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CONTRACTS
hired as an employee
A contract for any foreign worker must be in writing. According to Código do Trabalho Art.º 5 Lei n.º 7/2009 with following updates.
benefits of a contract
Binding agreement
Terms are clearer
Identify employer
Details expectations
Helps clarify disputes
Helps report an issue
Better legal defence
contract should be clear
Who are the employer and employee?
What is the job, what are the tasks?
Salary: how much; was is included; how is it paid?
When does it start? When does it end?
What is the length of the agreement?
Where is work, usually?
What is the working schedule?
SIDE BY SIDE
Businesses or individuals can hire you, either as an employee (on the payroll of a business) or as an independent worker (outsourced to provide a service), also known as self-employed.
Check the main differences:
FEATURES | EMPLOYEE | INDEPENDENT |
Written Contract | Mandatory | Less likely |
Income Tax Retention | Employer | Worker |
Social Security | Employer | Worker |
Food Subsidy | Common | Not Included |
Monthly Salary | Minimum (2023=€760) | No minimum |
Annual Income | 14 x monthly | 12 x monthly |
Holidays | 22 paid working days | Not paid |
Paperwork | Simple | Complex |
SELF-EMPLOYED
hired as an Independent
There is not a requirement for a written contract.
When working self-employed more responsibilities fall on the worker. The terms of the contract or work agreement likely will be less beneficial.
Where to start
Enrol as independent worker:
Finanças (Tax Office) https://www.portaldasfinancas.gov.pt/
Segurança Social (Social Security) https://app.seg-social.pt/ptss
issuing invoices
Taxes
If annual billing is below € 13 500, there is no place to payment or charging of taxes upfront. But these are due if billing is higher. In that case:
IRS (income tax) should be deducted in invoice. Hirer retains that amount and has to pay it.
IVA (sales tax) should added to the cost of services and charged in the invoice. Worker has to pay it to Finanças.
Social Security
Payment varies with reported quarterly billing.
Minimum is 20€/month.
WHEN THINGS GO WRONG
SPOT THE SIGNS
No written contract is provided
Working conditions do not match agreement
Working long days and/or excessive work
Food or lodging are deducted to salary
No registration in Social Security was not done
Need to register as self-employed on a daily job
EXPLOITATION
Taking economic advantage of the worker. Even if it is not forced.
HUMAN TRAFFICKING
If actions are taken using violence, coercion or abuse or other means with the goal of exploiting someone.
HOW TO GET HELP
Important contacts to keep in case you need help:
Agency for Work Conditions (ACT)
Working without a contract? Overworked? Under paid? Report anonymously.
300 069 300
National Immigrant Support Centre (ACM)
Support and services for the migrant citizens.
808 257 257 (from land line)
218 106 191 (from mobile)
Emergency response to human trafficking
Regional teams for rapid emergency intervention
EME TSH Norte (north of Portugal)
918 654 101
EME TSH Centro (centre of Portugal)
918 654 104
EME TSH Alentejo (Alentejo region)
918 654 106
EME TSH Lisboa (Lisbon region)
913 858 556
EME TSH Algarve (Algarve region)
918 882 942
European Emergency Number
Medical, Police, Fire
112