Remote work and Portuguese law: three obligations companies keep overlooking

Remote work is no longer the exception in many Portuguese companies. Yet its formalisation continues to fail on basic points — three of which are particularly common findings in Labour Authority (ACT) inspections.

The first is the written agreement. The Labour Code (Código do Trabalho) requires a specific written agreement for teleworking, which may form part of the original employment contract or be added as a supplemental clause. A mere reference in an internal policy is not sufficient.

The second is the expense allowance. The law provides for reimbursement of the additional costs incurred by the worker — internet, electricity, equipment. This may be handled by a fixed amount (with its own tax treatment) or on a reimbursement basis. Failing to provide it is one of the most common grounds for a fine.

The third is the right to disconnect. The employer must refrain from contacting the worker outside working hours, except in cases of force majeure. This requires more than a policy — it demands a concrete mechanism, such as scheduled sending or message automation, that demonstrates actual compliance.

We recommend a light internal audit of telework contracts before any organisational change or termination process.