What are the main employment and worker-related procedures that companies need to know?

What are the steps to hiring a worker?

To hire a worker in Portugal, follow these steps for compliance and a smooth onboarding experience:

1. Draft the Employment Contract:
   1. Prepare a compliant employment contract, outlining job duties, working hours, salary, benefits, and probation terms. If you need tailored contracts, Rauva’s legal partner can assist.
   2. Ensure both employer and employee review and sign the contract. A signed contract is mandatory before any work commences.
2. Notify Your Accountant in Advance:
   1. Inform your accountant about your intention to hire as soon as the contract is signed, prior to the employee’s start date.
   2. The accountant is responsible for mandatory notifications to Portuguese Social Security (Segurança Social), which must be submitted at least one day before employment begins.
3. Gather Required Documentation:
   1. The accountant will provide you with a detailed form requesting essential employee information—including full name, date of birth, address, nationality, NIF (tax number), NISS (Social Security Number), IBAN, and contact details.
   2. Collect copies of identification, tax ID, and, when applicable, residency or work permits.
4. Social Security Registration:
   1. The accountant will register the new hire with the Segurança Social Directa portal.
   2. Timely registration is crucial to avoid fines and ensure employees are eligible for healthcare and social protections from day one.
5. Additional Legal Notices:
   1. For some contract types or industries, further authorities (e.g., ACT—Authority for Working Conditions) may require notification. Your accountant or legal advisor will inform you if relevant.
6. Payroll Setup:
   1. Once all data is complete, the accountant configures payroll, including salary, tax deductions, and Social Security contributions (TSU).
   2. Employees must be given payslips each month and receive salary payments to their bank account on agreed dates.
7. Best Practices for Onboarding:
   1. Provide the employee with written company policies, health & safety procedures, and internal contacts.
   2. Arrange relevant training, introductory meetings, and set up payroll/banking details.
   3. Keep records securely for regulatory audits and ongoing HR management.
   
   By following these steps and working closely with your accountant and legal advisors, hiring in Portugal can be straightforward and fully compliant with labor and fiscal requirements.