Easily manage employment in Brazil

Brazilian employment law allows either party to give notice to terminate the contract of employment. In the event of termination of a local employee, the employee’s pay must be paid on the last day of employment.

In case the employee resigns without notice, the employee’s pay for the period worked must be settled within seven days of the last day of employment. In case of termination due to misconduct, the employee’s pay must be settled on the last day of employment. If extenuating circumstances prevent immediate payment, the employee must still be paid within three business days

Employees are required to give their employers 30 days’ notice to terminate their employment.

When the employer decides to terminate the employment, the statutory notice period depends on the duration of employment.

• For the first year, the notice period is 30 days.
• For every year after the first year, the notice period increases by three days, up to a total maximum of 90 days.

In Brazil, the severance pay depends on the nature of termination. While severance pay is not required in all cases, severance is typically one month of pay for every year the person has worked for the company.

Employers in Brazil must contribute 8% of each employee’s pay to a government-run severance fund. When an employer terminates an employee, the employer must pay 40% of the balance in the fund as a termination fine. If the employee and employer mutually agree to part ways, the employer must pay 20%.

The maximum probationary period allowed in Brazil is 90 days (two terms of 45 days). If the initial trial period is 45 days, it may be renewed but only for an additional term of 45 days.