The performance of work in the worker's own home may, at least in theory, be compatible with the situation of work under a contract of employment as an employee. In Portugal, there are no legal provisions specifically contemplating contracts of employment which are performed in the worker's home: the general system of regulation of the contract of employment applies, with the exceptions imposed by the particular nature of the place where the work is done. However, in cases where the work done in the worker's own home is performed on a self-employed basis but a situation of economic dependence can be shown to exist, the contract is treated as a contract equated with a contract of employment . Special legislation, based on the general principles governing regulation of the individual contract of employment, has been passed to cover such situations (Decree-Law No. 440 of November 14, 1991), to ensure that homeworkers should receive fair pay (although the statistics available demonstrate clearly that these new provisions have not been applied in practice). Another notable aspect is that the general system of social security and protection against accidents at work and occupational illnesses is made applicable to this form of self-employment. Lastly, this special legislation regulates the termination of the contract, imposing an obligation to give advance notice in order to prevent the employment from being terminated abruptly and unexpectedly.

Please note: the European industrial relations glossaries were compiled between 1991 and 2003 and are not updated. For current material see the European industrial relations dictionary.