Madeira
is part of Portugal, and part of the EU, and
is therefore subject to a full and growing array
of social and worker legislation.
Portugal
itself has strong trades unions, and many sectors
of the economy operate under collective agreements,
which have more impact on work-place conditions
than the law as such.
There
is a national minimum wage, and maximum working
hours which are set nationally, but usually
overriden by collective agreements which are
tougher. Employees receive 14 months' pay each
year, being 12 working months plus one holiday
and one bonus month. Paid holiday entitlement
is 22 working days.
Sickness
and other social benefits are generous, and
the employer pays a high national insurance
contribution as a result. Dismissal of workers
is difficult and/or expensive.
Amended
in 2009, the Labour Code contains detailed provisions
for collective agreements, adhesion agreements
and arbitration rewards. The law also provides
for company agreements, ie. agreements made
between a trade union and an employer with regard
to a single enterprise.
As part of the EU, Madeira freely admits citizens
of EU member states. EU workers must obtain
a residence card but are not required to have
work permits. Non-EU workers are required to
have both a residence visa and a work permit.
Companies employing more than five workers must
limit foreign workers to 10% of the workforce.
Companies can request exceptions to this limit
if the foreign workers have special technical
expertise. EU and Brazilian workers are not
considered foreign for the purpose of calculating
the 10% limit.
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