- Overview: Brazil
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global HR Compliance in Brazil
If you hire an international workforce, or plan to hire, then Hiring and Firing Workforce in Brazil Guide below will help you understand the nuances of labor legislation in the country.
When the company is planning to enter a new foreign market of Brazil and has a need to employ a local national there, the first question to answer is how it is going to make local hires.
We have designed a Global Employer of Record service to help you outsource global employment of your foreign workforce to companies like ours.
This solution helps you employ your global sales force in Brazil as well as in other 180+ countries of the world, and provide pay and benefits to your employees, as well as administer any business expenses with our help.
Our solution is different from other hiring modes in that it helps you engage your foreign workforce in full compliance with the local labor legislation. This means you are protected from any non-compliance and employee misclassification risks while we bear all employment risks, not you.
So, it looks very much like hiring your in-house sales force in your home country. However, you focus on only on your global business development while we admin your global HR. In addition, you don’t need to open your own entities in the foreign countries and can leverage our infrastructure in Brazil instead. With our service, you can become a global company with reduced costs and minimized time and effort on your end.
Your employed foreign sales force will devote 100% of their time to your company product and may stay with you longer than foreign independent sales reps.
Global Employer of Record solution is 100% compliant solution that guarantees you and your employees fully compliance with local legislation in Brazil .
We are experts in global workforce employment in Brazil, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.
Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.
With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Brazil.
See Hiring and Firing Workforce in Brazil Guide below for a general overview of labor rules and regulations in the country. Or contact us if you need to employ workers in Brazil or would like to get more details.
Hiring and Firing Workforce in Brazil Guide
It is not a legal obligation to have a contract in writing, verbal contract is acceptable. In spite of this fact, it’s always best to have an employment contract drawn up in writing in the official language – Portuguese. As a rule, a written contract must spell out the basic terms of the employment relationship: duties, compensation and rewards, timeline, probationary period, overtime, as well as the company’s standards and practices. Other terms such as holiday rights, minimum wage, etc. may be implied even if they are not specified in the written contracts. This may not be the case in an oral contract as all these terms may not be recognized or valid. Most contracts are indefinite, others may be fixed-term contract (up to 2 years) and a temporary based contract. Employment contract, once concluded can hardly be modified, especially due to its long protocols that go beyond just getting the consent of the employee; in most cases, it is subject to the collective agreement. Changes to the terms of a contract are considered invalid and ineffective if the outcome is detrimental to the employee, even if it is done by mutual agreement.
Minimum statutory employment rights
# Hours of work
The normative hours of work are set at 8 hours per day and 44 hours per week. Workers who are above 18 years old may work between 10:00 PM and 5:00 AM, but must be compensated by paying them a 20 percent premium of their normal day pay. Employees are entitled to a minimum one hour break (and a maximum of two) for every working shift that exceeds 6 hours, 11 hours’ time off prior to a new shift and weekly rest of 24 hours. – usually on Sundays.
# Probation period
An employer has the right to place a new employee on a probation for up to 90 days’ period and can renew it if needed, but not more than once during the whole employment period.
# Annual leave
Employers are required to give their employees a paid time off during any of the public holidays: New Year’s Day, Tiradentes, Independence Day, Our Lady of Aparecida Day, All Souls Day, Proclamation of the Republic Day and Christmas Day. Employers are obligated to pay their employees double rate for every service they perform on any of these holidays. More so employees are entitled to an annual leave of about 30 days’ length, with the precise number of days hinging on the number of his/her accumulated unexcused absence. An employee is given a 30-day leave if he/she has not more than 5 unexcused absence days, a 24-day leave is given to those who have between 6 and 14 absence days, an 18-day for absence between the number of 15 and 23 and a 12-day for 24 to 32 absence accordingly. Employees who have more than 32 unauthorized absence days within the one year are not eligible to receive any annual leave entitlement. Employers have a statutory obligation to pay their employees one third of their regular wage during the time of their vacation.
# Parental leave
Pregnant employees are eligible for 120 days’ maternity leave and an extra 60 days which must be paid by the employers and later be required by the Social Security system and federal tax benefits respectively. Employees are also entitled to 120 days paid maternity leave if they adopt a child who is under one year, 60 days’ paid leave if the adopted child is between the age of one and four years, and to 30 days paid leave if the child is between four and eight. All adopted parents are entitled to a 60-day extension to their maternity leave.
Males employees are entitled to a 5-day paid paternity leave.
# Sick leave
Employees can take some time off during their sick period. The first 15 days of sickness are usually paid by the employer and subsequently, by the Ministry of Social Welfare.
Not all employees are permitted to work beyond the statutory working hours. Employees who are eligible to work overtime are limited to do 2 hours’ overtime per day; exceptions can be made in the face of emergency, but with the consent of the Ministry of Labor and Employment. Employees have the right to receive compensation for overtime at a rate not less than 50% premium of their normal hourly wage.
# State minimum salary
Salaries are often paid on a monthly basis. The minimum wage in 2017 is R$ 937 per month, and employers cannot pay their employees an amount lower than the federal minimum or the minimum agreed in the collective agreement. An employee’s salary cannot be increased or decrease because the minimum wage increased or decreased. However, employers are required to increase the employee salary by 10 to 40 percent if the employee is working in an unclean environment and by 30 percent if the work is dangerous to the employee.
# Employment termination
Workers in Brazil cannot be dismissed from their jobs on the basis of redundancy. Employees are entitled to severance packages at their contract termination, whether terminated with a cause or without a cause. The severance package for employees whose contracts are cancelled without a cause include, but not limited to outstanding salary, 30 days’ notice of intent prior to the due date of dismissal (payment is allowed in lieu), 40 percent of the sum accrued with the FGTS during the employee’s years of employment plus additional 10 percent of the sum accrued during the employee’s service to the state, payment for unused vacation, bonus (on a pro rata basis) and pro rata 13th month pay. These benefits are also applicable to the employees dismissed because of unsatisfactory work performance. Employees terminated with a just cause have similar entitlement as those dismissed without a cause, except for the pro rata payment for bonus and unused vacation. In case of resignation or constructive discharge, employees will be provided with a severance package akin to the package given to the employee terminated without a just cause, but may not be given the FGTS fund mentioned above (in the case of resignation). An employee who is resigning must give the employer a prior notice before he ends the contract.
Acumen International can help you fast-track your possibilities of entering and expanding your business in Brazil by providing you with an Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without you having to set up a legal entity there.