According to the Portuguese Labor Code, overtime is defined as work performed outside the regular working hours. How does overtime actually function?
1 – What is considered overtime?
The Portuguese Autoridade para as Condições do Trabalho (ACT) states that “if there is an exemption from normal working hours limited to certain hours per day or week, overtime is the work done beyond those limits.”
Furthermore, “If there is an exemption observing the normal work period, any work that exceeds it is considered overtime.”
However, the following are not considered overtime:
- Work performed on a normal day by an exempt worker, without subjecting to maximum limits of normal work periods;
- Work done to compensate for suspensions not exceeding forty-eight hours, when there is an agreement between employer and employee;
- A tolerance of fifteen minutes to complete the service;
- Professional training, even if conducted outside working hours, as long as it doesn’t exceed two hours daily;
- Work done in addition to the usual period when the IRCT permits it;
- Work performed to compensate for work absences, initiated by the worker, provided both actions have the employer’s agreement.
2 – Is overtime work mandatory?
“Yes. Workers are obliged to perform overtime unless they expressly request and are granted an exemption due to valid reasons,” clarifies ACT, noting some exceptions.
Exemptions from overtime work include:
- Pregnant workers (Article 59, No. 1);
- Workers with children under 12 months old (Article 59, No. 1);
- A worker during the entire breastfeeding period, if necessary for their health or the child’s (Article 59, No. 2);
- Minors are prohibited from performing overtime (Article 75, No. 1), except to prevent or repair severe damage and if the minor is at least 16 years old (Article 75, No. 2).
Additionally, the following are not obliged to perform overtime:
- Workers with disabilities or chronic illnesses (Article 88);
- Student workers, except for force majeure (Article 90, No. 6);
- Caregiver workers, as long as they have recognized status and while the need for assistance continues (Article 101-G, No. 1).
3 – Can an employer require overtime at any time?
“No. An employer can only require overtime to address temporary and transient increases in workload that do not justify hiring additional workers, in cases of force majeure, or when necessary to prevent or repair serious damage to the company. The employer must inform the employee in writing about the applicable overtime regime, within seven days from the start of the contract,” according to the ACT website.
4 – What are the limits on the duration of overtime?
In companies with “up to 49 workers, no worker can perform more than 175 hours of overtime per year.”
In companies “with 50 or more workers, no worker can perform more than 150 hours of overtime per year.”
Moreover, “no worker can perform more than two hours of overtime on a normal working day.”
There are further limits: “On weekly rest days (mandatory or complementary) and public holidays, no worker can perform more hours than the normal daily work period; on the additional half-day rest (usually Saturday), no worker can perform more hours than half the normal daily work period. In part-time work, the annual overtime limit is 80 hours (or time proportional to the normal work period of full-time workers, if higher).”
5 – How is overtime paid?
According to ACT, overtime performed from May 1, 2023, onwards is compensated with the hourly pay rate plus the following increases:
Up to 100 hours annually:
- 25% for the first hour or fraction thereof and 37.5% for each subsequent hour or fraction on a working day;
- 50% for each hour or fraction on mandatory or complementary weekly rest days, or on public holidays.
Above 100 hours annually:
- 50% for the first hour or fraction thereof and 75% for each subsequent hour or fraction on a working day;
- 100% for each hour or fraction on mandatory or complementary weekly rest days, or on public holidays.
