1

Changing Consultant to Employee In Portugal

We currently have a consultant who lives in Portugal who has proved to be very valuable to the business.  My CEO is wishing to employ him full time, whilst still based in Portugal and has asked me what the options are.  I am very new to international employment and before gaining legal advice wanted to see what the thoughts are here.  I am also mindful that we currently also employ a Portuguese worker based in the UK who wishes to move home so we will experience issues with that also.  Any thoughts and suggestions would be very useful.

479 views
  • In some countries in Europe you can employ staff directly by registering just as a foreign employer without setting up an entity. We did this in France and we still are required to pay all social contributions. I believe it may be the same in Portugal. However there can be no commercial activity from your employees.

    Other options are to set up a legal entity or have a local firm employ the employee on your behalf. It depends on your budget and what your business goals are in Portugal.

    I would suggest getting in touch with a local Payroll/HR company (who can speak English) that can handle all of this for you and provide basic advice. Regarding the employment contract, you may need to contact an employment lawyer to prepare you one. You will also need legal advice for day to day HR in Portugal if you do not have knowledge in this area already.