TERMINATION LAWS
Just like in America, a Brazilian employer or employee has the right to terminate employment at any time for any reason. The exception to this law in the country of Brazil is that no employer can terminate an employee with tenure or any woman due to pregnancy. Terminations of employees employed for more than one year must have paperwork filed with the labor office. Upon termination without cause, employees are entitled to severance pay and up to 50% of their Fundo de Garantia do Tempo e Servico (FGTS) fund.
This special fund is designated for workers and creates resources for the government as well as an assistance fund for workers exposure to some specific situations. The importance of this fund is not only used for government purposes, but also to finance property acquisitions benefiting Brazilian citizens, especially those with the lowest income. The account balance of FGTS is in the form of monthly deposits made by the employer equivalent to 8% of the employee's salary. These deposits are mandatory and must enter into each worker's account by the 7th day of the month.
As a general rule, employers and employees leaving a job are encouraged to give 30 days notice and 3 additional days for every year spent working for the company. If employers do not wish to grant this amount of time, they have the option of paying the employee for that amount of time instead of granting notice. In Brazil, this is a commonly accepted practice, but is not required by law.
Sources:
Villa da Costa, M. (2010). International employment law “quick facts”: Brazil. International HR Forum. Retrieved from
http://internationalhrforum.com/2010/01/07/employment-law-quick-facts-brazil/
The international employment lawyer. (2013). Labor & Employment Law in the BRIC Jurisdictions – Brazil. Retrieved from
http://www.internationalemploymentlawyer.com/tag/expatriate-assignment/
Practical Law. (2105). Employment and employee benefits in Brazil: Overview. Termination of employees. Retrieved from
http://us.practicallaw.com/1-503-5032#a830684
Just like in America, a Brazilian employer or employee has the right to terminate employment at any time for any reason. The exception to this law in the country of Brazil is that no employer can terminate an employee with tenure or any woman due to pregnancy. Terminations of employees employed for more than one year must have paperwork filed with the labor office. Upon termination without cause, employees are entitled to severance pay and up to 50% of their Fundo de Garantia do Tempo e Servico (FGTS) fund.
This special fund is designated for workers and creates resources for the government as well as an assistance fund for workers exposure to some specific situations. The importance of this fund is not only used for government purposes, but also to finance property acquisitions benefiting Brazilian citizens, especially those with the lowest income. The account balance of FGTS is in the form of monthly deposits made by the employer equivalent to 8% of the employee's salary. These deposits are mandatory and must enter into each worker's account by the 7th day of the month.
As a general rule, employers and employees leaving a job are encouraged to give 30 days notice and 3 additional days for every year spent working for the company. If employers do not wish to grant this amount of time, they have the option of paying the employee for that amount of time instead of granting notice. In Brazil, this is a commonly accepted practice, but is not required by law.
Sources:
Villa da Costa, M. (2010). International employment law “quick facts”: Brazil. International HR Forum. Retrieved from
http://internationalhrforum.com/2010/01/07/employment-law-quick-facts-brazil/
The international employment lawyer. (2013). Labor & Employment Law in the BRIC Jurisdictions – Brazil. Retrieved from
http://www.internationalemploymentlawyer.com/tag/expatriate-assignment/
Practical Law. (2105). Employment and employee benefits in Brazil: Overview. Termination of employees. Retrieved from
http://us.practicallaw.com/1-503-5032#a830684