Permanent Employment Contract in Portugal: Your Rights

A "contrato sem termo" is the permanent, open-ended employment contract in Portugal, the one with no end date. And it is the legal default, not a reward: the fixed-term contract is the exception, only allowed for temporary needs (Art. 140 of the Labour Code).

This guide explains what a permanent contract gives you, how its probation period works, how it can end, and the 6 situations in which your fixed-term contract may already have become permanent without anyone telling you.

What it is (and why it is the default)

The law starts from a simple principle: a permanent job calls for a permanent contract. A fixed-term contract is only valid "to meet temporary needs, objectively defined" and "for the period strictly necessary" (Art. 140(1) of the Labour Code): covering a colleague on sick leave, a seasonal peak, a project with an end in sight.

Two practical consequences:

1. The burden of proof is on the company (Art. 140(5)). If the reason for the term is in doubt, the employer has to prove it. You never have to prove the job is permanent.
2. Signing a fixed term outside the permitted cases is a very serious offence (Art. 140(6)), and the contract counts as permanent from day one.

A permanent contract does not require written form (Art. 110): if you started working on a handshake, you have a valid permanent contract. In practice, always ask for the paper (salary, category, hours, workplace), because it makes proving everything else easier.

The 6 situations that turn a fixed term into permanent

Art. 147 of the Labour Code is the key article here: it lists the cases where a contract counts as permanent from the start or converts into one at a given moment. In plain language:

In all of these cases, your seniority counts from the first day of work (Art. 147(3)): holidays, allowances, severance and dismissal protection are all calculated with the full time.

The rights of a permanent employee

Good news if you are on a fixed term: day-to-day rights are already equal (salary, holidays, allowances, training, Art. 146). What the permanent contract changes is stability:

• The contract never expires. No end date means no "end of contract", only the legal termination routes, all of them with rules.
• Severance grows with you. In an objective dismissal (individual redundancy, collective redundancy, failure to adapt), severance is 14 days per year of seniority (Art. 366), and your seniority counts from the start.
• Priority in hiring (Art. 145): if your fixed term ends and the company recruits externally for identical duties within 30 days, you have priority for a permanent contract. If they skip you, the company owes you 3 months of base pay.
• Credit for first-job seekers: if this is your first permanent contract, the 180-day probation can be shortened by previous internships or fixed-term work (Art. 112(5) and (6)).

The probation period of a permanent contract

Being permanent from day one does not mean full protection from day one. A permanent contract has a probation period (Art. 112):

• 90 days for most workers;
• 180 days for technically complex or high-trust roles, first-job seekers and long-term unemployed;
• 240 days for directors and senior staff.

During probation, either side can end the contract without giving a reason and without severance. The employer must give 7 days of notice once the contract has lasted more than 60 days, and 30 days of notice after 120. The details, including what the company cannot do, are in the probation period guide.

How a permanent contract ends

From your side, leaving is free: resignation with notice of 30 days (up to 2 years of seniority) or 60 days (more than 2 years), in writing (Art. 400). The guide on which resignation letter to send has the templates. If the company seriously fails you (late wages, harassment), you can leave immediately and with compensation through constructive dismissal.

From the company's side, there is no "it just ended": only the legal routes, disciplinary dismissal for just cause, individual redundancy, collective redundancy or failure to adapt, each with its own procedure, notice and severance. The full map of routes and costs is in the guide how to dismiss an employee in Portugal, and it is worth reading the version your employer reads. If you receive a dismissal letter, start with can my employer fire me?.

Warning signs: when "fixed term" is just a label

Three common situations where you are probably already permanent, or never stopped being:

1. Your contract gets renewed "as usual" every year for the same permanent role. Check the written reason: if it is generic ("increase in activity" with no facts), the term is invalid (Art. 141(3) and 147(1)).
2. You alternate between contracts and freelance invoices in the same job. Previous contracts in the same role count towards the 2-year limit (Art. 148(6)), and false self-employment has 8 tell-tale signs.
3. Your unspecified-term contract "ended" but you are still working. After 15 days, it converted (Art. 147(2)). The guide on the non-renewal of fixed-term contracts explains the notices and the 24 days per year of severance when the end is actually valid.

If the company refuses to recognise the conversion, keep contracts, payslips and schedules, and file a complaint with the ACT. Breaking the fixed-term rules is a very serious offence.

Tools and related guides

• Severance calculator, your seniority in euros.
• Fixed-term contracts in Portugal: the 2026 rules, limits, renewals and reasons, seen from the other side.
• Non-renewal of a fixed-term contract, notices, severance and unemployment benefit.
• Probation period in Portugal, durations, notice and termination.
• Which resignation letter to send, resignation, just cause and templates.
• How to dismiss an employee in Portugal, the legal routes from the employer's side.

Disclaimer

This guide explains the general rules of the Portuguese Labour Code in force on 2026-07-07. Collective agreements and specific cases may change deadlines and amounts. For high-stakes situations, consider legal advice.