Quick guide

Unfair dismissal compensation in Portugal 2026: how much you get

Unfair dismissal in Portugal 2026: at your request the compensation is 15 to 45 days per year (Art. 391), with a 3 month minimum. Plus pay until judgment. What rises is a different figure.

If a court rules your dismissal unlawful and you do not want to go back to the job, you receive compensation between 15 and 45 days of base pay for each year of service (Art. 391 of the Labour Code). Plus the pay you stopped receiving until the judgment.

One headline keeps coming up: "unfair dismissal compensation is going up". Careful. The figure the reform wants to raise is not this one. It is a different one. This guide separates the two.

How much you get, an example first

The formula is always the same:

Compensation = (base pay divided by 30) times days per year times years of service

What changes is the number of days per year. In an unlawful dismissal that number sits between 15 and 45, and the judge sets it within the range. Two things weigh on it: the salary level and the degree of unlawfulness (the more serious the company failure, the closer to 45 days).

Estimate your compensation

The calculator applies the current rules and splits the years of service across the different regimes. Enter the base salary, the start date and the leaving date.

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What an unlawful dismissal is

It is a dismissal that does not follow the law. The most common cases:

No correct disciplinary procedure (the statement of charges was missing, the reply was missing).
No valid reason, or a reason that cannot be proven.
A prohibited reason: pregnancy, a complaint to the ACT, sick leave, exercising your rights.

A dismissal only becomes officially unlawful once a court says so. For that you have to file the challenge in the labour court, within 60 days of the dismissal (Art. 387). If you miss that deadline, the dismissal becomes final.

You have two exits: return or take the money

When the dismissal is ruled unlawful, the law gives you a choice.

Go back to the job (reinstatement). This is the rule (Art. 389). You return to your post, with all your seniority, as if you had never left.
Take the compensation (Art. 391). If you do not want to go back, you request 15 to 45 days per year instead of reinstatement. You can make this choice up to the end of the last hearing of the trial.

In both cases you receive the pay until the judgment (Art. 390). That amount can be high if the case drags on, because it counts every month since the dismissal.

The number mix-up: 391 vs 392

Here is the mistake many headlines make. There are two compensations in place of reinstatement, with similar names and different amounts.

	At your request (Art. 391)	At the employer request (Art. 392)
Who asks	The worker, if not wanting to return	The company, to avoid taking you back
Days per year	15 to 45	30 to 60
Minimum	3 months	6 months
When it applies today	Whenever the dismissal is unlawful	Only micro company (fewer than 10 workers) or management role

When you read "unfair dismissal compensation is going up", that refers to Art. 392 (the employer opposition). The 2026 labour reform wants to raise that figure from 30 to 60 to 45 to 60 days and extend it to more companies.

[Proposta:] this change is not law yet. It is a bill submitted to the Assembly of the Republic. The compensation you request (Art. 391) stays at 15 to 45 days.

See what the labour reform changes

The full guide to the dismissal reform: what is only a proposal, what is already law, and what changes for you.

See the reform guide →

What does NOT count in the calculation

The law says "base pay plus seniority payments". That is less than what you get at the end of the month. Left out:

Meal allowance
Holiday and Christmas allowances
Commissions and variable bonuses
Overtime
Travel allowances

If you only know the total amount on the payslip, ask the company for the breakdown of your pay structure or check your contract. It is the base salary that counts.

What to do if you were dismissed and think it is unlawful

Keep the dismissal letter and the date. It sets the rules that apply.
Do not sign the release in a hurry. Accepting amounts can close the door to claiming more.
Check the procedure. Was the statement of charges missing? Was the reply missing? It may be unlawful.
You have 60 days to challenge it in the labour court from the dismissal date.
Claim unemployment benefit from Social Security in parallel. The termination is not at your initiative.

Can they dismiss you like this?

Answer a few questions and see whether your dismissal follows the law or whether there are grounds to contest it.

See the guide →

Useful links

Severance pay in Portugal: how much you get - the formula and the three types of termination in detail.
Labour reform 2026: what changes for dismissal - where Art. 392 and opposition to reinstatement come in.
Severance calculator - estimate the amount with the current rules.
I received a disciplinary notice: what to do - the first step of a disciplinary procedure.

Frequently asked questions

How much is unfair dismissal compensation in Portugal in 2026?+

If the court rules the dismissal unlawful and you do not want to go back, you request compensation between 15 and 45 days of base pay and seniority payments for each year of service (Art. 391). The minimum is always 3 months, even if your service is short. The court sets the number of days within that range.

Is unfair dismissal compensation going up in 2026?+

The compensation the worker requests instead of returning stays at 15 to 45 days per year (Art. 391). What the labour reform proposes to raise is a different figure: the compensation when the employer opposes reinstatement, which would rise from 30 to 60 to 45 to 60 days per year (Art. 392). And it is still only a bill.

What is the difference between Art. 391 and Art. 392?+

Art. 391 is the compensation you request when you do not want to return to the job: 15 to 45 days per year. Art. 392 is the compensation paid when the employer asks the court for you not to return: 30 to 60 days per year, and today only in micro companies or management roles. They are different situations with different amounts.

Do I get paid from the dismissal until the trial?+

Yes. In an unlawful dismissal you are entitled to the pay you stopped receiving between the date of the dismissal and the date of the judgment that rules it unlawful (Art. 390). It is paid on top of reinstatement or the compensation you choose.

Can I choose between going back to the job and taking the compensation?+

Yes. The rule in an unlawful dismissal is reinstatement: you return to your job (Art. 389). But you can prefer not to return and request the Art. 391 compensation. The choice is yours and you can make it up to the end of the last hearing of the court case.

Do I have to go to court to get unfair dismissal compensation?+

Yes. A dismissal is only unlawful once a court rules it so. You have 60 days from the dismissal to file the challenge in the labour court. Without that action, the dismissal becomes final and you lose the right to contest it.

What counts for the compensation: the whole salary or just the base?+

Only base pay plus seniority payments. The meal allowance, holiday and Christmas allowances, commissions, variable bonuses and overtime are left out. The formula is (base pay divided by 30) times days per year times years of service.

Does unfair dismissal give the right to unemployment benefit?+

Yes. The termination is not at your initiative, so you can claim unemployment benefit from Social Security, as long as you have the required contribution period. The compensation paid by the employer and the benefit paid by Social Security are separate and add up.

Official sources

5 references

This guide is for informational purposes only and does not constitute legal advice. For your specific situation, consult a lawyer or official authority. Found an error? Let us know at ola@despacho.pt.