As your trusted PEO and Employer of Record partner in Brazil, WIDE Brazil is dedicated to providing you with comprehensive insights into Brazilian employment law to facilitate smooth operations and ensure legal compliance.
Understanding and adhering to these guidelines is crucial for maintaining a productive and harmonious work environment in Brazil.
In Brazil, all the laws and regulations regarding labor and employment are aggregated into the Consolidation of Labor Laws (Consolidação das Leis do Trabalho, CLT).
The CLT was last updated in 2017 through Law N. 13467 in 2017. Following this amendment, employers benefit from more flexible obligations. Some of the most important modifications regard employee workload, potential lawsuits, rest, meal, and vacation time.
Payroll cycles occur monthly, typically with payments made on the last working day of the month.
Standard working hours in Brazil are 44 hours per week, distributed as 8 hours per day from Monday to Friday.
Work beyond 44 hours weekly qualifies for overtime. Up to 2 hours daily is overtime, paid at 150.00% standard salary. Holidays incur up to 200.00% of regular pay.
The employee probation period is 90 days, enabling assessment of compatibility and suitability before a long-term commitment.
Paid time off, inclusive of public holidays, is augmented by additional leave entitlements for employees in Brazil. After 12 months of service with the same employer, the employee becomes eligible for vacation, to be granted within 11 months following the vesting period.
The recent labor reform introduced the possibility of taking vacations in up to three segments, with one period spanning at least fourteen consecutive days and others spanning at least five consecutive days each.
Cash allowance involves the conversion of 1/3 of the accrued vacation days into cash, with the employee having the option to request it within 15 days before the vesting period’s end. Paid leave or vacation is calculated based on the monthly salary plus an additional one-third bonus of the monthly salary, paid two business days before the leave’s start date.
Payroll and benefits
The right of workers to have life insurance is guaranteed, with the following minimum coverage:
Paid time off:
The employee may fail to attend the service from the subsequent date, without prejudice to the salary, until:
Medical and dental certificates will be recognized by companies to justify absences and delays.
As a general rule, absences from work must be communicated in writing by the employee (or his representative) to the company, within 48 (forty-eight hours) of the event motivating the leave.
The thirteenth salary, also known as Christmas bonus, was instituted in Brazil in 1962 by Law 4090. The rule guarantees that the worker receives the equivalent of one twelfth of the remuneration per month of service, that is, an extra salary at the end of each year. Payments will be paid in two installments:
The employee may also request an advance of 50% of his 13th Salary, to be paid together with the vacation. In this case, the second installment is paid in December, with due discounts.
1. Dismissal without just cause: the end of the contract is at the sole will of the employer. In these circumstances, the employee is entitled to a prior notice period*, overdue vacation, plus 1/3, proportional vacation, proportional thirteenth salary, salary balance, in addition to a 40% fine on the FGTS (mandatory severance pay), which is the penalty for unmotivated dismissal.
*The notice may be indemnified – (30 days of salary to be paid) or worked (period of 30 days, in which the employee must continue working at the company until, in fact, he is terminated). If the termination is with mutual consent, the required notice period may be waived.
2. Dismissal for just cause: Occurs when the employee commits serious faults, in cases of dishonesty or misconduct, among others. In this case, the employee only receives the salary balance and the vacation periods due.
Resignation request: It is the worker’s declaration of will, independent, therefore, of the employer. The worker loses the right to prior notice (unless worked) and to compensation of 40% on FGTS deposits.
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