Legal Obligations of Hiring a Housekeeper in Portugal
Margarida Tempera | Lawyer
In Portugal, hiring a housekeeper, whether through a business or as a private household employer, comes with a web of legal responsibilities that are easy to overlook.
Domestic work often takes place behind closed doors, but it is by no means outside the reach of labour law. In fact, Portuguese labour law is comprehensive and employee-centred, extending robust protections to housekeepers and imposing numerous obligations on their employers. Ensuring full compliance isn’t just a bureaucratic formality; it is essential to avoid legal pitfalls and to uphold a fair working relationship from the very start.
In recent years, Portugal has doubled down on ensuring domestic employees (such as housekeepers, nannies or caretakers) enjoy treatment on par with other workers. A special legal regime for domestic service contracts has existed since 1992 (Decree-Law 235/92), and in 2023, the “Decent Work Agenda” reforms (Law 13/2023) updated this regime to further harmonise domestic workers’ rights with the general Labour Code.
Under Portuguese law, a housekeeper is not just a casual helper but an employee in the eyes of the law, entitled to full labour protections. If an individual works under your authority, direction and supervision in exchange for pay, that arrangement legally constitutes an employment relationship, and it makes no difference that the work occurs in a private home or that you might think of the person as “like family”; the presence of subordination and remuneration means labour legislation applies fully.
Because domestic workers are employees (not “friends” or informal helpers), they are covered by the Portuguese Labour Code, the Social Security system and even occupational safety regulations. One immediate consequence is that the employment relationship must be formalised in line with the law, typically through a proper contract.
As seasoned employment lawyers often stress, an employment contract is not a mere formality but a legal necessity that defines the rights and obligations of both parties. In Portugal, the contract forms the backbone of the working relationship and must strictly adhere to Labour Code provisions. Properly documenting the terms protects you as the employer by providing clarity and predictability, and it also fosters trust by reassuring the housekeeper of their lawful entitlements. In other words, the contract is the foundation of a stable, professional arrangement, and making sure it’s done right is in everyone’s interest.
One practical question is whether the contract needs to be in writing. Portuguese law does allow open-ended (permanent) employment to be agreed verbally in some cases, but in practice, you should always put the terms in writing for a housekeeper’s role. In fact, many situations make a written contract obligatory, for example, if you engage the housekeeper on a fixed-term basis or if the worker is a foreign national, a formal written contract is mandatory. Even when hiring a local person for an indefinite period, providing written documentation of the key terms is essential to avoid ambiguity and meet legal information duties, as failing to document a special arrangement properly can lead to unfavourable legal presumptions. For instance, if you initially agree on part-time hours but don’t put that in writing, the law will presume the employment is full-time, which could unexpectedly inflate your obligations. In short, a written contract is the gold standard and often a legal requirement for domestic employment in Portugal.
A well-structured written contract for a housekeeper should capture all the essential terms of the job, clearly identify both the employer and the employee and state the address of the workplace (for instance, your home), along with the start date of employment. If the arrangement is not permanent, say you only need help temporarily, then the contract must specify the end date and the objective reason for that term; under Article 5 of Decree-Law 235/92, a fixed-term contract for domestic service is permitted when the work is temporary or transitional (in which case the general Labor Code rules apply, with a maximum of two years, extendable to four with renewals), or, if agreed solely by the parties without such justification, its duration including renewals cannot exceed one year, with failure to meet these requirements rendering the term clause null. The contract should also describe the housekeeper’s duties and expected work schedule, including the normal daily or weekly working hours and rest breaks, so both parties know when work will be performed. Because domestic roles can vary from cleaning and cooking to caregiving, spelling out the tasks and the degree of autonomy the worker will have in carrying them out helps prevent misunderstandings.
Crucially, the contract must set out the pay and benefits the housekeeper will receive. At a minimum, wages must meet the national legal minimum (for example, €870 gross per month in 2025 for full-time work in Portugal), and if you provide any in-kind benefits like meals or lodging, their monetary value can count toward the salary only up to a legal limit (such in-kind benefits may not exceed 50% of total remuneration). The contract should specify how and when wages are paid (e.g. monthly via bank transfer) and include any agreed overtime rates for work beyond the normal hours. It is also wise to confirm the statutory time-off entitlements in writing: housekeepers are entitled to paid annual leave and must receive the traditional holiday and Christmas bonuses, each roughly equivalent to an extra month’s pay. Finally, the contract can outline the notice period either party must give to terminate the employment and any severance terms applicable. Even domestic staff enjoy protections against abrupt dismissal, so defining notice periods (which in Portugal scale with tenure) helps ensure any parting of ways is handled lawfully and respectfully.
Of course, once you have a signed contract in place, your obligations don’t end there since several administrative duties must be fulfilled to keep the employment compliant. You are required to register the housekeeper with the Portuguese social security system before they start working, and thereafter to remit the required contributions every month. Failure to register the worker or to pay the correct contributions exposes you to fines, interest charges and the possibility of inspections by the authorities.
In addition, you must obtain mandatory work accident insurance for your housekeeper from day one. This insurance covers any injuries or accidents that occur in the course of work, for example, if the housekeeper slips and hurts herself while cleaning, the policy will pay for medical treatment and wage replacement during her recovery. If you neglect to carry work-injury insurance, you essentially assume full liability for any such incidents, a risk that can lead to substantial civil liability and even criminal consequences in severe cases. Simply put, registering your employee and securing insurance are not optional steps but fundamental legal requirements alongside the contract.
Furthermore, to these registration and insurance steps, you must also ensure the housekeeper’s day-to-day working conditions meet the legal standards for working time, rest and time off. Domestic employees generally should not work more than 40 hours per week, and they are entitled to at least 11 consecutive hours of rest each day and at least one full day off in every seven days. Any additional hours beyond the agreed schedule count as overtime, which must be compensated at the statutorily required premium rates, typically an extra 25% pay for the first overtime hour and higher rates for further hours or work during weekends and holidays. Work on public holidays is either to be avoided or to be specially rewarded: if a housekeeper does have to work on an official holiday, the law grants them a paid day off on another date (or equivalent pay in lieu) to compensate. These rules ensure that even in a private home, the employee’s health and well-being are protected by adequate rest periods and fair compensation for any long or unusual hours. Just as you would in a business setting, you need to schedule your housekeeper’s work in compliance with these limits and allow their earned days of paid leave each year to be taken in full.
For an employer, the risks of not formalising a housekeeper’s employment properly are significant. If you were to hire someone “off the books” without a contract or fail to register them for social security, you would be violating the law and exposing yourself to serious liability. Labour authorities in Portugal are empowered to investigate cases of unregistered work or sham arrangements, and if they determine that an employment relationship exists, they can retroactively enforce all the obligations you should have met. That could mean you are ordered to pay the worker any unpaid entitlements (e.g. back wages, holiday and Christmas bonuses, and even compensation for unlawful dismissal if you ended the arrangement without just cause), along with all owed social security contributions, plus interest and substantial fines. Similarly, if someone is mislabelled as an “independent contractor” when in reality they work under your direction as an employee, the authorities or courts can requalify the arrangement as a formal employment contract with retroactive effect. The law will then treat it as if a proper open-ended contract had existed all along, which may include recognising the worker’s full seniority and rights from day one. For example, using a fixed-term agreement without a valid justification (or failing to put a fixed term in writing) will cause the law to deem the housekeeper a permanent employee, with all the dismissal protection that permanent status carries. In a nutshell, attempting to bypass the formal contract or other obligations can backfire disastrously, the worker can claim, and the state can enforce everything they are legally owed, leaving the non-compliant employer facing an expensive reckoning.
In summary, taking the time to properly formalise your housekeeper’s employment is both a legal imperative and a sound investment in a stable working relationship. A written contract and compliance with labour laws provide predictability and legal security for both you and the worker, creating a solid foundation built on clarity and mutual respect.
By adhering to the rules on contracts, working conditions and social contributions, you not only avoid fines and disputes but also demonstrate your commitment to fair and lawful employment, something that fosters loyalty and trust. Ultimately, doing things “by the book” protects your household or business and ensures your housekeeper is treated with the dignity and benefits that Portuguese law guarantees to every employee.
If you need help drafting a legal employment contract for your housekeeper, nanny, or any other employee, our legal team is available to assist you.
