Late notice of not renewing a fixed-term contract in Portugal

If you gave less than 8 days' notice that you will not renew, the notice does not make the contract expire. If the employer did not give notice in time either, the contract renews and, to leave, you must give the resignation notice period.

Rui's example

Rui has a 6 month fixed-term contract ending on 31 October. The employer said nothing. On 28 October, Rui sends an email: "I do not want to renew, my last day is the 31st."

The notice arrived 3 days before the end. The law requires 8 (Art. 344 no. 1). So:

1. The notice does not make the contract expire on 31 October.
2. As the employer did not give 15 days' notice either, the contract renews (Art. 149 no. 2).
3. [Common interpretation:] Rui's email now counts as a resignation. The contract lasted 6 months, so the notice period is 30 days (Art. 400 no. 3). The last day becomes 27 November.

If Rui still leaves on 31 October, 27 days of notice are missing. The employer can claim the base pay and seniority allowances for those 27 days (Art. 401 no. 1). It can also claim compensation for the damage the missing notice caused, if it proves it. [Common interpretation:] each day is worth the base salary divided by 30. With a base salary of 900 €, that is 900 ÷ 30 × 27 = 810 €.

When late notice has no consequences

The contract ends on the date even with your late notice in these cases:

• The employer gave notice in time. If the employer said in writing, 15 days before, that it would not renew, the contract expires on its initiative. Your notice changes nothing. You are entitled to the 24 days per year compensation, pro rata for part of a year (Arts. 344 no. 2 and 366 no. 6).
• The contract says it does not renew. The parties can agree that the fixed-term contract is not subject to renewal (Art. 149 no. 1). [Depends on the case:] read the clause in your contract. [Common interpretation:] here the contract ends because of the clause and not because of your notice, so the Art. 344 no. 2 compensation may also be due.
• The employer agrees in writing. [Common interpretation:] sign a termination agreement. It must be a document signed by both parties, with one copy for each (Art. 349 no. 2). It must state the date of the agreement, the date it takes effect and the deadline for the worker to cancel it: until the 7th day after signing (Arts. 349 no. 3 and 350 no. 1).

[Depends on the case:] if the contract has already reached the renewal limit, other rules apply. See the fixed-term contract guide.

What if you simply stop going?

If the contract renewed, the following days count as working days. If you do not go, they are absences.

Art. 403 no. 2 presumes job abandonment when you are absent for 10 working days in a row without telling the employer why. Abandonment counts as a resignation and you must compensate the employer under Art. 401 (Art. 403 nos. 3 and 5).

The employer can only rely on abandonment after sending you a registered letter with acknowledgement of receipt to your last known address (Art. 403 no. 3).

The best route is always to put your exit in writing: either a resignation with the right notice, or a termination agreement. There is a template in the resignation letter with notice.

What you get at the end

Whatever the exit, you get the final pay:

• Salary up to the last day.
• Holidays accrued and not taken, plus pro rata holidays for the year, with the holiday allowance (Art. 245 no. 1).
• Pro rata Christmas allowance (Art. 263 no. 2 (b)).

In a contract of 12 months or less, or one ending in the calendar year after hiring, the total holiday pay cannot exceed the share proportional to the length of the contract (Art. 245 no. 3).

The 24 days per year compensation depends on who made the contract end:

See also the full guide on fixed-term contract non-renewal.

In short

Want to leave at the end of your fixed-term contract? Give written notice 8 days or more before the end. If that deadline has passed, talk to the employer and try a written agreement. If there is no agreement, plan for the resignation notice period.