# Remote Work in Portugal: Agreement, Expenses, Fines [Back to Blog](/en/blog/) ![Worker in a remote work arrangement on a laptop at home](/blog/teletrabalho-portugal-lei/cover.jpg) You have half the team working from home, some a few days a week, others full time. You agreed it all over chat, nobody signed anything, and you pay them as usual. It sounds simple. Until an employee claims two years of expense compensation, or until the ACT asks where the written remote work agreement is. Since Law 83/2021 and the amendments in Law 13/2023, remote work in Portugal is no longer an informal arrangement. It has clear rules: a written agreement, expense compensation, equal treatment, and even a duty not to contact the worker outside working hours. This guide covers everything an SME needs to know to have remote work in order. ## What remote work means in law Article 165 of the Portuguese Labour Code defines remote work as work performed under legal subordination to an employer, at a location not determined by the employer, using information and communication technologies. Note two things. First, there is subordination: a remote worker is an employee like any other, not a contractor. Second, the location is not determined by the employer, which is what distinguishes remote work from on-site work in an office the company chose. It does not matter whether it is a home, a coworking space or a café. If the person works remotely through technology, it is remote work, and all the rules that follow apply. ## The written agreement is mandatory Here is the most common mistake in Portuguese SMEs: having people working remotely with no written agreement. Article 166 requires remote work to always depend on a written agreement between the parties. That agreement can sit in the initial employment contract, where the person is hired to work remotely from the outset, or in a separate document, where an on-site employee moves to remote work. At a minimum, the agreement must contain: - Identification, signatures and address or registered office of the parties - The work to be performed, with express reference to the remote work arrangement - The normal working period - The alternation arrangement, where there are on-site days and remote days - Ownership of the equipment and who is responsible for installation and maintenance - The establishment or department the worker is assigned to and who they report to #### Remote work can be neither imposed nor demanded If the employer proposes remote work, the worker can refuse without having to justify it and without any penalty. Equally, outside the cases in Article 166-A, the employer is not obliged to accept a request for remote work. It is an agreement: both sides have to want it. ## Who has a right to remote work There are situations where the employer cannot simply say no. Article 166-A grants a right to remote work, where compatible with the role, to: - A worker with a child up to 3 years old - A worker with a child up to 8 years old, where both parents meet the conditions and exercise the right in successive periods, or in single-parent families - A worker with a child with a disability, chronic illness or cancer, with no age limit - A non-primary informal carer, for a maximum of four years In these cases, the employer can only refuse on the grounds of compelling operational requirements of the company, and the refusal follows a specific procedure, with the possibility of ACT involvement. It is not a decision to be taken lightly over chat. ## Duration, alternation and returning to the office Article 167 deals with the duration and termination of the agreement. Remote work can be agreed for a fixed or indefinite term. Where it is for a fixed term, it cannot as a rule exceed the statutory duration limits and, at the end, the worker returns to their previous on-site arrangement. Either party can also terminate the agreement on the terms set out in it. The important point: always write into the agreement what happens at the end and how it is unwound. Without that, you are at the mercy of interpretation. ## Equipment and expense compensation This is the part companies find most costly and that generates the most complaints. Article 168 states that the employer is responsible for providing the equipment and systems needed for remote work and for interaction between worker and company. And, above all, it requires the employer to compensate the worker for all additional expenses they demonstrably incur as a direct consequence of remote work: electricity, internet, and the use or wear of equipment. The good news is that there is a tax regime setting out how far that compensation is untaxed. #### Order 292-A/2023 | Limits exempt from income tax and social security The daily compensation amounts that do not count as the worker’s income are: €0.10 per day for electricity, €0.40 per day for internet and €0.50 per day for the use of a personal computer or IT equipment. In total, up to €1.00 per working day of remote work. These limits are increased by 50% where they derive from a collective bargaining instrument. Note one detail: if the company provides the computer, the €0.50 element relating to personal equipment no longer applies. And amounts above these limits can still be paid, but become taxable as income. The calculation method and the frequency of the compensation should be set out in the agreement. ## Equal treatment: the same rights Article 169 is clear: a remote worker has the same rights and duties as other workers, with no reduction in pay. In practice, that means they keep their meal allowance, even working from home. They keep the right to training, career progression and participation in the life of the company. They cannot be discriminated against for being remote, whether in opportunities or in appraisals. ## Monitoring, privacy and home visits The employer can monitor a remote worker’s activity, but with limits. Article 169-A permits work to be organised and checked, provided the person’s privacy is respected. Article 170 prohibits means of continuous surveillance and protects the private and family life of the worker and their family. If the company needs to visit the place of work, for example to check equipment or safety conditions, it can only do so between 9am and 7pm, with the worker present and with at least 24 hours’ notice. ## The right to disconnect: the duty not to make contact This is one of the newer provisions that most companies are unaware of, and it applies to all workers, not only those working remotely. The employer has a duty to refrain from contacting the worker during rest periods, save in cases of force majeure. No messages, emails or calls at 10pm to deal with matters that can wait until the next morning. #### Contacting outside working hours is a serious administrative offence Breaching the duty not to make contact is a serious administrative offence. Depending on the company’s turnover and the degree of fault, fines can reach €9,690 (95 UC, with UC = €102 in 2026). For an SME with turnover below €500,000, a serious administrative offence ranges from €612 to €1,224 for negligence and from €1,326 to €2,652 for intent. ## Safety, health and enforcement Even working from home, all occupational safety and health legislation applies (Article 170-A). The worker remains covered by workplace accident insurance, and the company retains its risk prevention duties. Enforcement of these rules falls to the ACT (Article 171), which checks everything from the existence of the written agreement to compliance with safety and health conditions. ## And working time records do not go away Working remotely does not remove the obligation to record working time. The [time clock rules](/en/blog/mandatory-time-clock-portugal/) apply just the same: you have to know when the team starts, finishes and takes breaks, whether they are in the office or at home. [Time clock software](/en/) with geolocation covers both cases without hardware. And there is a direct link here with the duty not to make contact. If you do not know what hours people work, how do you prove you respected their rest periods? How do you justify that the 9pm message was force majeure and not routine? The record is your evidence. #### Track your team's time, wherever they are TeamYo records clock-ins, clock-outs and breaks for remote workers, with optional geolocation. You comply with both the remote work and time clock rules, without hardware or spreadsheets. [Request a free account](/en/contact/?lead_source=blog_product&requested_locale=en) ## Common mistakes to avoid Having no written agreement is mistake number one. Agreeing remote work over chat does not satisfy Article 166 and leaves the company with no defence in an inspection. Not compensating expenses is the second. Many companies think the salary covers it. It does not: the law requires compensation for electricity, internet and equipment. Cutting the meal allowance for people working from home is illegal. The equal treatment rule in Article 169 does not permit reductions in pay because of the working arrangement. Contacting the team at any hour, on the assumption that being at home means being permanently available, breaches the duty not to make contact and is a serious administrative offence. Continuously monitoring a remote worker, with permanent monitoring software or cameras, conflicts with Article 170 and with the GDPR. ## Frequently asked questions **Does the remote work agreement have to be in writing?** Yes. Article 166 of the Portuguese Labour Code always requires a written agreement, whether in the initial contract or in a separate document. It must state the work to be performed, the normal working period, ownership of the equipment and responsibility for expenses. **Is the company required to pay remote work expenses?** Yes. Article 168 requires compensation for demonstrated additional expenses (electricity, internet and equipment). Order 292-A/2023 sets the limits exempt from income tax and social security: €0.10 for electricity, €0.40 for internet and €0.50 for equipment per day, up to €1.00/day. **Who can require the employer to grant remote work?** Under Article 166-A, workers with a child up to 3 years old (or up to 8 in certain conditions), with a child with a disability or chronic/cancer illness, and non-primary informal carers. The employer can only refuse on the grounds of compelling operational requirements of the company. **Can the company contact a worker outside working hours?** No, save for force majeure. There is a duty to refrain from contact during rest periods. Breaching it is a serious administrative offence, with fines that can reach €9,690 depending on turnover and fault. **Does someone working remotely keep their meal allowance?** Yes. Article 169 guarantees the same rights and duties as other workers, with no reduction in pay. That includes the meal allowance, training and career progression. **Is recording working time still mandatory for remote work?** Yes. The working time recording rules apply regardless of location. The record is also how you prove that rest periods and the duty not to make contact were respected. ## Conclusion Remote work is no longer an informal arrangement. It carries a mandatory written agreement, expense compensation, equal treatment, privacy rules and a duty not to contact the team outside working hours. For most SMEs, the risk is not bad faith, it is improvisation: agreeing everything over chat, not compensating expenses, making contact at any hour. It only takes one complaint or one ACT inspection for an oversight to turn into a fine of thousands of euros. Does your company have signed remote work agreements and recorded working time for the whole team, whether in the office or at home? ### About the author ![Andre Nabais](/authors/andre-nabais.jpg) #### Andre Nabais Co-founder of TeamYo. Passionate about simplifying HR processes for small and medium businesses. ### Want to simplify leave management? Try TeamYo free for teams up to 5 employees. [Start Free](/en/contact/?lead_source=blog_newsletter&requested_locale=en) ## Related Posts [![Mandatory training in companies in Portugal](/blog/formacao-obrigatoria-empresa-portugal-lei/cover.jpg)](/en/blog/mandatory-training-portugal/) 24 February 2026 ## [Mandatory Training in Portugal: 40 Hours a Year and Fines](/en/blog/mandatory-training-portugal/) 40 hours of mandatory training per worker: what Article 131 requires, how to organise it, accrued hour credits and ACT fines. A guide for SMEs. 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