Staff Recruitment in Portugal: A Practical Guide

Published on and written by Cyril Jarnias

Portugal has become an attractive destination for many companies looking to establish or expand in Europe. With a skilled workforce and competitive costs, the country offers real opportunities. However, recruiting staff in Portugal requires a good understanding of the legal framework and local specifics. Here is a comprehensive guide to help you with your recruitment efforts in Portugal.

Keys to Successful Recruitment in Portugal

To successfully carry out your recruitment process in Portugal, it is essential to follow a few key steps:

Define your needs precisely: Before starting recruitment, take the time to clearly define the desired profile, required skills, and job conditions. This will allow you to target your search effectively.

Choose the right recruitment channels: Portugal has many job sites and professional networks. The most popular are Net-Empregos, ITJobs for tech profiles, and LinkedIn. Don’t hesitate to diversify your sources to broaden your candidate pool.

Write an attractive job offer: Highlight the strengths of your company and the position offered. Portuguese people are sensitive to work-life balance, training opportunities, and career advancement.

Conduct in-depth interviews: Plan several selection stages to assess technical skills as well as the motivation and cultural fit of candidates with your company.

Be transparent about conditions: Clarify contractual aspects, compensation, and benefits from the start to avoid any misunderstandings.

Good to know:

English proficiency is widespread in Portugal, especially among young graduates. However, offering Portuguese language courses can be a plus to facilitate the integration of your recruits.

Worker Rights and Protections: What You Need to Know

Portuguese labor law provides a protective framework for employees, which is important to understand as an employer:

Working hours: The standard workweek is 40 hours, with a maximum of 8 hours per day. Overtime is strictly regulated and must be compensated.

Paid leave: Employees are entitled to 22 working days of paid leave per year, plus 13 public holidays.

Protection against dismissal: Dismissal must be justified by valid reasons (economic or performance-related). A specific procedure must be followed, including notice periods.

Minimum wage: It is set at 870 euros gross per month in 2024, with regular increases.

Equality and non-discrimination: Portuguese law prohibits all forms of discrimination based on gender, origin, religion, sexual orientation, etc.

Employee representation: Companies with more than 50 employees must establish worker committees.

Good to know:

Portugal recently strengthened protections for remote workers, with a “right to disconnect” and an obligation for the employer to contribute to telework-related expenses.

Your Recruitment Partners: Specialized Agencies and Services

To facilitate your recruitment efforts in Portugal, you can call on various specialized players:

Recruitment agencies: Firms like Michael Page, Hays, or Robert Walters have a strong presence in Portugal and can help you identify the best profiles.

IEFP (Instituto do Emprego e Formação Profissional): The equivalent of the employment agency in Portugal offers free services to companies to post their vacancies and pre-select candidates.

Freelancing platforms: For occasional needs or specific profiles, sites like Freelancer.com or 99freelas are popular in Portugal.

Universities and schools: Portuguese higher education institutions regularly organize job fairs and can connect you with recent graduates.

Chambers of Commerce: The Luso-French Chamber of Commerce and Industry can support you in your efforts and connect you with local partners.

Good to know:

Portugal has a network of “technology centers” specialized by sector (textiles, footwear, ceramics, etc.) that can help you recruit specific technical profiles.

Employment Contracts in Portugal: Choosing the Right Option

Portuguese labor law provides several types of contracts, suited to different situations:

Permanent contract (Contrato por tempo indeterminado): This is the most common and protective form for the employee. It may include a probation period ranging from 90 to 240 days depending on the qualification level.

Fixed-term contract (Contrato a termo certo): Limited to a maximum of 2 years (3 years in some cases), it must be justified by the company’s temporary needs.

Temporary employment contract (Contrato de trabalho temporário): Used for specific assignments through a temp agency, its duration is limited to 2 years.

Part-time contract (Contrato a tempo parcial): It must specify the number of hours worked, which can be fixed or flexible.

Telework contract (Contrato de teletrabalho): It defines the specific conditions of remote work, including the provision of equipment and reimbursement of expenses.

Good to know:

Portugal introduced a new type of visa in 2022, the “Digital Nomad Visa,” making it easier to hire foreign remote workers for a period of one year.

Paperwork and Formalities: Essential Documents

To finalize the hiring of an employee in Portugal, you will need to gather several documents:

Signed employment contract: It must be written in Portuguese and include all essential elements (duration, compensation, duties, workplace, etc.).

Social security number: Each employee must be registered with the Portuguese Social Security system.

Tax identification number (NIF): Essential for income declaration.

Medical fitness certificate: A medical examination is mandatory before hiring.

Copy of diplomas and qualifications: Some positions require specific certifications.

Work permit: For non-EU nationals, a work visa is necessary.

Pre-hiring declaration: To be submitted to Social Security no later than the day before the first day of work.

Good to know:

Portugal has set up an online portal, “Segurança Social Direta,” which allows many employment-related administrative procedures to be carried out digitally.

From Offer to Integration: Key Recruitment Steps

Here is a summary of the main steps to follow to recruit in Portugal:

1. Publish your job offer on appropriate channels 2. Pre-screen received applications 3. Organize interviews (in person or remotely) 4. Conduct necessary checks (references, diplomas) 5. Make a detailed job offer 6. Negotiate and finalize contract terms 7. Gather required administrative documents 8. Submit declarations to authorities (Social Security, tax) 9. Arrange the pre-employment medical exam 10. Prepare the welcome and integration of the new employee

Don’t forget to plan a comprehensive onboarding program to facilitate the integration of your new recruit into the company and local culture.

Good to know:

Portugal places great importance on interpersonal relationships in the professional world. Plan informal moments to foster team cohesion and the integration of new arrivals.

Recruiting staff in Portugal may seem complex at first, but with good preparation and by following the key steps, you can attract and retain the best talent to grow your business in this dynamic and welcoming country.

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About the author
Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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