Employees at the Hotel Montechoro in Albufeira have been paid the outstanding salaries from October and November, averting a planned strike by staff.
A general meeting took place at the hotel before Christmas involving the employees, the administration and the Algarve hotel staff union.
The company has since received payment from the sale of a commercial property in Lisbon and as a result settled the outstanding salaries in full.
Nelson Pascoal, acting manager of the Hotel Montechoro, told the Algarve Resident that the hotel would function as normal during the New Year festivities.