I received the compensation: can I still challenge the dismissal?

Did you receive the dismissal compensation and now think it was unfair? You can still challenge it, but there is a rule that catches a lot of people: under the current law, you have to return the compensation before you go to court.

This guide explains when that applies, by when you have to return it, and what is going to change with the labour reform.

First: not every dismissal pays compensation

This return rule only exists when the company paid you a compensation. And that only happens in some types of dismissal.

• Collective dismissal and dismissal for job position extinction: the company pays a compensation to the worker. This is where the return rule applies.
• Just cause dismissal (for something you did): the company pays no compensation. There is nothing to return.

So if you were dismissed for just cause, skip the return part. Go straight to the deadlines section.

The rule that catches people: receiving means accepting

The law states this clearly. When the worker receives the full compensation for collective dismissal, acceptance of the dismissal is presumed (Art. 366, no. 4). The same rule applies to job position extinction, by reference in Art. 372.

"Presumed" does not mean it is final. It is a presumption you can overturn. But only in one way: by returning the compensation (Art. 366, no. 5).

[Common reading:] the idea of the law is simple. Either you keep the money and accept the exit, or you return the money and argue the dismissal in court. You cannot have both at the same time.

By when you have to return it

For years there were doubts about what returning "at the same time" meant. The Supreme Court settled it.

Uniform Ruling 7/2024 set the rule: the compensation must be returned by the moment you file the precautionary procedure or the action challenging the dismissal. That is the meaning of "at the same time".

In practice, this is good news for the worker. You have time to:

1. Receive the letter and understand what happened.
2. Seek advice and decide whether it is worth going ahead.
3. Return the amount and file the action within the deadline.

You do not have to return it the minute after you receive it. You have until the day you go to court.

The deadlines to challenge the dismissal

Returning the compensation is not enough. You also have to respect the deadline to challenge. And the deadline changes with the type of dismissal.

[Common reading:] the deadlines are short and missing them closes the door for good. Mark the date of the dismissal letter on the calendar and count from there.

What you gain if you challenge and win

Is it worth returning and going to court? It depends on what is at stake. If the dismissal is ruled unlawful, you have two doors (Art. 389 and 391):

• Going back to the job (reinstatement): you return to the post and receive the pay you lost from the dismissal until the judgment.
• Compensation instead of returning: if you do not want to go back, you request compensation of 15 to 45 days of base pay and seniority payments for each year of service (Art. 391).

What changes with the labour reform

This is the part that could turn everything upside down. The 2026 labour reform (the Trabalho XXI package) touches this rule directly.

According to the Government bill, presented on 29 May 2026:

• The duty to return the compensation to challenge the dismissal in court is removed.
• The presumption of acceptance is revoked: receiving the compensation no longer means you accepted the dismissal.
• A bond in one case only: a security equal to the amount received would be required only when the worker asks for reinstatement in the company.
• The compensation for collective dismissal rises to 15 days per year, and the compensation for non reinstatement also goes up.

[Bill:] all of this is in the bill. It is not in force. In June 2026, the rule that counts is still the return rule. When the final text is published in the official gazette, we will update this guide.

What to do now, step by step

1. Check the type of dismissal. Just cause pays no compensation; collective and job position extinction do.
2. Do not rush to collect the compensation if you are thinking of challenging. Taking it all can count as accepting.
3. Mark the date on the letter. Count your deadline from there (60 days or 6 months).
4. If you go to court, return the amount in time, by the day you file the action (Supreme Court Ruling 7/2024).
5. Check the figures before you sign any settlement receipt.

Useful links

• Final pay at the end of the contract: what you cannot waive the settlement receipt does not erase what you were not paid.
• Labour reform 2026: what changes for dismissal the full picture of the reform.
• Unfair dismissal compensation: how much you get the figures when the court rules in your favour.
• Collective redundancy in Portugal: how compensation is calculated when the company lets several people go.
• Termination of employment in Portugal the five ways a contract can end.