The short answer

You can hire someone as a freelancer (recibos verdes) — but you cannot use freelance invoicing to disguise an employment relationship. What determines legality is not what you put on paper but the actual nature of the work.

The legal difference between the two situations

Independent contractor (freelancer):

• Has autonomy over when, how and where they work
• Can work for multiple clients simultaneously
• Uses their own equipment and resources
• Bears the economic risk of the outcome

Employee (employment contract):

• Follows instructions, schedules and procedures set by the company
• Works exclusively (or almost exclusively) for the company
• Uses the company's equipment and resources
• Gets paid regardless of the outcome

Presumed employment status (since 2023)

The Agenda do Trabalho Digno (Decent Work Agenda) strengthened the legal presumption of employment. If at least two of the following criteria are present, an employment contract is presumed to exist:

1. The activity is carried out on premises belonging to the company
2. The equipment is provided by the company
3. The contractor works on a schedule set by the company
4. They receive a fixed and regular payment
5. They perform management or supervisory functions
6. They work predominantly for the company (more than 50% of their invoicing)

If two or more of these points apply, the Social Security authority and the courts may reclassify the relationship as an employment contract — with all the retroactive consequences that entails.

The risks of using freelance contracts improperly

For the company: fines from the ACT (Authority for Working Conditions) and Social Security. Retroactive payment of contributions. Compensation for unpaid entitlements.

For the worker: no unemployment protection. No adequate sick leave. No holiday pay or Christmas bonus (subsídio de Natal). To understand what the worker loses, read what the Christmas bonus is and the minimum wage in 2026.

When freelance contracts are genuinely appropriate

• A consultant or external specialist hired for a one-off project
• A designer, lawyer or accountant who provides services to multiple clients
• An external trainer brought in for a specific session
• A contractor or subcontractor with their own business

The practical test: can the person turn down work? Do they work for other clients? Do they use their own equipment? If the answer is yes to all three — it is most likely a genuine service agreement.

How to regularise if you are in a grey area

Regularising proactively — switching to an employment contract — comes with more favourable conditions than a forced reclassification. And from the very first day of the contract, time tracking is mandatory.

This article is for informational purposes only. For analysis of your specific situation, please consult a specialist lawyer.