Public sector worker in Portugal: does the Labour Code apply?

Yes, but only partly. If you work for the Portuguese State, your main law is the General Law on Work in Public Functions (LTFP, Law 35/2014). On many matters, the LTFP itself applies the Labour Code (Art. 4(1)). On others, it has its own rules.

This guide answers the 7 questions we are asked most: whether the LTFP really is your law, hours, holidays, fixed-term contracts, unpaid leave, student workers and where to complain.

First: is the LTFP really your law?

Not everyone who works "for the State" is covered by the LTFP. Run this quick test.

You are covered by the LTFP if you work in the direct or indirect administration of the State, in an autonomous region or in local government (Art. 1(2)). For example: a ministry, a directorate-general, a public institute or a municipal council.

You are not covered by the LTFP if you work (Art. 2 LTFP):

• in a public business entity: look for "E.P.E." in your employer's name (2(1)(b));
• in the private office of a government member (2(1)(a));
• in a regulator of economic activity or at the Banco de Portugal (2(1)(c));
• as a member of the Armed Forces or the GNR, a PSP police officer or in criminal investigation at the PJ. These have special laws (2(2)).

[Depends on the case:] in a hospital or health unit with "E.P.E." in its name, many workers have a contract governed by the Labour Code, but some keep an older public employment bond. Check what your contract says.

Within the LTFP, the normal bond is the public functions employment contract (Art. 7). Appointment (nomeação) is kept for roles such as inspection, representing the State abroad or public security (Art. 8(1)). Management posts are held under a service commission (Art. 9(1)).

What changes compared with the private sector

For second jobs, all the rules are in the guide can I have two jobs in Portugal?.

Hours and holidays: 35 hours and 22 days, plus seniority

Your normal working time is 7 hours a day and 35 a week (Art. 105(1) LTFP). There are exceptions for flexible schedules and special regimes.

Holidays are 22 working days. For every 10 years of actual service, you gain 1 more day (Art. 126(2) and (4)). The entitlement falls due on 1 January (126(3)).

Need a single day off? You can be absent 2 days a month counted against your holidays, up to 13 a year, if your service authorises it (Art. 135(1) and (3) LTFP).

And in the year you retire? Your bond ends 30 days after you and your service learn of the retirement (Art. 292(2) LTFP). [Common interpretation:] since holidays follow the Labour Code (Art. 126(1) LTFP), you receive pay for holidays already due and not taken, plus the proportional share for the year you leave (Art. 245(1) Labour Code). The Christmas allowance for that year is also proportional to the time served (Art. 151(2)(b) LTFP).

Fixed-term contracts: as a rule 3 years at most and never permanent

This is the biggest difference from the private sector. In the public sector:

• a fixed-term contract requires a competitive recruitment procedure (Art. 56(5) LTFP);
• the contract must state the reason for the fixed term and, for a fixed term, the end date (Art. 58(1));
• as a rule, a fixed term lasts at most 3 years, with at most 2 renewals (Art. 60(1)). Special laws can allow more: contracts for research and development projects can last up to 6 years (Art. 7(1) of the law that approves the LTFP, Law 35/2014);
• if it covers urgent needs of the service, the limit is 1 year (Art. 60(3));
• there is no automatic renewal (Art. 61(1));
• if the contract breaks the law, it is void. It never becomes an open-ended contract (Art. 63);
• when the contract ends, you are entitled to compensation calculated as in the Labour Code: with a set end date (termo certo), if you are not leaving by choice (Art. 293(3)); with no set end date (termo incerto), always (Art. 294(4)).

And does the recruitment notice have to state the duration? The notice must state the type of employment bond, for example "fixed-term contract" (Art. 11(3)(b) of Ordinance 233/2022). The duration is not on the list of mandatory items. [Common interpretation:] the notice may leave it out. The end date must, however, appear in the contract you sign (Art. 58(1) LTFP).

The private sector rules are in the guide fixed-term contracts in 2026.

Unpaid leave: your return depends on how long it lasts

Your service may give you unpaid leave, but it is not obliged to (Art. 280(1) LTFP). The exception is leave of more than 60 days for training or courses: there you have a right to it (Art. 280(2) and (4)). Even so, the service can refuse in the cases set by law (280(3)). For example, if you have less than 3 years in the service or did not ask 90 days in advance.

Compare with the private sector in the guide to unpaid leave.

Student workers: the Labour Code applies

The LTFP refers student workers to the Labour Code (Art. 4(1)(h)). With a 35-hour schedule, this means:

• a schedule adjusted to your classes, whenever possible (Art. 90(1) Labour Code);
• if that is not possible, up to 5 hours a week off, paid (Art. 90(2) and (3)(c) Labour Code). In the private sector, with 40 hours, it is 6;
• justified absences on the day of the exam and the day before, up to 4 days per subject in each school year (Art. 91(1) Labour Code);
• 10 working days of unpaid leave a year (Art. 92(2) Labour Code).

The LTFP adds one advantage: student workers are one of the cases where the service can authorise a continuous working day, leaving earlier (Art. 114(3)(e) LTFP).

Requests and deadlines are in the guide for student workers.

Where to complain if your service breaks the rules

• Court: disputes with a public employer go to the administrative and tax courts (Art. 12 LTFP).
• Inspection: the ACT only oversees health and safety at work (Art. 4(3)). Where the Labour Code would send a complaint to the ACT, in the public sector the inspection belongs to the inspection service of the ministry that oversees your service, together with the Inspectorate-General of Finance (Art. 4(2)).
• Before that: make your request to your service in writing and keep a dated copy.

Related guides and tools

• Can I have two jobs in Portugal?: authorisation in the public sector.
• 22 or 25 days of holiday?: holiday rules in the private sector.
• Unpaid leave: the Labour Code regime.
• Student workers: time off, absences and how to ask.
• The Portuguese Labour Code explained: what it is and who it covers.
• Christmas bonus calculator: the proportional amount in the year you leave.

Disclaimer

This guide explains the general rules of the LTFP and the Labour Code in force on 2026-09-25. Special careers (teachers, doctors, nurses, security forces) and collective agreements may have their own rules. For risky situations, consider legal advice.