Article 242 of the Labour Code establishes a regulatory framework that allows employers to manage periods of closure for holidays, a very common practice in certain sectors during the summer or Christmas / New Year period.
Therefore, whenever compatible with the nature of the activity, the employer may close the company or establishment, in whole or in part, for employees’ holidays:
- For up to fifteen consecutive days between 1st May and 31st October;
- For a period longer than fifteen consecutive days or outside the period referred to in the previous paragraph, when so established by a collective bargaining agreement or upon a favorable opinion from the works council (if one exists);
- For a period longer than fifteen consecutive days between 1 May and 31 October, when the nature of the activity so requires;
- For five consecutive working days during the Christmas school holiday period;
- For one day falling between a public holiday occurring on a Tuesday or Thursday and a weekly rest day (a so-called “bridge day or bridge holiday”).
By 15 December of the preceding year, the employer must inform the employees concerned of any closure to be implemented in the following year under paragraph (e) above.
In summary, the employer may close the establishment, in whole or in part, for holidays in the situations referred to above, provided that such decision is communicated in advance and respects employees’ rights. It is important to underline that, as a rule:
- Holidays must be scheduled by agreement between the employer and the employee;
- In the absence of an agreement, the employer shall set the holiday period, which may not begin on the employee’s weekly rest day, after consulting the works council or, failing that, the inter-union committee or the trade union committee representing the employee concerned (if any);
- In small, medium or large companies, the employer may only set the holiday period between 1st May and 31st October, unless the collective bargaining agreement or the opinion of employee’s representatives accepts a different period;
- The holiday plan must be defined up by 15 April of each year and displayed in the workplace between that date and 31st October.
In the specific case of company closure on bridge days, the employer must inform the employees concerned by 15 December of the preceding year.
Good planning ensures that employees can take the holidays to which they are entitled without compromising the company’s productivity, particularly in sectors affected by seasonality.
Moreover, it helps avoid legal sanctions and potential labour disputes arising from lack of prior notice or unilateral holiday scheduling.
Therefore, as the end of the year approaches, it is essential for employers to start preparing and defining their 2026 holiday plan, ensuring that all employees take their rest within the legal timeframes and that holiday periods are set in a balanced manner for both parties.
The Labour Law Department of Belzuz Abogados, S.L.P. – Sucursal em Portugal has qualified professionals who can provide legal advice to individuals and companies regarding their rights and obligations, particularly in matters related to holidays.