End-of-work bonus and severance pay in Portugal : everything you need to know in order to calculate and know your rights in case of job contract termination
Everything that has a beginning to an end and a contract of employment in Portugal, even for an indefinite period, may one day be completed. The termination of the employment contract may entitle the employee to compensation, depending on the type of dismissal. When one leaves voluntarily or not his work at. Portugal it is important to know if one can benefit from end of contract benefits. In fact, Portuguese law sets award criteria and calculation methods for end-of-contract bonuses, whether you decide to leave your job or your employer decides to terminate your professional relationship. How to calculate the Portuguese end of contract bonus ? How to know these rights to severance benefits in Portugal ? Lisbob, the assistant of expats in Portugal, tells you all about end of contract bonuses and severance pay.
You will know everything about end-of-work bonus and severance pay in Portugal
Resignation of the employee with or without notice
Without recognized justification, the worker is not entitled to compensation or end-of-contract benefits when he resigns, whether with or without notice. In fact, if he does not respect the periods of notice, the employee will even have to pay the employer an indemnity equal to the basic salary and the day-values corresponding to the missing period. You must therefore be careful to respect the notice period if you decide to resign from your job in Portugal so that you do not end up with money to pay back to your former employer or pay less.
Depending on the kind of contract, there are different end-of-work bonus and severance pay in Portugal.
Resignation motivated by the employee for "just cause" (causa justa)
The reasoned dismissal of the employee for "just cause" (causa justa) includes a basic allowance of 15 to 45 days and a daily allowance for each complete year of seniority, the worker receiving at least an amount corresponding to three months. In the case of an incomplete year, the calculation is made proportionally.
The employee may terminate the employment contract for "just cause", denouncing it if the employer adopts one or more of the following behaviors. Some are entitled to compensation or end-of-contract bonuses, others not.
Example of "just cause" giving entitlement to compensation:
- Does not make the payment of the wages punctually (more than 60 days) ;
- Intentionally violates the legal or contractual warranties of the worker ;
- Applies unfair sanctions ;
- Does not guarantee the conditions of hygiene and safety of work ;
- It intentionally damages the personal financial interests of the employee ;
- It undermines, directly or through its legitimate representatives, the physical integrity, freedom, honor and dignity of the worker, under the conditions provided for by law.
Examples of just cause (without compensation):
The following situations are also considered a valid reason for resolution, without being entitled to compensation or end-of-contract bonuses :
- The employee has other legal commitments that are not compatible with the job;
- Substantial and substantial modification of the working conditions in the lawful exercise of the powers of the employer
- Lack of timely payment of salary.
You better check twice if you received enough end-of-work bonus and severance pay in Portugal
End of contract by mutual agreement
Sometimes you find a mutual agreement with your employer and things end pretty well. However, Portugal's labor law does not provide a special condition for termination benefits with mutual agreement. If the agreement between the employer and the worker has not stipulated any rules regarding possible compensation, then the employer is not required to pay the employee who leaves the company.
Collective dismissal due to job loss and lack of accommodation
In these types of dismissals, the employee is entitled to 30 days of basic pay and a daily allowance for each complete year of seniority, giving at least three months, that is to say significant end-of-contract bonuses. Contracts commencing after November 1, 2011 provide for a remuneration of 20 days of base pay and dividends for each full year of service without the minimum value of three months.
Since October 2013, new systems have been put in place which define 18 and 12 days of compensation, ie a reduction in the protection of workers in Portugal. The value of the monthly remuneration and the day-values cannot exceed 20 times the national minimum wage (10,600 euros). Regardless of years of service, the total amount of compensation is limited to one of the following:
- 12 times the salary and the day-values of the worker ;
- 240 times the value of the minimum wage (€ 127,200), when the basic salary and salary increases are more than 20 times the minimum wage (€ 10,600).
It is possible to make an online simulation of the end-of-contract bonuses in Portugal by clicking here.
Sometime you have to go to court to receive end-of-work bonus and severance pay in Portugal
Illegal dismissal
It is unfortunately common in Portugal to deal with an illegal or abusive dismissal. We will not go into the details of the procedures to be done because they are not the subject of this article, but in this case the remuneration will correspond to an amount between 15 and 45 days of basic remuneration and value-day for each year. seniority, complete or not, benefiting from at least three months.
The worker may prefer to reintegrate into the business at the expense of compensation but will still be entitled to salary that he has not received since the dismissal until confirmation of the guilt of the company.