliveira
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Frequently Asked Questions
Payrolling the employees is a key part of the service offered by an employer of record company. The EOR will calculate and remit all taxes, social securities and similar payments, on behalf of both employer and employee. The client will be invoiced in advance by the EOR company, for the total cost of the payroll.
Yes. Our clients are free to dictate the structure of the employees’ remuneration including any bonuses or commissions they wish to offer. In some countries, there is a statutory requirement to provide “bonuses”, for example in the form of Christmas or holiday allowances.
Yes. Agility EOR will calculate what pay is due upon termination of an employee, factoring in such things as any untaken leave entitlements.
We find that most of our clients are in the Tech, IT, Finance and Professional Services industries. However, we have acquired the skills, knowledge and experience to help all industries across the globe.
As a private company, we’re not beholden to shareholders or asset-shredding Private Equity targets. We aim to build long-term relationships with our clients. At Agility EOR, our approach is that we never forget that our business is all about people. Our Employer of Record solutions are tailored to each requirement, not a one-size-fits-all tech platform. We do the right thing by our clients and by the laws of each country we operate in. And we believe in openness; if we don’t feel we can offer you the best solution for a specific territory, we’ll say so.
We pride ourselves on our personable-approach so once you enter your new employees details into our dedicated platform, we’ll arrange a call with you to go through the details of the employment contract where together we can review and amend to your requirements. We liaise directly with your employee to build a rapport and obtain the necessary information to hire them compliantly, and set them up ready for their first payroll.
We never stop delivering! Even if you’re employee has been onboarded and is happily working for you and being paid each month, we’re here to partner with you whenever you or your employees need us. Even your ex-employees may need our assistance for tax documents, proof of employment requests etc… Our service never stops!