What happens in Portugal in the event of a work-related injury or an occupational disease? Are employees entitled to any kind of coverage and benefits? And what about foreign employees?  The answers to the above can be found in Law nº 98/2009, of September 4, which regulates the system of compensation for work injuries and occupational diseases. It is mandatory for Portuguese employers to provide their employees with appropriate coverage in this domain. Foreign employees are entitled to the same benefits as local employees which are:

a) Benefits in kind – medical, surgical, pharmaceutical, hospital and any other benefits, in whichever form, provided they are necessary and appropriate to restore the injured party’s health and ability to work or earn and to recover for active life;

b) Benefits in cash – compensation, pensions, and subsidies provided for under Law nº 98/2009.

Finally, an important matter to avail of these rights: employers must inform their employees in writing about the policy number and insurance company.

Vocational Training

A crucial aspect in the life of every company is the quality of its human resources. Portuguese companies acknowledge the need to improve the skills of their employees and promote their socio-professional integration. Pursuant to the Portuguese Labour Code, employees are entitled to 40 annual hours of vocational training to be provided by the employer. For employees under a fixed-term agreement, the number of hours is proportional to the duration of the agreement. Such training will normally cover the employee’s professional activities, but may also focus on IT, health and safety in the workplace and foreign languages.

Companies must provide training to at least 10% of their workforce per year and draft appropriate plans. It should be noted that training hours are paid and therefore employees do not lose remuneration. Any training outside of the employee’s working hours are paid at the normal rate during the first two hours. Beyond those first two hours the employee is entitled to overtime pay.

1. What is the Protocol for Regulated Labour Migration?

On April 1, the Portuguese Government and several business confederations reached an agreement with regard to a new protocol for regulated labour migration. The main purpose of the protocol is to speed up the issuance of a work visa which should occur within 20 days from the day the applicant attends the appointment at the relevant consular post.

2. Who signed the Protocol?

On the private sector side, the Protocol was signed by the Portuguese Business Confederation, the Portuguese Farmers’ Confederation, the Portuguese Confederation of Commerce and Services, the Portuguese Tourism Confederation and the Portuguese Confederation of Construction and Real Estate.

On behalf of the State, the Protocol was signed by the Directorate-General for Consular Affairs and Portuguese Communities (DGACCP in Portuguese), the Agency for Integration, Migration and Asylum (AIMA), the Borders and Foreigners Coordination Unit of the Internal Security System (UCEF in Portuguese) and the Institute for Employment and Vocational Training.

3. How will the Protocol work?

The Protocol will work in five steps. First, the employer must send an email to the DGACCP with all the necessary documentation to apply for a visa.

Then, within two days, the file is sent to the relevant consular post, which will schedule the applicants’ appointment to present the original documentation. The application will then be analyzed and the visa issuance process will begin.

In a fourth phase, AIMA and UCEF will issue opinions on the granting of visas. Finally, the consular posts will make the final decision.

4. Who can benefit?

The Protocol is not open to every company, being only available to confederations and associations of employers. However, certain criteria also apply:

A) Business associations must have at least 30 members and their annual turnover must be equal to or greater than 250 million euros.

B) Companies must have 150 or more employees, an annual turnover equal to or greater than 25 million euros, no debts with the Social Security or the Tax Authority, and have a valid certificate of good standing.

5. Which are the employers’ obligations? 

Employers will have to guarantee ethical recruitment, ie, offer a valid employment contract, provide an opportunity for vocational training and the learning of the Portuguese language, and also guarantee access to suitable accommodation.