The possibility of a worker being forced to retire has raised doubts, especially after news from other European countries. In Spain, the law allows, in certain collective agreements and with specific conditions, the termination of the contract based on age. But does the same happen in Portugal?
In the private sector, the answer is, as a rule, no. In Portugal, a company cannot force a worker to request retirement just for reaching a certain age. Even so, the Portuguese legal framework provides for specific effects when there is retirement due to old age or when the worker reaches 70 years of age, which changes the practical impact for workers and companies.
What Portuguese law says about mandatory retirement
In Portugal, companies cannot, in general, force a worker to retire just for reaching the normal age for accessing a pension. Age alone does not give the company automatic power to impose departure.
According to article 343 of the , the employee’s retirement due to age or disability is grounds for the contract to expire. However, article 348 of the same law provides that, if the employee remains in service after 30 days of being aware, by both parties, of his retirement due to age, the contract will be considered fixed-term.
In practice, this means that the worker can continue working after retirement, but the contract is subject to a special regime. According to the same article 348, this contract is valid for six months, renewed for equal and successive periods, may terminate with 60 days’ notice on the employer’s initiative or 15 days’ notice on the employee’s initiative, and its expiry does not give rise to compensation.
There are situations in which the contract may end
Although there is no “forced retirement” as a general rule, there are scenarios in which the termination of the contract may occur after retirement.
One of these situations occurs when the worker retires due to old age and remains employed by the company. In these cases, at the end of the 30 days provided for in article 348 of the CLT, the contract becomes considered a fixed-term contract with the special regime provided for by law, which allows its termination due to forfeiture.
There is another relevant situation: according to the same article 348, the regime also applies to workers who reach 70 years of age without having retired.
Even so, this transition does not equate to a direct obligation to leave imposed by the company as soon as the worker reaches normal retirement age, but it does mean that the law provides specific consequences for the continuation of the employment relationship after retirement due to old age or at the age of 70.
Differences compared to the Spanish model
Contrary to what happens in Spain, where the tenth additional provision of the Estatuto de los Trabajadores allows, in certain collective agreements, clauses for termination of contracts based on age, in Portugal this mechanism is not provided for in the same way.
According to Spanish law, these clauses depend on strict requirements, such as the worker’s right to 100% of the ordinary contributory pension and the linking of the measure to employment policy objectives, namely the permanent and full-time hiring of at least one new worker.
In Portugal, the Labor Code does not contain an equivalent rule that allows companies to terminate contracts based on age to promote the hiring of new workers.
Retirement age continues to rise
Another relevant factor is the normal age for accessing the old-age pension, which has gradually increased in Portugal. According to Ordinance No. 358/2024/1, in 2026 this age is 66 years and 9 months. In 2027 it rises to 66 years and 11 months, in accordance with Ordinance No. 476/2025/1.
This means that many workers remain in the job market longer, whether by necessity or choice.
Still, reaching this age does not automatically imply the end of professional activity.
Reform and work can coexist
In Portugal, it is possible to accumulate the old-age pension with income from work. Article 62 of Decree-Law No. 187/2007 establishes that this accumulation is, as a rule, free.
There are, however, exceptions. The law prohibits accumulation when the pension results from the conversion of an absolute disability pension. And, in the case of early pensions due to age flexibility or very long contributory careers, it is also prohibited to work in the same company or business group for the three years following access to the pension.
For companies and workers, this flexibility can be relevant, especially in sectors where experience continues to be valued.
What to take into account
For those who are close to retirement age, it is important to know the legal framework and understand the associated rights and duties.
Each situation may vary depending on whether or not there is retirement due to age, whether or not the worker remains in service after retirement, and whether or not it is early retirement.
Therefore, before making decisions, it makes sense to consult official information, namely the Labor Code, the gov.pt portal and Social Security.
Portuguese reality maintains worker protection
Despite the changes observed in other countries, the Portuguese model still does not provide, in the private sector, a general rule that allows the company to force a worker to retire just for reaching a certain age.
Even so, the law provides for concrete effects when there is retirement due to age or when the worker reaches 70 years of age, so the continuity of the employment relationship must be analyzed on a case-by-case basis, in light of the rules in force.
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