In Portugal, annual leave and holiday pay are fundamental rights guaranteed to workers, ensuring they receive a paid rest period every calendar year.
Annual Leave Entitlement
Minimum Leave Period
Every worker is entitled to a minimum of 22 working days of paid annual leave per calendar year. The payment is calculated based on the work performed in the previous calendar year and is not dependent on the worker’s attendance or performance.
Pro-rata Leave for New Employees
In the year that the worer is hired, new employees are entitled to two working days of leave for each month worked, up to a maximum of 20 days. This leave can be taken after the employee has completed six full months of the employment contract. If the calendar year ends before the employee has completed six months, the remaining leave can be taken until 30 June of the following year. However, in that following year, no employee can take more than 30 working days of leave unless otherwise stipulated by a collective labor regulation.
Scheduling of Annual Leave
Annual leave must be scheduled by mutual agreement between the employer and the employee. In the absence of an agreement, the employer has the authority to determine the leave period, provided they give at least 60 days’ notice. It is customary for annual leave to be taken between May 1 and October 31, unless otherwise specified in the employment contract or a collective bargaining agreement.
Vacation
Generally, vacations must be taken in the calendar year in which they are earned. However, by mutual agreement, they can be carried over to the first quarter of the following year.
Holiday Pay
Entitlement and Calculation
Holiday pay is the remuneration a worker receives during their annual leave, equivalent to what they would have earned if they were working. In the month you receive your holiday pay, you are entitled to your regular monthly salary plus an additional amount equivalent to your base salary as holiday pay.
Proportionality of Vacation Pay
Like the right to vacation, vacation pay is proportional to the length of service provided. Therefore, workers who do not complete a full year of service will be entitled to a proportional vacation pay based on the time worked.
Importance of Compliance
Ensuring that all regulations regarding annual leave and holiday pay are followed is crucial for maintaining a fair and productive work environment. These measures are essential for the physical and mental well-being of employees, contributing to a healthier and more efficient workplace.
Recommendations from Reis & Pellicano
Reis & Pellicano advises both employers and employees to be fully aware of the current labor laws to avoid disputes and ensure compliance with all legal obligations. For any further clarification or assistance regarding annual leave and holiday pay, our team of legal experts is available to provide comprehensive support.
