Portugal

Termination of the employment relationship can happen in the following ways:

• Voluntary termination by the employee (resignation);

• Retirement as per the employment contract;

• Non-renewal of the employment contract or expiry;

• Termination with just cause and no indemnity, for example in the case of theft or any other serious misconduct;

• Termination by mutual consent.

Different grounds for termination may carry different procedural requirements. 

Dismissal without notice (summary dismissal) is not permitted under the Portuguese Labour Code. Notice periods for termination from the employee varies with the period worked/intend to work for the same employer:

• During probationary period: - specific notice period applies to both employees and employer;

• After probationary period - only relevant to the employee, meaning the employee needs to abide by it when they resign but the employer may waive this right. Depends on length of service by Employees (see below).

Employers must meet certain requirements in order to justify hiring employees on a fixed term basis. Terminating fixed term contracts for invalid reasons carries a significant level of risk.

For indefinite contracts:

• Up to 2 years of service: 30 days

• More than 2 years of service: 60 days
  
  

The duration of probation periods depends on the contract type. For contracts of indefinite duration, the statutory standard is 90 days. For positions that are technically complex, with high levels of responsibility, require special qualifications or in a position of trust it may be extended to 180 days. For fixed-term contracts probation periods are 30 days if contract duration is longer than 30 days and 15 days if shorter than six months.