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Madeira: Labour Regulation

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On this Page:

- MADEIRA REGULATORY ENVIRONMENT
- MADEIRA WORK PERMITS

Madeira Regulatory Environment

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.

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Madeira Work Permits

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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