On 30 May 2017, Law No. 29/2017 concerning the posting of workers in the framework of the provision of services was published in the Official Journal of the Portuguese Republic.

This Law, which entered into force on 31 May, establishes something new by comparison with the previous rules: the contractor shall be jointly and severally liable with the service provider, as a direct subcontractor, for the payment of any outstanding net remuneration, corresponding to the minimum remuneration provided by law, agreement or employment contract, to the worker of the service provider posted to the Portuguese territory.

In addition, in the case of posting of workers to the Portuguese territory, the Law establishes the following obligations for companies established outside Portugal:

  • To submit a statement, until the commencement of the service provision, which shall comply with the form provided by ACT and shall be submitted to ACT by electronic means.
  • To submit, within 1 year from the termination of the posting, whenever requested by ACT: the employment contract or an equivalent written document, payslips, time-sheets indicating the beginning, end and duration of the daily working time and proof of payment of the remuneration.
  • These documents shall be kept in paper or electronic form, in the Portuguese language or accompanied by a legally certified translation, during the full period of posting, and shall be available in an accessible and clearly identified place, for purposes of inspection by ACT.
  • To designate a contact person to liaise with ACT and to send out and receive documents and information, as well as to work with social partners with regard to collective bargaining.

Breach of these obligations may constitute a serious administrative offence.