Fixed term employment contract

The fixed term employment contract expires at the term of its time limit, provided that the public employer entity or the public employee shall not communicate in writing the willingness to renew it, until 30 days before the time limit expires. If the public employer entity communicates the willingness to renew it, the public employee’s agreement shall be presumed if, within the time limit of 7 working days, this one shall not show in writing a contrary position

The expiry of the contract that shall not arise from the willingness of the public employee confers to this one the right to an indemnity, and a distinction must be made:

a) The indemnity to be granted to a term contract concluded before the entry into force of the Labour Law in Public Functions

b) The indemnity to be granted to a term contract concluded after the entry into force of the Labour Law in Public Functions

In the referred to hypothesis in the subparagraph a), under the terms of the article 12, paragraph 2, of the introductory part of the Law no 35/2014, of 20 June, a distinction of two periods must be made:

i) Regarding the contract time duration until 31 July 2014 the indemnity due is that one provided for in the Employment Contract in Public Functions Regime, 20 days of compensation for each full year of service

ii) In relation to the subsequent period, that is to say, to the contract time duration subsequent to 1 August 2014, the indemnity shall be governed by provisions set out in article 293, paragraph 3 of Labour Law in Public Functions. Therefore, the public employee’s indemnity shall correspond to 18 days of basic salary for each full year of seniority, and:

- The value of the basic salary for the purposes of indemnity’s calculation shall not be higher than 20 times the minimum guaranteed compensation

- The global value of the indemnity shall not be higher than 12 times the monthly basic salary of the public employee or, in cases provided for in that article, to 240 times the minimum monthly guaranteed compensation