Been made redundant and don't know what to do now? The first step is to know your rights as an employee.

With this article by Catarina S. Gomes, you will be better informed about Labour Law and, specifically, about your rights if you are dismissed.

Employment Law

O Employment Law It is the area of law that aims to regulate the relationship between the employer and the employee. Labour law, therefore, defines the rights and duties of employees and employers.

Dear Catarina S. Gomes, Lawyers in Portugal, We have a team experienced in Employment Law!

Types of termination of employment contract

There are several reasons why a contract of employment may be terminated. To help you feel more secure at this time, it's best to be aware of the different types of employment contract terminations.

Expiry

This type of termination of an employment contract occurs when there is a fixed-term contract that has expired at the end of the period stipulated between the worker and the employer. When there is an inability to work, whether due to retirement, disability, or old age, the contract's expiry can also be considered.

Revocation by mutual agreement

Revocation by mutual agreement concerns a dismissal negotiated between the employer and the employee. In this type of termination, both parties define the terms and an agreement is drawn up which includes pertinent information.

Collective redundancy

Collective dismissal refers to the termination of two or more employment contracts in small companies and one or more departments in medium and large companies. This termination originates from the employer and reflects reasons beyond the worker and their duties.

Dismissal for reasons attributable to the employee

Dismissal on grounds attributable to the employee refers to the termination of the contract at the employer’s initiative when the employer considers that there is a reason justifying the dismissal, that is, just cause. Some examples of just cause:

• Unlawful disobedience of orders given by superiors in the chain of command;
• Non-compliance with or opposition to the fulfilment of a judicial or administrative decision;
• Breach of the rights and safeguards of the company’s workers;
• Unjustified absences from work which directly cause serious prejudice or risk to the company, or whose number reaches, in each calendar year, five consecutive or ten interpolated, regardless of prejudice or risk;
• Repeated provocation of conflicts with company workers;
• Kidnapping or, in general, a crime against the liberty of the persons referred to in the previous sub-paragraph;
• Repeated lack of interest in conscientiously fulfilling the duties inherent to the position or job role to which they are assigned;
• Damage to the serious proprietary interests of the company.;
• False declarations regarding the justification of absences;
• Negligent breach of workplace health and safety rules.;
• Practice, within the company, of physical violence, insults, or other offences punishable by law against a company employee, a member of the corporate bodies, or an individual employer not belonging to these, their delegates or representatives.;
• Abnormal productivity reductions.

Dismissal due to the abolition of the post

Por motivos estruturais, como uma situação de crise onde é necessário reestruturar uma empresa, podem existir despedimentos por extinção de um posto de trabalho. Esta cessação só se verifica se não se puder aplicar o despedimento coletivo, se as razões indicadas não forem atribuíveis ao empregador ou ao trabalhador e se não for possível manter a relação de trabalho, nem existam na empresa contratos a termo para tarefas correspondentes.

Dismissal for unsuitability

Dismissal on grounds of unsuitability may occur in the following situations:

• A gradual decline in productivity or the quality of work;
• Repeated breakdowns in workstation-related equipment.;
• In the face of risks to the safety and health of the contractor, other workers, or third parties;
• When an employee takes on a management role and ultimately fails to meet the previously agreed targets.

Termination of contract at the employee's initiative

Termination of the contract at the employee’s initiative occurs where there is just cause. In this case, the employer is not required to give notice, and the company must pay compensation to the employee.

Complaint by an employee

The worker may terminate the contract, with or without just cause. In this case, they must provide notice with a minimum period of 30 or 60 days, depending on whether they have up to two years or more than two years of seniority, respectively.

If notice is not given within the prescribed time limits, the employer is entitled to compensation from the employee. In the case of fixed-term employment contracts, notice may be given 30 or 15 days in advance, depending on whether the contract is for a period of at least 6 months or less.

Redundancy pay

Redundancy pay depends on the reason for dismissal. Thus:

• In the event of termination of the contract by the employee on valid grounds, the employee shall be entitled to compensation amounting to between 15 and 45 days’ basic pay plus a length-of-service allowance for each full year of service, taking into account the amount of the pay and the degree of wrongdoing on the part of the employer.
• In case of dismissal due to expiry, there is a payment of compensation. The amount of this compensation depends on the date of your contract.
• If it is a collective dismissal, the workers receive compensation which is divided in the same way as dismissal due to termination of contract.

Besides this, in case of dismissal, you are entitled to receive holiday pay and outstanding amounts, if applicable, along with unemployment benefit (if you do not resign or are not dismissed for just cause).

To find out more about how much compensation you might be entitled to, simply visit the website of the Authority for Working Conditions (ACT)!

For other matters relating to employment law, please see:

• Public Employment
• Collective Labour Agreements

When an employee is dismissed in the UK, they have certain rights. These generally depend on the reason for dismissal and how long they have been employed. **Common Rights and Entitlements:** * **Notice Period:** Employees are usually entitled to a statutory minimum notice period, or their contractual notice period if it's longer. This period increases with length of service. * Less than 1 month's service: No statutory notice period, but if dismissed immediately, pay in lieu of notice may be due if contractually agreed. * 1 month to 2 years' service: 1 week's notice. * 2 years' service or more: 1 week's notice for each year of service, up to a maximum of 12 weeks. * **Statutory Redundancy Pay:** If an employee is dismissed because their job is no longer needed (redundancy), and they have at least two years' continuous service, they are entitled to statutory redundancy pay. The amount is calculated based on age, length of service, and weekly pay (up to a certain limit). * **Payment for Untaken Holiday:** Employees accrue holiday throughout their employment. If they are dismissed, they must be paid for any statutory holiday entitlement they have accrued but not taken. * **Wages or Salary Owed:** Any wages or salary earned up to the date of dismissal must be paid. This includes any outstanding overtime pay. * **Pension Contributions:** Contributions to any pension scheme must be handled according to the scheme's rules and relevant legislation. * **Protection Against Unfair Dismissal:** If an employee has at least two years' continuous service (with some exceptions for specific professions or cases), they may be protected against unfair dismissal. For a dismissal to be fair, the employer must have a valid reason (e.g., misconduct, capability, redundancy, illegality, or "some other substantial reason") and follow a fair procedure. If a dismissal is deemed unfair, an employee can make a claim to an Employment Tribunal. * **Protection Against Wrongful Dismissal:** This relates to breaches of contract, for example, if an employer fails to give the correct notice period and doesn't pay in lieu of notice. * **References:** While not legally mandated to provide a reference, if an employer chooses to provide one, it must

Being aware of your rights when you are made redundant helps prevent unfair situations for the employee. There are essential rights you should be aware of:

The employer has a duty to give you notice of your dismissal through a period of notice.;

• All employees have the right to request their personal file from their employer.;
• No employee can be dismissed without legal grounds.;
• It is illegal to dismiss a worker for the following reasons:
  • To join or belong to a trade union.;
  • Complaints concerning working conditions or requests for their improvement.;
  • Complaint or report of illegal activities that occurred in the workplace, whether or not they directly involve the worker.;
  • Political or ideological reasons.
• It is illegal to dismiss a worker without any justification.

Beyond these rights, there are different rights for different types of termination of an employment contract:

• In the case of dismissal for just cause, the worker has the right to defend themselves and present evidence against the accusations. They have 5 days from the date they received the information to request the suspension of dismissal and initiate the corresponding legal action, which must be done within 60 days.
• Regarding collective dismissal, employees have the right to be notified of this dismissal in writing, 15 days for employees with less than 1 year of service, 20 days for employees with 5 or more years of service, 60 days for employees with 10 or more years of service, and 75 days for employees aged 50 or over. In addition, the employee is entitled to compensation corresponding to 12 days of basic salary and length-of-service increments for each full year of service.
• In the case of redundancy due to job elimination, you have the right to receive this information with the minimum notice and compensation applicable to collective redundancy.
• In the event of dismissal due to unsuitability, you must be given the same minimum notice, which varies according to your length of service, as applies to collective dismissal, and you will be entitled to compensation for loss of employment on the same terms as such dismissal.

If you are looking for help to understand your rights or to take certain steps against your employer, contact Catarina S. Gomes for the best assistance.

Are you looking for a lawyer with experience in Employment Law? Contact us! We are located in Braga!

What does the law say?

O Decree-Law no. 7/2009, This regulates all matters concerning the termination of an employment contract. According to this decree, dismissal without just cause is prohibited. As mentioned previously, this decree also stipulates that an employment contract may be terminated by:

• Expiry;
• Revocation;
• Dismissal due to conduct attributable to the worker.;
• Collective dismissal;
• Redundancy;
• Dismissal for unsuitability;
• Resolution by the worker;
• Worker's report.

In addition to this, according to this decree, the employer must provide the employee with a work certificate stating the dates of engagement and termination of the contract, as well as the position held by the employee, along with all documents provided for in Social Security legislation.

Notice of termination: What is it?

Notice is the communication, by the employer or the employee, of intentions to terminate an employment contract. Notice guarantees the rights of the employee and the employer, as without this notice both parties could be prejudiced.

Notice is not required in cases of dismissal for just cause, and its rules vary depending on the type of contract, the contract duration, and the employee's length of service with the company.

Notice from the employer

An employer's notice period must be given in the following types of dismissal:

• Dismissal due to conduct attributable to the worker.;
• Redundancy due to job elimination;
• Dismissal for unsuitability;
• Collective redundancy.

This notice must be given within the following timeframes:

• 7 to 15 days for workers on a probationary period;
• 5 days for service time of less than 1 year;
• 30 days for service time between 1 and 5 years;
• 60 days for service time between 5 and 10 years.;
• 75 days to service time exceeding 10 years.