What are fixed-term and uncertain-term contracts?
Portuguese law provides several hiring models, including fixed-term employment contracts. This legal category covers two types:
- Fixed-term contract (definite) – The parties agree on a specific end date.
- Uncertain-term contract – The contract has a limited duration but no predetermined end date; its termination depends on a future event.
Both contracts are time-limited. The key difference lies in how the end of the contract is determined: by a set date (fixed-term) or by the occurrence of a specific event (uncertain-term).
When can an uncertain-term contract be used?
It may only be concluded in situations expressly provided by law, justified by an event that is time‑limited but without a precise date. Typical examples include:
- Temporary replacement of an absent employee.
- Completion of a specific task, project, or work.
Duration of an uncertain-term contract
As a rule, it lasts for the time required to replace the absent worker or to complete the activity or project that justified the hire, but it may not exceed 4 years.
Can an uncertain-term contract be renewed?
No. It ends when the underlying condition is fulfilled. However, the employer must give prior notice. Lack of notice does not renew the contract but obliges the employer to pay compensation equivalent to the missing notice period.
Conversion into a permanent contract
An uncertain-term contract is converted into an open-ended (permanent) contract when:
- After the notice period, the employee continues to work; or
- No notice is given and the employee remains in service for 15 days after the activity is completed or the replaced worker returns.
Marta Vera-Cruz | [email protected]
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