IMPACT – MEDIUM
What is the change? Portugal has implemented the EU directive on enforcement of posted workers rules, imposing new requirements on companies sending workers to Portugal for temporary assignments.
What does the change mean? Effective immediately, employers must notify the Authority for Labor Conditions before a posted worker begins the assignment in Portugal. Employers must appoint a liaison to act between authorities and the sending company. Employers must also keep certain documents available for inspection in Portugal, including employment contracts, payslips, proof of salary payments and timesheets. Documents not originally in Portuguese must be accompanied by translated copies.
Background: Portugal adopted the new rules to comply with the EU’s 2014 directive on posted workers. Under the rules, notifications must be submitted by email and must include the name of the posted worker, the service provider, the duration of the posting (including start and end dates), the address of the work site and the nature of the services the posted worker is providing. Authorities must be notified not only before posted workers begin their assignments, but also when there are any changes to the nature or length of the assignments. Companies must keep the documents listed above for at least one year after an assignment has ended and should be able to make them available upon request for inspection.
BAL Analysis: Affected companies should make sure they follow Portugal’s new secondment procedures and documentation requirements. It is recommended that all posted employees who started their assignments in Portugal after May 31 complete the declaration. Questions about individual cases should be directed to a BAL professional.
This alert has been provided by the BAL Global Practice group and our network provider located in Portugal. For additional information, please contact your BAL attorney.
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