Employment contracts Brazil

What should an employment contract in Brazil include?

An employment contract in Brazil typically includes the following information:

• The contact information and names of employer and employee. 
• The employee’s job title and description. 
• The designated working hours and days of the employee. 
• The salary amount or wages and any extra benefits.
• Notice period that’s required from both parties. 
• Expectations regarding non-disclosure or confidentiality. 

It’s important that both the employer and employee read and understand the terms of the contract before providing their signatures. 

What types of employment contracts exist in Brazil?

Brazil’s employment contracts can be split into a few categories:

1. Employee contracts

In Brazil’s labor market, there are two distinct types of employee contracts.

• Indefinite-term Contract (Contrato por Prazo Indeterminado): This is the most common type of employment contract in Brazil. It has no fixed end date and continues until either the employer or the employee terminates it by following the legally required notice period. This contract is subject to a notice period which depends on the duration of service and other circumstances. 
• Fixed-term Contract (Contrato por Prazo Determinado): This type of contract is used for temporary or seasonal work. It has a specific duration agreed upon by the employer and the employee. There’s no need for a notice period with fixed-term contracts. Fixed-term contracts can be renewed for two years. After that, the contract should be converted into an indefinite-term contract.

2. Intermittent Contract

An intermittent contract, known as “Contrato Intermitente” in Brazil, is a new employment contract which enables employers to hire employees where there’s an increased need for services. Employees under the intermittent contract are paid only for the actual hours they work. The intermittent contract cannot last longer than 24 months.

3. Autonomous Services Contract

In Brazil, the “Autonomous Services Contract” (Contrato de Prestação de Serviços Autônomos) is an agreement used to engage independent contractors or self-employed individuals to provide specific services. Under this type of contract, the individual providing the services isn’t an employee of the other party but is considered an independent service provider. 

How to hire employees in Brazil? 

In Brazil, you’ll need to establish a legal entity in the country in the event of hiring new employees. The whole process takes a lot of time and effort, and it also requires following the employment laws in Brazil. 

One way to streamline the global hiring process is to utilize the services of EOR platforms like Native Teams. We take care of administrative tasks while ensuring full compliance with the legal regulations regarding employment contracts, hiring, and payroll processing.