Issuing green receipts (receipts for services rendered) is a very common practice in freelance professional situations. However, when a professional adheres to set hours and is subject to a company's rules, just like other employees, issuing green receipts is no longer permitted.

Learn all about "false self-employment receipts" and how this practice can be combated through this article from Advogados em Braga. 

What is a "fake green receipt"?

A "false green receipt" exists when a person works continuously for a company but is considered self-employed because they issue green receipts. 

In short, the worker has set hours and work dynamics similar to those of other workers. contract, But it doesn't have one. 

What does the law say about fake green receipts?

The law acknowledges that "false self-employment" is a reality and that many self-employed workers are actually employed. 

O Article 12 of the Labor Code It makes it clear that there is a presumption of an employment contract whenever certain rules are declared that clearly establish a relationship of subordination. 

Even if a service agreement exists, this reality can change into a relationship of... Employment contract, as soon as evidence of such is provided. 

“"I think I'm working with a fake self-employment contract": a step-by-step guide to taking action.

If you suspect you are in a situation involving "false self-employment receipts," there are points you should consider:

• Gather evidence such as emails, schedules, orders, receipts, communications, or even testimonies from colleagues;
• Compare your situation with the legal criteria;
• Submit a formal complaint to ACT, if the suspicion is confirmed;
• Consult a lawyer specializing in labor law, where they can assist with the retraining process and any potential compensation claim.

How to report a fake green receipt?

If you want report In a case of "false green receipt" (a type of fraudulent self-employment receipt), the following steps should be followed:

• Online, through the ACT website – Authority for Working Conditions;
• In writing, by means of a letter addressed to the regional delegation of ACT;
• In person, at an ACT counter.

Presumption of an employment contract: the criteria that matter

According to Article 12 of the Labor Code, an employment contract is considered to exist if at least two of the following points are present: 

• The activity is carried out on premises owned by the company or established by the company;
• The equipment and/or work tools belong to the company;
• The worker adheres to fixed hours;
• Salary payments are made periodically;
• The worker performs managerial or integration functions within the company structure;
• The work is supervised by company personnel or subject to the organization's rules.

How many criteria do I need to meet for there to be a presumption?

In order for there to be a presumption, it is necessary to meet two of the criteria described above. The company is then responsible for proving otherwise, should it feel the need to defend itself. 

In practice, the ACT (Portuguese Labor Authority) and the courts tend to recognize an employment relationship when there is hierarchical subordination and economic dependence.

Who can file a complaint with ACT?

To file a complaint regarding "false self-employment receipts," there are people who can do so with the ACT (Authority for Working Conditions). These people are the affected worker, colleagues, union representatives, or anyone who knows what is happening. 

Is reporting to ACT confidential?

Complaints to ACT are confidential. Even in situations where legal intervention is necessary, the complainant's identity is only revealed if agreed upon by the complainant or if absolutely necessary. 

What happens after the complaint is filed?

Following a complaint regarding "false self-employment receipts," there are steps that must be followed in all cases:

1. ACT opens an inspection process for the company;
2. If evidence of subordinate work is confirmed, it proposes the reclassification of the employment relationship;
3. The worker is then recognized as an employee with an employment contract;
4. The company may be fined and required to rectify the situation, including retroactive payment of entitlements (vacation pay, allowances, social security).

I work on a platform (e.g., delivery drivers). Does Article 12-A apply?

Yes. Article 12-A of the Labor Code aims to regulate workers on digital platforms. 

In these situations, it is immediately apparent that an employment contract exists, unless the company proves otherwise. 

What sanctions are applied to the employer?

An employer who is sanctioned for "false self-employment" is subject to:

• Fines ranging from €2,040 to €61,200, depending on the severity and the number of workers involved;
• Obligation to enter into an employment contract with the employee;
• Retroactive payment of contributions and labor rights;
• Potential criminal liability in cases of repeat offenses or tax fraud.

How can a lawyer help resolve cases of fraudulent self-employment receipts? 

A lawyer specializing in labor law can:

• Assess whether there is evidence and evidence of subordination to the company;
• To help formalize the complaint with ACT;
• Representing the worker in legal proceedings for retraining;
• Claim back pay and compensation;
• Negotiate an out-of-court settlement with the company.

To have Solicitor This is very important, since there may be long-term employment relationships or even unpaid wages. With the Lawyers in Braga You can count on all the legal support you need in cases of "false self-employment receipts," at every stage of the process and for any various needs you may have. 

Conclusion 

"False self-employment receipts" are considered an illegal practice, as they deprive workers of fundamental rights. Portuguese law considers this practice illegal in order to protect workers. 

If you are experiencing this situation or know someone who is, you can file a complaint with ACT anonymously.