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Main > News > Compensation for Unlawful Dismissal: How Payments Are Calculated and What Employers Must Reimburse
May 16, 2026
Compensation for Unlawful Dismissal: How Payments Are Calculated and What Employers Must Reimburse
Compensation for Unlawful Dismissal: How Payments Are Calculated and What Employers Must Reimburse
Compensation for Unlawful Dismissal: How Payments Are Calculated and What Employers Must Reimburse

Employees who are unlawfully dismissed have the right to challenge the decision in court and choose either reinstatement or financial compensation. Portugal’s Labour Code protects workers in cases where dismissal occurs without valid grounds or for ideological reasons. The court determines compensation individually, taking into account both the employee’s base salary and the employer’s degree of fault. For each full year of service, or part thereof, compensation ranges from 15 to 45 days’ pay. For example, an employee earning €1,500 per month with five years of service could receive between €3,750 and €11,250. In addition, the employer must reimburse all lost wages accrued during the legal proceedings. Material taken from https://t.me/s/lepta

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