Flash News – Service Commission Regime: the risk of not formalising it and its consequences for the employer

In the current case, an employee had begun performing duties as Director Coordinator in February 2014, with a written agreement only being formalised two months later, seeking to frame those duties within the service commission regime. Subsequently, the employer terminated the commission and reassigned the employee to his former position, with a corresponding reduction in his remuneration.

The Lisbon Court of Appeal was unequivocal in stating that a service commission agreement must be in writing, as this requirement constitutes a formal condition ad substantiam. This means that its absence determines the invalidity of the scheme; it cannot be replaced by other means, nor can it be regularised with retroactive effect.

In the specific case, the Court recognised the employee’s right to the professional category of Director Coordinator and ordered the employer to pay the corresponding salary differences.

At Belzuz Abogados, S.L.P., we are frequently approached by clients seeking advice on hiring employees for management or high-responsibility positions, where the service commission regime is often considered as a suitable legal framework.

The Labour Law Department of Belzuz Abogados, S.L.P. – Sucursal em Portugal has qualified professionals who can provide legal assistance in defining the most appropriate contractual solutions, as well as ensuring compliance with the applicable formal requirements, thereby preventing significant legal risks for organisations.

error: Content is protected !!