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Changing jobs is an important professional decision. However, before ending an employment contract, it is essential to understand your rights, particularly regarding unused holiday entitlement and related payments.
Under Portuguese employment law, terminating an employment contract does not automatically mean losing the right to payment for unused annual leave.
What Happens to Unused Holiday Entitlement?
According to Article 245 of the Portuguese Labour Code, when an employment contract ends, employees are generally entitled to receive:
- Payment for accrued but unused annual leave.
- The corresponding holiday allowance.
- Proportional holiday entitlement and holiday allowance relating to the period worked during the year of termination.
These amounts should be included in the final settlement between the employee and employer.
The calculation depends on several factors, including the length of employment, the start date, the termination date and any annual leave already taken.
Specific rules apply to contracts lasting no more than 12 months or ending in the calendar year following the year of admission, which may limit the total entitlement.
Before your employment contract ends, you should confirm your outstanding holiday entitlement, leave already taken and any holiday allowances previously paid.
Depending on the employment contract and circumstances of termination, the final settlement may also include other outstanding payments.
Understanding your employment rights is essential to ensure that all amounts due are correctly calculated and paid.
Professional advice can help clarify your entitlements and prevent errors in the final settlement.
