Workplace relocation in Portugal: can you refuse?

Has your employer told you that you now work in another shop, another warehouse or another city? Portuguese law does not let employers do this freely. They can only transfer you in two situations (Article 194(1) of the Labour Code), they must give written notice of 8 or 30 days (Article 196) and they must pay the costs the move causes you (Article 194(4)).

When can your employer transfer you?

The starting point is Article 193: you carry out your work at the place defined in the contract. On top of that, you are bound to travel that is inherent to your duties or essential to your professional training. A delivery round or a three day training course in Porto is not a transfer.

Article 129(1)(f) reinforces this: the employer is prohibited from transferring you to another place of work, except in the cases provided for in the Labour Code, in a collective agreement, or where there is agreement between the parties. Breaching this article is a very serious administrative offence (Article 129(3)).

The cases provided for in the Code are only two (Article 194(1)):

a) Move or closure of the establishment, in whole or in part, where you provide your work. The shop closes, the warehouse moves, the office shuts down. Here serious harm is not discussed: the law allows the transfer.

b) Another company interest that requires it and a transfer that does not cause serious harm to you. There are two conditions here, and both must be met at the same time. If there is serious harm, the transfer is not lawful.

There are two variations many people do not know about:

• Agreement between the parties (Article 194(2)): you can widen or narrow these cases by agreement. That agreement lapses after two years if it has not been applied. This is the mobility clause that often appears in contracts.
• Collective agreement (Article 194(6)): a collective labour regulation instrument can set these rules aside. It is worth checking what your sector agreement says.

What counts as serious harm?

The law uses the expression serious harm but does not define it. In current interpretation, the normal inconvenience of changing location is not enough. It has to be relevant damage to your personal, family or financial life.

What usually weighs:

• Travel time. Going from 20 minutes to an hour and a half each way is different from going from 20 to 30 minutes.
• Real cost. Fuel, tolls, a new travel pass, parking. Compare this with what the employer offers to pay.
• Public transport. If the new location has no transport compatible with your schedule, that is a strong fact in your favour.
• Children and dependants. School and nursery hours, care for a person with a disability or chronic illness.
• Studies. If you are a working student, the transfer may make classes impossible. See the working student guide.
• Health. Treatment and appointments booked in the area where you live.

Practical rule: do not argue with feelings, argue with numbers. Distance in kilometres, door to door time, monthly cost, train timetables. Keep everything in writing.

Notice and form: what the letter must say

Many transfers fail on form, not on merit. Article 196 is short and demanding. The employer must communicate the transfer:

1. In writing. A conversation in the corridor or a vague message in the team chat does not comply with the law.
2. With 8 days notice if the transfer is temporary, or 30 days if it is permanent (Article 196(1)).
3. With reasons. It must say why. Reorganisation with nothing else is weak: without the reason you cannot assess whether the transfer fits paragraph (a) or (b).
4. With the expected duration of the transfer, and a reference to the mobility agreement where one exists (Article 196(2)).

Breaching Article 196 is a serious administrative offence for permanent transfers and a minor one for temporary transfers (Article 196(3)).

If you receive an incomplete notice, reply in writing within the following days. Ask for the missing reasons, the expected duration and the terms for paying the costs. That email is your cheapest evidence. The same principle applies to the mandatory written information about your contract, in the transparent working conditions guide.

Who pays the costs

Article 194(4) is clear: the employer must cover the worker's expenses arising from:

• the increase in commuting costs (the difference between what you spent before and what you spend now);
• the change of residence, where the transfer justifies it;
• accommodation, in the case of a temporary transfer.

Note the detail: it is the increase. If you used to spend 40 euros a month on transport and now spend 150 euros, the employer owes the 110 euro difference, not the full 150 euros.

Not paying is a serious administrative offence in a permanent transfer (Article 194(7)). And if the employer promises and does not pay, the amount is a debt owed to you, with the same tools as late wages.

Temporary transfer: the six month limit

A temporary transfer cannot exceed six months, unless there are compelling operational requirements of the company (Article 194(3)). Compelling requirements is a high bar: being convenient for the employer is not enough.

If it goes beyond six months without a serious justification, there are two practical consequences:

• It is a minor administrative offence (Article 194(7)), which you can report to the ACT.
• In current interpretation, a transfer that drags on indefinitely stops being temporary. If in practice it is already permanent, you should demand the treatment of a permanent transfer, with 30 days notice and the consequences of paragraph 5.

Mark the date on your calendar on the day the transfer starts. When the sixth month arrives, ask in writing for the date of your return.

Can you leave and receive compensation?

This is the part most people do not know. In the case of a permanent transfer, if you suffer serious harm, you can terminate the contract and you are entitled to the compensation of Article 366 (Article 194(5)).

The current Article 366 rate is 14 days of base pay and seniority payments for each complete year, but only for service since 1 May 2023. Earlier service is calculated in statutory segments under Law 69/2013, so an older contract must not multiply all seniority by 14. These rules also apply:

• The daily value is monthly base pay and seniority payments divided by 30 (Article 366(2)(c)).
• For a fraction of a year, the amount is pro rata (paragraph (d)).
• The pay taken into account cannot exceed 20 times the minimum wage (paragraph (a)).
• The total cannot exceed 12 months of base pay and seniority payments (paragraph (b)).

Careful: leaving through this route is not the same as terminating for just cause. Here the law gives you a specific exit linked to the transfer and fixes the compensation straight away. If on top of the transfer there are other serious breaches by the employer, compare with the constructive dismissal guide, where the compensation is set by the court.

Before you decide, add up your final pay at the end of the contract: untaken holidays, holiday allowance and Christmas allowance on a pro rata basis.

Domestic violence: transfer at your request

Article 195 reverses the logic: here it is you who requests the transfer.

If you are a victim of domestic violence, you have the right to be transferred, temporarily or permanently and at your request, to another establishment of the company, provided two conditions are met:

• filing a criminal complaint;
• leaving the family home at the moment the transfer takes effect.

The employer can only postpone the transfer on the grounds of compelling requirements linked to the operation of the company or service, or until a compatible position is available (paragraph 2). In that case of postponement, you have the right to suspend the contract immediately until the transfer happens (paragraph 3).

There is also an important safeguard: confidentiality of the situation behind the change is guaranteed if you request it (paragraph 4). Breaching paragraph 2 is a serious administrative offence (paragraph 5).

If your employer does not comply

Do not disappear. Refusing to show up at the new location without reacting in writing can be read as an unjustified absence or even as job abandonment. The sequence that works:

1. Reply in writing, within the notice period. Say that you consider the transfer unlawful and why: no reasons given, short notice, serious harm, costs not covered.
2. Gather evidence of serious harm. Distances, transport timetables, monthly cost, school hours, medical statements.
3. Ask what the employer will pay and on what terms. In writing.
4. Keep working while the situation is unresolved, unless you decide to terminate under paragraph 5.
5. File a complaint with the ACT if the employer ignores you. The step by step process is in the ACT complaint guide, and the complaint can be anonymous.

If you work remotely or in a hybrid arrangement, note that changing the agreed place of work has its own rules. See the remote work rights guide. And if the transfer comes in the middle of a restructuring with job cuts, compare it with the individual redundancy guide to see whether what is really on the table is a dismissal.

Are you an employer? Transfers are one of the areas where the ACT finds breaches most easily, because companies fail on form rather than on merit. Always give written notice, with the correct 8 or 30 day period, with concrete reasons and with the expected duration stated. Budget the increase in commuting costs before deciding and put the offer in writing: it is cheaper than a contract termination with compensation. And check whether the mobility clause in the contract is still valid, because it lapses after two years without being applied (Article 194(2)). The rest of the formal obligations are in the guide on how to hire an employee.

This guide is general information and does not replace legal advice for your specific case. Questions? ola@despacho.pt