By right, in Portugal, all employees are entitled to at least 22 working days of annual leave per year. The employer is required to post the holiday plan by 15 April. Organising a team's leave without everyone wanting August at the same time requires advance planning, clear criteria, and some diplomacy.

Basic rules (Labour Code)

• Minimum duration: 22 working days per full year of employment
• When they accrue: after 6 months in the year of hire. Thereafter in January each year
• Holiday plan deadline: post by 15 April (for May to October). 30 days' notice for November to April
• Tie-breaking criteria when there are conflicts: operational needs → seniority → school-age children → spouse at the same company

For correct planning, do not forget the 2026 national public holidays and the local public holiday for your municipality.

The most sought-after periods

August (first fortnight). Christmas and New Year. Holy Week. Long weekends in April and June.

Strategies to manage:

• Annual rotation — those who did not get August this year take the Christmas period next year
• Groups or teams — split the team into two groups that never take leave in the same period
• Minimum cover — require that at least a percentage of the team is always present
• First choice by seniority

How to build the plan step by step

• Define blocked periods — production peaks, audits, trade fairs
• Open bookings in January for the whole year
• Collect requests in an organised way
• Check for overlaps — how many people want the same week?
• Resolve conflicts before publishing — much easier to adjust before the plan is made public
• Post by 15 April and notify employees individually
• Update when necessary by mutual agreement or urgent operational need (with cost compensation)

A question many managers have

Can an employee work during their scheduled holiday period? The answer is more complex than it seems. Read whether an employee can work during their holidays.

Untaken leave: what happens

In Portugal, leave cannot be replaced with money — except on termination of employment. Leave from year N not taken by 30 April of year N+1: it is forfeited without compensation — unless the employer is at fault. If the employer prevented the employee from taking leave, the employee is entitled to triple compensation.

Holiday plan and time tracking

Holiday days must be marked in the system with the correct code 'holiday' — not as an absence. In Picco, holiday days can be configured directly on the platform, keeping monthly reports accurate for payroll processing.

picco.damastor.com