Constructive dismissal in Portugal: it is called resolution with just cause

Why this article exists

Many people in Portugal — especially expats coming from the UK or Ireland — search for "constructive dismissal in Portugal". The term comes from common law: when an employer's behaviour is so bad that the worker has no choice but to resign, the law treats the resignation as if it were a dismissal.

Short answer: the figure exists, but it has a different name. In Portugal it is called resolution with just cause by the worker (rescisão com justa causa pelo trabalhador) and it is in Art. 394 of the Labour Code. The practical effect is the same: you leave without notice, you receive compensation, you keep your unemployment benefit.

Quick comparison table

The logic is the same: penalise the employer for serious failure and protect the worker who leaves because of it. The legal regime, deadlines and amounts differ.

When you can invoke just cause in Portugal (Art. 394)

Art. 394 n.º 2 lists the culpable employer reasons. The most frequent:

• Culpable failure to pay salary on time (a) — wages, allowances, bonuses in arrears.
• Culpable breach of legal or contractual guarantees (b) — failure to comply with collective agreement, working time rules, rest periods.
• Application of an abusive sanction (c) — unjustified, offensive or repeated sanctions.
• Culpable lack of safety and health conditions (d) — missing equipment, unsafe environment, no PPE.
• Culpable harm to the worker's serious patrimonial interests (e).
• Offence to physical integrity, freedom or honour of the worker or family (f) — harassment, assault, threats.

N.º 3 adds non-culpable reasons that still give just cause:

• Need to comply with legal duties incompatible with continuation (a).
• Imposed change of workplace causing serious harm (b).
• Unpaid wages for 60 days or more (c) — the most common case in our minutes.

Compensation: how it is calculated (Art. 396)

The compensation is between 15 and 45 days of base salary plus seniority pay per full year of service, plus the fraction for incomplete months.

The choice between 15 and 45 depends on:

• Seriousness of the motive invoked
• Employer fault (more serious → closer to 45)
• Worker's tenure
• Salary level

Minimum guarantees:

• Absolute minimum: 3 months of base salary (Art. 396 n.º 1).
• The employer cannot offset this against other debts.

How to resolve: step by step

1. Gather the evidence

Without solid evidence, the employer challenges and the court may rule against you. Gather:

• Pay slips (missing payments or short payments)
• Employer communications
• Emails, messages, lawful recordings
• Witnesses (colleagues, suppliers)
• Medical certificates (in health/harassment cases)

2. Send a formal demand first (recommended)

Before the resolution, send a formal demand letter (interpelação) asking the employer to comply with the obligation in question (pay outstanding wages, restore conditions). Give a reasonable deadline (8 days is standard). This formal demand:

• Documents that you tried to resolve through dialogue
• Strengthens your position if the case goes to court
• May solve the problem without you having to leave

[Common interpretation:] not mandatory, but in standard labour case law the formal demand strongly supports the just-cause claim.

3. Communicate the resolution in writing (Art. 395)

If the employer does not respond or comply, you communicate the resolution. The communication must:

• Be in writing, with date
• Set out the facts (it is not enough to say "I resign")
• Cite Art. 394 as legal basis
• Indicate the effective leaving date (can be the same day)
• Request Form RP-5044, work certificate and final settlement

Send by registered post with acknowledgement of receipt (ideal) or hand delivery against signed receipt.

4. Register at IEFP within 90 days

As soon as you have Form RP-5044, register online at the IEFP portal. Without registration within 90 days, you lose part of the unemployment benefit.

5. File a complaint with ACT (optional but strategic)

If there was a serious breach (especially unpaid wages), the ACT complaint:

• May result in fines for the employer (forcing regularisation)
• Strengthens your case if challenged
• Protects colleagues still at the company

The 30-day deadline (Art. 395 n.º 1)

You have 30 consecutive days from the moment you knew the facts to invoke just cause. If more time passes without you acting, you lose the right to use that motive.

[Common interpretation:] in cases of continued breach (wages overdue month after month), the deadline counts from the most recent breach. But it is a grey area — acting early is always safer.

Risks: what can go wrong

The employer can challenge the just cause in court within 30 days of receiving your communication (Art. 387 n.º 4). If the court rules against you:

• The exit becomes a simple resignation (not just cause)
• You lose the compensation you received
• You may have to pay the missing notice (Art. 401)
• You may lose unemployment benefit (Social Security may demand repayment)

That is why: solid documentary evidence + prior formal demand + clear and grounded resolution text. And in complex cases, it is worth consulting a specialist labour lawyer.

Next steps

• Wages overdue more than 60 days → read the pillar guide on unpaid wages and use the formal demand template first, then the resolution template.
• Workplace bullying or sexual harassment → read what counts as workplace bullying and use the internal complaint template.
• Wanted to understand the other termination routes → read the pillar on termination of employment in Portugal with the 5-route flowchart.
• Already left and want to calculate what you are owed → use the compensation calculator and the unemployment benefit diagnostic.