Lowtax Network

Back To Top

Madeira: Labour Regulation

Regulatory Environment

This page was last updated on 11 Oct 2018.

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 trade unions, and many sectors of the economy operate under collective agreements, which have more impact on workplace conditions than the law as such.

There is a national minimum wage and maximum working hours which are set nationally, though these are often overridden by collective agreements, which are tougher. Employees receive 14 months' pay each year: 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 can be difficult and 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, i.e.. agreements made between a trade union and an employer with regard to a single enterprise.



Back to Madeira Index »