Bank Holidays in Portugal

Portugal, known for its vibrant culture, stunning landscapes, and a balanced lifestyle, places great importance on its bank holidays. For both employers and employees, understanding how bank holidays function in Portugal is essential to ensure compliance with labour laws and maintain smooth business operations. In this blog, we’ll explore the key aspects of Portuguese bank holidays, the rights and obligations of employees and employers, and how these holidays can affect businesses.

What are bank holidays in Portugal?

Bank holidays in Portugal are public holidays when businesses and government offices are typically closed. These holidays are deeply rooted in the country’s history and culture, reflecting its religious and traditions. They commemorate religious events, national milestones, and historical moments that have shaped Portugal’s identity.

How many bank holidays are there in Portugal?

In Portugal, there are 13 official bank holidays observed nationwide. Additionally, certain municipalities may have extra holidays unique to their regions. Here’s a list of the national bank holidays in Portugal:

1. New Year’s Day (Dia de Ano Novo) – January 1st
2. Good Friday (Sexta-feira Santa) – Date varies
3. Easter Sunday (Páscoa) – Date varies
4. Freedom Day (Dia da Liberdade) – April 25th
5. Labor Day (Dia do Trabalhador) – May 1st
6. Portugal Day (Dia de Portugal) – June 10th
7. Corpus Christi (Corpo de Deus) – Date varies
8. Assumption of Mary (Assunção de Nossa Senhora) – August 15th
9. Republic Day (Implantação da República) – October 5th
10. All Saints’ Day (Dia de Todos os Santos) – November 1st
11. Restoration of Independence Day (Restauração da Independência) – December 1st
12. Immaculate Conception (Imaculada Conceição) – December 8th
13. Christmas Day (Dia de Natal) – December 25th

Working on bank holidays in Portugal: What are the rules?

The rules around working on bank holidays in Portugal are clear but allow for some exceptions, particularly in essential sectors or through collective agreements.

• General rule: Employees are generally not required to work on bank holidays. However, businesses in certain industries like tourism, healthcare, and retail may require employees to work on these days, in which case they are entitled to extra compensation or time off.
• Labor Day (May 1st): This is the only bank holiday where working is strictly prohibited for most workers, except those in essential services.
• Regional variations: Some municipalities in Portugal have additional public holidays, such as local patron saint days, which can affect certain regions more than others.
• Collective agreements: Some industries may have specific agreements that outline rules for working on bank holidays, often offering compensatory time off or additional pay for those required to work.

Compensation for working on bank holidays

Employees who work on bank holidays in Portugal are entitled to specific compensation, as outlined by Portuguese labour laws or individual employment contracts. Typically, this compensation can take the form of higher pay, where employees may receive an increased wage, often double the standard rate. According to recent feedback, all overtime hours worked on weekend days, public holidays, and part-time days should be compensated at 100% additional pay, resulting in a total of 200% of the regular wage.

In some cases, instead of additional pay, employees may be offered an alternative rest day to compensate for working on a bank holiday. It is essential for employers to communicate these compensation structures clearly and ensure compliance with local labour regulations.

Impact of bank holidays on businesses

Bank holidays can significantly influence how businesses operate, particularly in sectors that provide customer services or rely on continuous operations. Here’s how they might be impacted:

• Operational planning: Many businesses, especially in the retail and hospitality sectors, need to plan their operations around bank holidays, adjusting working hours or closing for the day. Early planning ensures smooth business operations and avoids disruptions.
• Staff scheduling: For businesses that remain open, managing staff schedules is critical. Employers must ensure adequate coverage while respecting employees’ rights to rest, and offering appropriate compensation for those working on holidays.
• Customer communication: It’s essential for businesses to inform clients or customers of any changes in opening hours or service availability during bank holidays. This can be done through signage, social media, or email updates.

Obligations for employers

Employers in Portugal have specific responsibilities when managing bank holidays. First, they must comply with labour laws that govern employees’ rights regarding public holidays, including mandatory days off, such as May 1st. Additionally, employers are responsible for providing fair compensation to workers who are required to work on these holidays, either through higher pay or alternative time off. It is also crucial that employers inform employees in advance if they are expected to work on a bank holiday, ensuring that they fully understand the compensation and terms involved.

Holiday entitlement and bank holidays

In Portugal, bank holidays are generally provided in addition to the statutory annual leave entitlements. However, there are important considerations to keep in mind. Bank holidays are separate from annual leave and typically do not impact the number of vacation days an employee can take, except when a holiday falls on a weekend, in which case it may not be counted as an additional day off.

For part-time employees, entitlement to bank holidays depends on their regular work schedule. If the holiday falls on a day they are normally scheduled to work, they are entitled to the day off. If it does not, they do not receive compensation for that holiday.

Navigating bank holidays in Portugal

Bank holidays in Portugal are a fundamental part of the country’s culture and play a significant role in shaping the business environment. For employers, understanding the legal obligations and planning around these holidays is key to ensuring smooth operations. Employees should also be aware of their rights, particularly when it comes to working on bank holidays and the compensation they are entitled to receive.

At Parakar, we assist businesses in navigating the complexities of employment law, including managing bank holidays in Portugal. Whether you need help with compliance, workforce management, or HR-related services, we’re here to support you every step of the way.