Yes, you can penalise employees for lateness in Portugal — but only within strict limits. Here is what is legal, what is not, and real examples to illustrate.

What you can legally do

Deduct pay proportionally: time not worked does not have to be paid. If an employee arrives 15 minutes late, you can deduct those 15 minutes from their pay. This applies to each individual instance.

Issue a formal written reprimand for repeated lateness. If the pattern continues, escalate to a registered reprimand and, in persistent cases, a disciplinary procedure.

Real examples

5 minutes late: proportional deduction is legal. Repeated without justification: formal warning.

30 minutes late: same rules apply. Proportional deduction + formal warning if repeated.

Arrives at 10am instead of 9am, every day: documented pattern of non-compliance. Can lead to disciplinary procedure and, in extreme cases, dismissal for just cause after a formal process.

What you cannot do

You cannot: deduct more time than the employee was actually late; apply disproportionate penalties for minor isolated incidents; discriminate (applying rules to some employees but not others); dismiss without a formal disciplinary process.

The key: accurate records

Any deduction or disciplinary action requires objective proof. A time tracking system that records clock-ins to the second is the foundation. Without records, any sanction can be challenged. Find out more at damastor.com/picco.

This article is for informational purposes only and does not constitute legal advice.