How to hire an employee in Portugal: step by step

Hiring your first employee in Portugal? It takes 7 steps, almost all free and done online. What gets expensive is skipping the paperwork: each missing piece of mandatory information is a serious administrative offence, and a probation period agreed only verbally does not exist.

This guide shows how to hire an employee in Portugal in the right order: from the contract type to the Social Security filing, from insurance to the medical exam. It is written for you, the employer. The core legal basis is Arts. 106 to 111 of the Labour Code.

Step 1: choose the contract type (fixed-term is the exception)

Permanent is the default contract. You do not need to justify anything and no written form is required (Art. 110 of the Labour Code), although the information duty in step 2 makes paper unavoidable in practice. It gives the employee stability and you less bureaucracy. See how it looks from the other side in the permanent contract guide.

Fixed-term is an exception with strict rules. It only covers temporary needs, objectively defined, and only for as long as strictly necessary (Art. 140). It must be written, signed, and state the reason with concrete facts linking the task to the deadline (Art. 141). Get this wrong and the contract converts into a permanent one (Art. 147). Limits: 2 years for a fixed end date, 4 years for an uncertain term (Art. 148).

Set the probation period in writing. The legal duration is 90 days for most roles, 180 for technically complex or trust positions and for first-job or long-term unemployed hires, and 240 for management (Art. 112). It is reduced or eliminated if the person comes from a fixed-term contract of 90 days or more, or from an internship in the same activity. Details in the probation period guide.

Step 2: hand over the mandatory information in writing (7 days and 1 month)

Even if the contract is verbal, the information cannot be. Art. 106(3) of the Labour Code requires you to give the employee, in writing and signed by the employer, at least:

• identification of the company (including any corporate group) and the workplace;
• job category or a brief description of the duties;
• date of signature and start date, plus the term or expected duration if fixed-term;
• holiday entitlement, or the rule used to calculate it;
• notice periods for terminating the contract, yours and the employee's;
• pay: amount, frequency, payment method and an itemised breakdown of its components;
• normal daily and weekly working hours, including overtime and shift rules;
• the work accident insurance policy number and the insurer;
• the applicable collective agreement, if any;
• identification of the FGCT (enrolment in the compensation funds has been suspended since 1 May 2023, but the item remains in the law; context in the Work Compensation Fund guide);
• the duration and conditions of the probation period;
• the individual right to continuous training;
• social protection schemes, including any supplementary benefits;
• and, if you use algorithms or AI in decisions on hiring or keeping the job: the parameters, criteria and rules they are based on.

There are two deadlines (Art. 107(4)): the core set (identification, workplace, duties, dates, pay, working hours and probation period) by the 7th day after the start; everything else within 1 month. You can deliver on paper or electronically, in one or several documents. Keep proof of delivery (Art. 107(5)): in a dispute, it is up to you to show you informed the employee.

The shortcut that solves everything: if all this information is in a written, signed employment contract, the duty is fulfilled in one go (Art. 107(3)). That is why in practice everyone puts the contract in writing, even when the law does not require it. And when any element changes, inform the employee in writing by the date the change takes effect (Art. 109).

Step 3: report the hire to Social Security before the start

Declare the new employment relationship on Seguranca Social Direta before the person starts working: the deadline is the start of the contract's performance, with the employee's NISS, the contract type and the permanent remuneration (Art. 29 of the Contributory Code, as amended by Decree-Law 127/2025). The old rule (reporting within the 15 days before the start) ended with the Contributory Cycle Simplification, in force since 2026.

That declared permanent remuneration feeds the automatic monthly calculation of contributions: 23.75% paid by the company and 11% withheld from the employee. At the 2026 minimum wage of 920 euros, the company's monthly bill is 920 euros in salary plus 218.50 euros in contributions. If you pay a meal allowance, the 2026 tax-free limits are 6.15 euros/day in cash and 10.46 euros/day on a meal card.

Step 4: take out work accident insurance before day one

Work accident insurance is mandatory for every employee, in every sector and company size (Art. 79 of Law 98/2009). Without it, the company itself is liable for compensation and pensions if an accident happens.

Two practical points. First, declare the real salary: in case of underinsurance (a declared salary below the real one), the insurer only covers the declared part and the company pays the difference. Second, keep the policy number: it and the insurer's identification are part of the mandatory written information in step 2 (Art. 106(3)).

Step 5: admission medical exam and health and safety

Before the employee starts, they must pass the admission exam with the occupational doctor, or, if the hire is urgent, within the 15 days after starting (Art. 108 of Law 102/2009). This assumes what the law already requires of any company with 1 employee: an organised occupational health and safety service, usually contracted from an authorised external provider.

At admission, also hand over the information on the risks of the job and the protective measures (Art. 19 of Law 102/2009, a very serious offence if missing) and provide adequate safety training (Art. 20). The full map of these duties (service types, periodic exams, accident reporting) is in the health and safety obligations guide.

Step 6: day one paperwork: register, schedule, notices

Three quiet obligations that ACT checks in an inspection:

• Staff register kept up to date at each establishment, with name, dates of birth and admission, contract type, category, pay, holidays and absences (Art. 127(1)(j) of the Labour Code).
• Working schedule defined and posted: draw up the working hours map and post it at the workplace (Arts. 215 and 216), and keep the working time records that show the hours actually worked (Art. 202).
• Notices and codes: information on parenthood legislation posted in the company (Art. 127(4)) and, from 7 employees, a code of good conduct for preventing harassment (Art. 127(1)(k), a serious offence if missing).

Step 7: continuous training: 40 hours per year

Each employee is entitled to a minimum of 40 hours of continuous training per year, proportional for fixed-term contracts of 3 months or more (Art. 131(2) of the Labour Code). Each year the training must reach at least 10% of the workforce, and it can be delivered by the company itself or by a certified provider. You can bring training forward or defer it by up to 2 years.

This is not a decorative duty: hours not delivered within 2 years become a training credit the employee can use on their own initiative (Art. 132), and when the contract ends, training hours still owed are paid out in cash, as explained in the final pay guide. Breaching the 40 hours or the 10% rule: a serious offence.

What failing costs

The actual fine amounts depend on the company's turnover and degree of fault (Arts. 548 to 566 of the Labour Code); the mechanics are explained in the ACT complaint guide.

Just been hired? What you should receive

If you are on the other side of this hire, you are entitled to receive, in writing, within 7 days to 1 month: your duties, itemised pay, working hours, holiday entitlement, notice periods, the accident insurance policy and the duration of the probation period.

• Received nothing in writing? The company is committing a serious offence, and the probation period is presumed excluded, which protects you against a "trial period" dismissal.
• Check your registration on Seguranca Social Direta in the first days: if the hire was not reported, your future benefits are at risk.
• Know your basics: start with the 10 basic rights of working in Portugal and, on the stability of your contract, the permanent contract guide.

This guide explains the general Labour Code rules for hiring employees. Collective agreements and regulated sectors may add their own requirements. Hiring non-EU citizens also involves specific immigration rules.