Information for Candidates

At the heart of Portugal’s temporary employment ecosystem lies a robust regulatory framework, meticulously overseen by the Instituto do Emprego e Formação Profissional – Instituto Público (IEFP, I.P.). This venerable institution stands as the gatekeeper, ensuring that only those agencies meeting stringent criteria can operate within the nation’s borders.

For those seeking to navigate this landscape, whether as a client or a job seeker, the process of verification is paramount. The journey begins with identifying the TWA’s headquarters, a crucial first step in unraveling the legitimacy of an agency. Armed with this information, one can then embark on a quest through the digital corridors of the IEFP’s official registry, accessible at IEFP.  This portal serves as a beacon of transparency, illuminating the path for those seeking assurance in their employment endeavors.

The significance of this certification process cannot be overstated. It stands as a bulwark against malpractice, a shield protecting the rights and interests of all parties involved in the intricate dance of temporary employment.

International Operations

Portuguese TWAs must adhere to domestic regulations even when operating internationally:

•       TWAs incorporated and with tax residency in Portugal must fulfill all legal and mandatory requirements of their home country.
•       These requirements apply to activities outside Portugal, regardless of the regulatory environment in the third country.
•       Compliance with Portuguese regulations is non-negotiable for international operations.

Understanding the distinction between these two arrangements is crucial for legal compliance:

Labour Leasing:

1. Employees are made available for unspecified work performance.
2. Invoicing is based on the number of hours worked.
3. Work instructions and supervision are provided exclusively by the client.
4. The client decides on the number of employees and their qualifications.
5. The client is responsible for the work environment and procedures.
6. Working hours and holidays are primarily determined by client needs.

Contract for Work and Services:

1. Specific, agreed-upon services or outcomes are owed to the client.
2. Invoicing is based on anything BUT the number of hours worked.
3. Work instructions and supervision are provided exclusively by the service provider.
4. The service provider decides on staffing and qualifications.
5. The service provider is responsible for work procedures and environment.
6. The service provider determines working hours and holidays.
7. A civil liability insurance policy is required for the service provider.

Engaging in illegal worker leasing can result in severe repercussions:

1. Financial Liability: If a TWA fails to pay worker salaries, the client may be held responsible for payment.
2. Operational Suspension: Detection of illegal or undocumented foreign workers can lead to immediate suspension of activities.
3. License Revocation: TWAs may have their licenses revoked or indefinitely suspended.
4. Client Penalties: Clients may be banned from using leased workers for extended periods.
5. Heavy Fines: Both TWAs and clients may face fines potentially reaching hundreds of thousands of euros.
6. Criminal Charges: Clients, even in other EU/EEA countries, may become involved in criminal investigations by Portuguese authorities.
7. International Crime: Unauthorized labor leasing, especially involving third-country nationals, can be interpreted as facilitation of illegal immigration, a priority crime in the EU.

The Portuguese Social Security system, in its wisdom, has unfurled a digital banner of verification. To ensure compliance and authenticity of documents:

1. A1 Certificate Verification: Portuguese Social Security provides an online service to verify individual PDA1 documents.
2. Verification Process: Enter the verification code found on the last pages of A1 certificates and add it here. 

Navigating the landscape of temporary employment in Portugal requires diligence, thorough understanding of regulations, and strict adherence to legal requirements. Both TWAs and their clients must prioritize compliance to avoid severe legal and financial consequences while benefiting from the flexibility of temporary employment arrangements. Regular verification of certifications and documentation is essential in maintaining a lawful and efficient working relationship in this sector.

If you have any questions or queries, we are available to answer any queries and questions, our contact details.

The A1 or PDA1 certificate shows which national Social Security and Labour Law legislations a worker is subject to, that is, that apply to the worker.  The A1 or PDA1 certificate is issued by the Social Security institution where the worker habitually resides (the sending country).  It is a fundamental document within the context of intra-EU posting or worker mobility within the EU and EEA.

All workers legally employed in country “A” by a TWA that are temporarily seconded or leased to a client (user undertaking) in country “B” must possess an A1 certificate or prove that it has been requested. Mere proof or request is considered satisfactory (or sufficient) for up to 3 months after the workers have been leased by almost all the Labour Inspection Authorities within the EU and EEA.  This tolerance period is provided because many of the Social Security institutions within the EU and EEA only issue the A1 certificates several weeks or months after they have been requested by the TWA established in another EU or EEA country. (Note: Portugal´s Social Security body is actually better than most in this regard).

Not all clients (user undertakings) in the host (or, receiving) countries aware of the existence and/or the importance of the A1 certificate, but those that are refuse to work with foreign TWAs unable or unwilling to provide these certificates (or, at least, proof of request) within a reasonable period of time.

Why do clients (user undertakings) in the host (or, receiving) countries consider the A1 certificates so tremendously important?  Because they want to be certain that the workers that have been leased to them are, in fact, legally employed by the TWA established in another EU or EEA country,  also they want to be certain that the workers were authorized to be temporary deployed, don´t want to be at risk of having to pay social security contributions, wage tax to their own national authorities, don´t want to risk committing infractions and paying heavy fines and are aware they may also have to pay the salaries of the leased workers if the TWA established in the other EU or EEA member state fails to do so – which is always a possibility if the workers have not been legally employed.

As one can see, the A1 certificate serves for many purposes. It greatly safeguards the client (user undertaking) that leases the worker from a TWA established in another EU or EEA member state from enormous risks.

A TWA established in Portugal that does not possess a license to engage in temporary employment activities is NOT eligible to receive A1s.

The TWA license (in Portuguese, “alvará”) must be uploaded to Social Security´s web portal for each individual A1 certificate that is submitted. Failure to so will inevitably result in rejection of the request.

Below, a caption of the Portuguese Social Security web platform. Shown are the documents that must be uploaded when submitting a request for an A1 certificate – the permit (=license) is one of the documents required. As one can observe, in Portugal, the process of requesting and obtaining an A1 certificate is no stroll in the park – it is considerably demanding.