Professional training is no longer an ‘extra’ in Portuguese companies. It is now a fundamental legal obligation, with a direct impact on labour compliance, business sustainability and the organisation’s reputation.
The legal framework is clear: continuing education is a right of the employee and an obligation of the employer, with rules, deadlines, mandatory reporting, and significant financial consequences in case of non-compliance.
In this article, we explain what the law requires, how to comply, and the risks of not investing strategically in training.
What does the law say about compulsory vocational training?
The Labour Code stipulates that all companies must guarantee 40 hours of continuous training per employee per year. This obligation applies to:
- Open-term contracts;
- Fixed-term contracts with a duration of three months or more (on a pro rata basis).
In addition, training must cover at least 10% of the company’s employees each year, ensuring a collective rather than ad hoc approach to qualification.
Training may focus on:
- In the role performed;
- In related areas;
- Or in strategic and cross-cutting areas, such as digital technologies, occupational health and safety, or foreign languages.
Training hours management: deadlines and critical rules
The law allows for some flexibility, but with clearly defined limits:
- Training may be brought forward or deferred for up to two years;
- If not provided within this period, the hours are converted into training credit in favour of the employee;
- This credit may be used at the employee’s initiative, subject to prior notification to the employer.
In the event of termination of the contract, the outstanding training hours must be paid for. Currently, these credits are non-waivable, even in termination agreements.
The role of the Single Report in oversight
Compliance with professional training is monitored through the Single Report, a document that must be submitted annually.
In Annex C, companies must declare:
- In Annex C, companies must declare: a) All training activities carried out;
- The training area (CNAEF);
- The duration;
- Whether the training was provided by the employer or the employee.
Omission or incorrect completion may:
- Prevent access to public incentives;
- Raise alerts during ACT inspections;
- Increase fines in the event of inspections.
Fines and risks of non-compliance
Failure to undergo mandatory training constitutes an administrative offence. Fines vary depending on:
- The company’s turnover;
- The degree of fault (negligence or intent).
In larger companies, the costs can run into several thousand euros, in addition to the impact on reputation and loss of internal confidence.
Training as a strategic asset, not a cost
More mature companies view training as:
- A legal risk mitigation tool;
- A pillar of talent retention;
- A factor in productivity and innovation;
- A key element of social sustainability.
Complying with the law is the bare minimum. Using training as a competitive advantage is what really sets you apart.
