Fixed-term contract non-renewal in Portugal: notice, severance and unemployment benefit (2026)

What counts as "non-renewal"

Non-renewal is the most common way to end a fixed-term contract. The relationship ends on the agreed date, with no one having to prove anything. The Portuguese Labour Code calls it expiry: the contract ends because it reached its natural finish.

It is regulated in Art. 344 (fixed term) and Art. 345 (uncertain term). For it to be lawful, three conditions must hold:

1. A valid written fixed-term contract exists (Art. 141).
2. There is a legitimate reason for the time limit (Art. 140 n.º 1) — replacing an absent worker, launching a new activity, a temporary project, etc.
3. The legal notice is given.

If any of these pieces is missing, the expiry may be unlawful — and you can ask for conversion to an open-ended contract or compensation.

Notice periods: the quick table

The core rule of Art. 344 n.º 1: whoever wants the contract to end on the agreed date must give minimum advance notice. Whoever fails to give notice gets stuck with the contract.

Fixed-term contract

The communication must be in writing (email with read receipt, registered letter; SMS is weak). Without written proof, it is as if you never communicated.

Uncertain-term contract

An uncertain term has no date, only a condition (e.g. "until employee X returns"). So the notice depends on the time already worked (Art. 345 n.º 1):

If the employer fails to give notice, they must pay the worker the equivalent pay for the missing days (Art. 345 n.º 2).

The compensation: 24 days per year

Article 344(2) states that, when a fixed-term contract expires without the worker being the party preventing renewal, the worker receives 24 days of base pay plus seniority payments for each full year of service, with a pro-rata fraction. If expiry follows the worker's notice under paragraph 1, this compensation is not due.

The formula is:

Severance = (base pay + seniority) × 24 ÷ 30 × (years + months ÷ 12)

Only base pay and seniority payments count — not meal allowance, performance bonuses or productivity premiums. Article 366 also caps the monthly pay used in the calculation at 20 times the statutory minimum wage and caps the total compensation at 12 times monthly base pay plus seniority payments or, where the first cap applies, 240 times the minimum wage.

Since 1 May 2023, Law 13/2023 states the 24-day rate directly in Article 344(2). The specific transitional rule that segments the 14-day rate in Article 366 does not replace this separate 24-day expiry rate.

The severance is paid at the moment of termination, together with:

• Wages until the last day
• Unused holidays + holiday allowance
• Pro-rata Christmas bonus
• Meal allowance for the days worked

If the company delays this payment, you can send a formal notice and claim default interest.

Unemployment benefit: your right

The expiry of a fixed-term contract is considered involuntary unemployment — you did nothing to lose the job, it ended naturally. Therefore, it qualifies for unemployment benefit on the same conditions as any other termination by the employer.

The two main requirements (Art. 22 DL 220/2006):

1. Qualifying period: 360 days of paid contributions in the 24 months before the termination.
2. Registration at IEFP within 90 days of the contract ending (general rule — some special deadlines apply).

Duration and value depend on age, average earnings and contribution history (Art. 28 and 37 DL 220/2006).

The key document: Form RP-5044

Form RP-5044 is the unemployment declaration the employer fills out and gives you on the last day of the contract (Art. 341). Without it, the application at Social Security gets stuck.

When you ask:

• Receive the original signed and stamped by the employer
• Verify the termination reason: "caducidade por verificação do termo" (expiry by occurrence of the term)
• Check the dates (start and end) and the declared salary

If the company delays or refuses, take two steps in parallel: written request + complaint to ACT.

Renewals: how many times it can happen

Art. 149 limits the renewals of fixed-term contracts:

• Maximum of 3 renewals
• Total cannot exceed 2 years (including the initial period and all renewals)
• The total duration of renewals cannot exceed the initial term

For uncertain-term contracts, the maximum is 4 years (Art. 148 n.º 5).

If the employer crosses any of these limits, the contract automatically converts to open-ended (Art. 147 n.º 2). You do not need to ask — it happens by law.

What changes when it becomes open-ended

• The fixed-term limit ends (it is a normal open-ended contract)
• The probation period is also over (it has already been served)
• Leaving costs more (employee notice: 30 or 60 days — Art. 400)
• The employer can only dismiss for just cause or via collective / job elimination / inadaptation procedures

6 common mistakes (and how to avoid them)

1. Accepting a verbal communication — "My boss told me on Friday there would be no renewal." Without written proof, you can argue tacit renewal.
2. Not asking for the RP-5044 on the day — chasing it later wastes time. Ask for it when you sign the exit papers.
3. Believing "fixed-term never gives compensation" — when the employer lets it expire, the current rule is 24 days per year. If the worker prevents renewal, Article 344(2) excludes the compensation.
4. Accepting "you are only entitled to 18 days per year" — the current Article 344(2) rate is 24 days per year.
5. Leaving early "to take another job" — you lose the severance and, in most cases, the unemployment benefit. Negotiate a qualified mutual agreement (Art. 10 DL 220/2006) if you want to keep the benefit.
6. Ignoring illegal renewals — if there were more than 3 renewals or it crossed 2 years, your contract is already open-ended. Do not accept "staying on fixed-term."

Practical scenarios and what to do

"The company did not notify me and the contract ends in 10 days"

The company missed the deadline (15 days). You have two options:

• Stay silent — the contract renews automatically for the same period. Good if you want to stay.
• Notify them yourself — if you want to leave, give 8 days notice. You still receive the 24-day-per-year severance.

Warning: if you keep working past the original end date without a signed renewal, the company may argue there was a new contract. Always insist on written clarity.

"I am 8 months in and the company says they won't renew"

If they respected the 15 days, it is lawful. Even so, check:

• Is the term reason in the contract valid (Art. 140)?
• Was the contract properly written and dated (Art. 141)?
• Are they paying the 24 days per year + everything else?

If there are flaws, you can request conversion to open-ended or compensation (Art. 147).

"They said 'no renewal' but offered a new role under another contract"

Be careful. It can be a tactic to restart the renewal limit clock. The law says a new fixed-term contract for the same role with the same worker, less than 1/3 of the previous contract duration after it ended, is prohibited (Art. 143 n.º 1). If you accept, you may have an open-ended contract from day one.

"The contract ended but the company asks me to stay 'just a few days'"

If you keep working without a new written contract, you fall into tacit renewal or open-ended status (depending on the limits already used). Do not work "informally" after the end date — demand a document.

Next step by situation

In short

A fixed-term contract has a set end date. Non-renewal is not a dismissal: it is expiry of the contract. When the employer lets it expire, the law requires written notice and provides compensation and, as a rule, involuntary-unemployment status. When the worker prevents renewal, Article 344(2) compensation is not due.

The better you understand the paperwork and the deadlines, the harder it becomes for the employer to cut corners. And when something looks off — late notice, low figures, repeated renewals — know that you have ways to push back.