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PORTUGAL_LEGALSYSTEM_PRESENTATION.pptxLegal system in Portugal
PORTUGAL
Navigating Portugal's Legal Landscape
ABC Manufacturing opening a factory in Portugal, CEO's concerns about the legal system.
Overview
| The modern legal system & the basis of the legal system | |
| The court structure and process | |
| The court structure, processes and Cultural influences on the legal system | |
| The impact of constitution and legislation on business law & Contract rules | |
| Intellectual property Protection and Employment law | |
| The key legal risks |
THE MODERN LEGAL SYSTEM IN PORTUGAL
Overview of Portugal's Legal System
Modern Legal System in Portugal:
Part of civil law legal systems based on Roman law
Main laws include Constitution (1976), Civil Code (1966), Penal Code (1982), Labor Code (2003), and Commercial Societies Code (1986).
Basis of the Legal System
Code-based Civil Law Justice System:
System based on civil law with written legislation as the main source.
Judges interpret and apply law; they cannot create law.
No rule of precedent exists in Portugal.
Influence of the Legal System
Global Impact of Portuguese Law:
Portuguese legal system influences legal systems of Portuguese Language Countries and former territories of the Portuguese Empire
Portuguese Legal System
Semi-presidential Republic:
Three independent branches: executive, legislative, judiciary.
President as head of state, prime minister leads the government
Bridge to Latin America, Europe, Asia, and Africa with strong cultural ties
Unique Geo-strategic Position
Portugal's Strategic Importance:
EU member since 1986, attracting foreign investment
Population of 10.3 million, over 20 million tourists yearly
Bridge to Latin America, Europe, Asia, and Africa with strong cultural ties
EU Membership and
Legal Influence
European union Influence on Portuguese Legal System:
Portugal's civil law system influenced by EU laws and treaties
Commercial laws substantial based on EU law.
Court structure
The Portuguese judiciary system is not unitary - four independent categories or orders of courts: Constitutional, Judicial, Administrative and Auditors.
Portugal's court system is organised in three different levels.
first instance courts
intermediate appellate courts
the Supreme Court, which is the final appeal court
Court structure
| Court | Jurisdiction | Key Responsibilities |
| Constitutional Court | Constitutional matters | Ensures constitutionality of law hears constitutional appeals. |
| Supreme Court of Justice | Civil and criminal cases | Highest court for civil and criminal cases. Hears appeals on points of law reviews decisions from lower courts. |
| Judicial Courts | Civil and criminal cases | Local Courts handle cases at the first instance District Courts handle appeals Supreme Court of Justice |
Court structure
| Court | Jurisdiction | Key Responsibilities |
| Supreme Administrative Court | Administrative and tax matters | Reviews decisions related to administrative and tax law |
| Court of Auditors | Auditing public accounts | Ensures proper use of public funds audits public accounts |
| Arbitration Courts | Alternative dispute resolution through arbitration | Resolves disputes through arbitration rather than traditional court proceedings |
Litigation procedures
| Introductory stage | Initial statement of claim to the court, usually through the e-justice platform (Citius) Service of Process Response to Pleadings -defendant to respond to a complaint in civil cases is determined by procedural rules, and it is typically 30 days case management conferences or pre-trial hearings conducted by court |
| Evidence stage | first trial day of legal proceedings is typically set by the court Preliminary Hearings - In certain criminal cases Presentation of Evidence |
| Ruling stage | Final decision by court |
| Appeal stage | Appeals to provincial courts of appeal or supreme courts |
Important and amazing idea!
Whether the legal system is influenced by a particular culture?
Legal systems are not enus has a bonly influenced by specific cultural perceptions, but also in turn influence and shape cultural perceptions and behavioral patterns.
For instance，People from different countries agree to sign a contract at the same time.
Law & Culture
The values, moral standards and social Xi of different cultural backgrounds in each country are reflected in their respective legal norms
Managerial and Supervisory Challenges
Portugal
Idealista, in 2023, Portugal will introduce a new tobacco law, introducing several important changes.
E-cigarettes and heated tobacco are treated the same as traditional cigarettes, while the sale of flavored tobacco is banned.
Non-smoking areas have also been expanded
Does the constitution of a particular country affect commercial law?
Portugal： National Interest VS EU Interest
Domestic legislation or other restrictions on freedoms
Free flow of goods , free movement of people , free provision of services ,free flow of capital
Member states are given as much freedom of choice as possible, measures that can be justified as long as they are in the interests of the EU are permitted except for express prohibitions
Key Legislation Impacting International Companies in Portugal
1. Corporate Law: Recent changes impacting how companies are governed and categorized.
2. Employment Contract Law: Adjustments in line with EU directives that influence employment agreements and worker protections.
WEST EUROPE
Faro
Key Legislation Impacting International Companies in Portugal
3. Taxation: Ensuring adherence to public country-by-country reporting for financial transparency.
4. ESG Factors: Shaping corporate strategies and operations.
5. Trade and Exchange Regulations: EU directives that have an impact on telecommunications, digital services, and competition regulations.
All About Portugal
Key Rules Surrounding Contracts in Portugal
1. Contract Creation: This involves the elements of making an offer, receiving acceptance, ensuring all parties have the legal capacity to enter into the contract, having a lawful purpose for the contract, obtaining mutual consent, and adhering to any relevant sector-specific regulations and EU directives.
2. Contract Legitimacy: This refers to the contract's compliance with both national and EU laws, as well as any industry-specific regulations.
Key Rules Surrounding Contracts in Portugal
3. Remedies for Breach: Specific performance, compensation, termination, influenced by national and EU legal frameworks.
4. Special Considerations: ESG factors, foreign trade, and labor laws in contract terms and enforcement.
Intellectual property protection
Portugal Intellectual Property Legal System
Constitution of the Portuguese Republic
All About Portugal
Learn more about!
Intellectual property protection
International organizations/agreements
Locarno Agreement Establishing an International Classification of Industrial Designs
Nairobi Treaty for the Protection of the Olympic Emblem
Patent Law Treaty
Singapore Trademark Law Treaty
Trademark Law Treaty
Vienna Agreement Establishing an International Classification of the Figurative Elements of Marks
WIPO Copyright Treaty
WIPO Performances and Phonograms Treaty
Rome Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations
Budapest Treaty on the International Recognition of the Deposit of Microorganisms for Patent Proceedings
Protocol Concerning the Madrid Agreement Concerning the International Registration of Marks
Brussels Convention on the transmission of program signals transmitted by satellite
Patent Cooperation Treaty (PCT)
Strasbourg Agreement on International Patent Classification
Convention Establishing the World Intellectual Property Organization
Lisbon Agreement for the Protection of Appellations of Origin and their International Registration
Nice Agreement on the International Classification of Goods and Services for the Purpose of Registration of Trademarks
Berne Convention for the Protection of Literary and Artistic Works
Madrid Agreement on the International Registration of Marks
Madrid Agreement against False or Deceptive Marking of the Origin of Goods
Paris Convention for the Protection of Industrial Property
All About Portugal
Intellectual property protection
The Labour Code of Portugal obligates employees to be loyal to their employers.
Article 195 of the Criminal Code imposes a prison sentence of up to one year or a fine of up to 240 days for those who reveal a secret that they become aware of through their condition, employment, office, profession, or art.
Article 196 of the Criminal Code imposes up to a year imprisonment or a fine of up to 240 days for those who take advantage of a secret relating to the professional, industrial, commercial, or artistic activity of another person or business without consent and, by doing so, damages them.
The Industrial Property Code (IP Code) of Portugal includes the protection of undisclosed know-how and confidential business information from unlawful acquisition, use, and disclosure.
All About Portugal
Intellectual property protection
3 types of intellectual property rights exist to protect:
Inventions (e.g. patents, supplementary a. protection certificates, rights in trade secrets, confidential information and/or know-how)
Brands (e.g. trade marks, cause of action b. in passing off, rights to prevent unfair competition, association marks, certification marks, hallmarks, designations of origin, geographical indications, traditional speciality guaranteed);
Other creations, technology and c. proprietary interests (e.g. copyright, design rights, semiconductor topography rights, plant varieties, database rights, rights in trade secrets, confidential information and/or know-how).
All About Portugal
Employment law
Employment relationships in Portugal are governed by several sources
International sources:
(i) international conventions ratified by Portugal (not by Portuguese legislation);
(ii) EU legislation;
Local law, notably the Labour Code (approved by Law no. 7/2009, from 12 February);
Collective bargaining agreements (“CBAs”); and
Repeated labour practices not contrary to good faith.
All About Portugal
Employment law
A maximum normal working period is typically 40 hours per week.
A minimum rest period of 11 consecutive hours in every 24 hours, popularly called the rest period.
A minimum of 22 vacation days each year, part of the employee benefits.
Additional compensation for overtime work.
All About Portugal
Employment law
Employment Contracts
Term employment contracts;
Employment contracts with foreign employees (depending on the country);
Multiple employer employment contracts;
Part-time employment contracts; and
Management employment contracts.
All About Portugal
The key risks
Contract Risks
Employment Risks
Wow!
Tax Compliance
Employment Risks
Working hours 40 hours per week
11 hours rest in 24 hours
1 full day rest per week
2 days vacation per month
22 days a year a year(First year 20 days)
Maximum over time work hour 2 hours per day
(First hour 150% wage, Second hour 175% wage)
10PM to 7AM is Night shift time. (125% wage)
Annual leave allowance and Christmas leave allowance （1 monthly wage）
Contract Risks
significant freedom to negotiate terms
(must adhere to mandatory legal provisions.)
Consumer protection terms need to be included
Determine the jurisdiction is also important.
Arbitration Agreements
Alternative Dispute Resolution (ADR)
Tax Compliance
Tax laws are complex and frequently updated
Arm's Length Principle
Portuguese and international tax law
Double Taxation Agreements
Risk of Audits
Penalties for Non-Compliance
Don’t forget the Tax.
Thank you!
