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Hiring in Brazil can be difficult and time-consuming if you aren’t familiar with the local labour regulations and norms. That’s why understanding the fundamentals of employment in Brazil is crucial. Firstly, employers must adhere to strict contracts, salaries, benefits, and tax regulations.
In addition, Brazil also has a complex tax structure, which employers must navigate in order to pay payroll taxes and social security obligations. Second, learning local customs and cultural norms is crucial to finding qualified candidates.
Finally, while recruiting in Brazil, thinking about the associated perks and social security duties is essential. Benefits, like paid sick days, vacation days, and other paid leave, are mandated by law for all employees.
When it comes to hiring remote workers, Brazil has a lot to offer. Brazil is home to a sizable population of highly trained experts, especially in the areas of information technology, computer science, and marketing.
In addition, Brazilian people are known for their creativity, adaptability, and strong work ethic. Furthermore, Brazil’s low labour cost makes it a desirable destination for international corporations needing remote workers.
As a result of the country’s cultural richness and thriving entrepreneurial spirit, it is able to attract and retain a remote workforce that is both creative and ambitious. Another benefit is the country's strong infrastructure and internet connectivity, which support efficient teamwork and communication.
Native Teams’ Employer of Record services help you hire and pay your team through an owned infrastructure in Brazil. We handle everything from legal employment to ensuring your team is paid and managed compliantly and with care, without any third parties involved.
Hire your first Brazilian employee with Native Teams.
Employers must follow a few essential laws and regulations to ensure a fully compliant employment process in Brazil.
Brazil’s employment law operates within a federative legal hierarchy, with federal law prevailing over state and local laws.
Employment relationships are primarily governed by the Consolidation of Labour Laws (CLT), enacted in 1943. The CLT contains more than 900 articles covering different aspects of the employer-employee relationship and is supplemented by regulations, decrees, and ordinances addressing specific employment matters.
The Federal Constitution of 1988 further reinforces employee protections by establishing several labour rights at the constitutional level. Brazilian labour laws are considered matters of public interest, meaning their protections are generally mandatory and cannot be waived. Violations of labour rights may also result in penalties under the Brazilian Penal Code, including imprisonment in cases involving fraudulent or violent infringement.
Collective bargaining also plays an important role in Brazilian employment relations. Employer and employee unions negotiate annual collective bargaining agreements, which may provide rights beyond the minimum standards established by federal law. These agreements are binding on all employees within the relevant economic category, regardless of individual union membership.
Brazilian labour law recognises several types of employment contracts, depending on the nature and duration of the work.
Indefinite-term employment contract (contrato por tempo indeterminado)
This is the most common type of employment contract in Brazil. Only the start date is established, with no predetermined termination date. Employees are entitled to:
Fixed-term employment contract (contrato por tempo determinado)
A fixed-term contract has a predetermined end date and cannot exceed two years. Under the CLT, it may be used when:
Employees under a fixed-term contract do not receive notice of termination, FGTS compensation, or unemployment insurance.
Temporary employment contract (contrato de trabalho temporário)
Governed by Decree No. 73.841 of 13 March 1974, this contract is used to address temporary needs, such as replacing staff or managing a temporary increase in services. It typically lasts between three and nine months.
Occasional employment contract (contrato de trabalho eventuale)
This arrangement is used for temporary and exceptional work. Unlike a temporary employment contract, it does not establish an employment relationship. The individual performs work sporadically and is not considered an employee of the contracting party.
Employment contracts in Brazil are governed by the Consolidation of Labour Laws (Consolidação das Leis do Trabalho, or CLT), which establishes the fundamental aspects of the employer-employee relationship.
Mandatory elements of an employment contract include:
Employment contracts may also include optional provisions, such as compliance and anti-corruption requirements, intellectual property rights, confidentiality, non-solicitation and non-compete restrictions, protection of privileged information, and data privacy requirements.
In Brazil, an employment relationship is presumed when an individual personally and regularly performs work for another entity, receives payment, and follows the employer’s direct instructions. Employment conditions may be agreed tacitly but must be registered on the employee’s labour card.
Employment agreements must comply with the CLT and applicable labour, social security, and tax requirements.
Download a free employment contract for Brazil through Native Teams.
Brazilian labour law recognises oral, written, and electronic employment contracts, provided they meet the applicable legal requirements under the Consolidation of Labour Laws (CLT).
Oral contracts are legally binding and are commonly used for short-term or informal employment arrangements. However, they may make it more difficult to prove the exact terms of employment in the event of a dispute.
Written contracts are the most common and recommended form, as they provide clear documentation of the terms agreed between the employer and employee. They typically cover the job description, working hours, salary, benefits, and other relevant employment conditions.
Electronic contracts are also recognised under Brazilian law, provided they meet the applicable digital signature and authentication requirements.
Regardless of the form used, all employment contracts must comply with the minimum rights and protections established by the CLT and other applicable labour legislation, including requirements relating to minimum wage, working hours, overtime pay, annual leave, and severance entitlements.
In Brazil, standard working hours are limited to eight hours per day and 44 hours per week. Employees who work more than six hours per day are entitled to a one-hour break for rest and meals, as well as a paid weekly rest period, preferably on Sundays.
Certain professions, including bank employees and telemarketing operators, may have different limits, typically six hours per day.
Employees may work up to two hours of overtime per day, which must be paid at a rate of at least 50% above the regular hourly wage. Overtime beyond this limit may be permitted in emergencies if a special agreement is registered with the Ministry of Labour and Social Security.
Employees working night shifts between 10 PM and 5 AM are entitled to an additional 20% premium on their hourly wage.
Certain employees are exempt from standard working-hour limits and overtime payments, including:
In Brazil, night work is defined as work performed between 10 PM and 5 AM under the Consolidation of Labour Laws (CLT).
Employees working during these hours are entitled to a minimum 20% premium over the standard daytime wage. For working-time calculations, every 52 minutes and 30 seconds of night work is treated as 60 minutes of daytime work.
Night workers are entitled to the same basic employment rights as daytime workers, including overtime pay, rest periods, and annual leave. Specific requirements may also apply to night work, including mandatory health assessments and additional protective measures.
Brazilian labour law provides employees with daily and weekly rest periods, as well as several types of leave for personal, family, and health-related circumstances.
Rest periods
Employees are entitled to at least 11 consecutive hours of rest between working days and 24 consecutive hours of weekly rest, preferably on Sunday. Prior permission from labour authorities is required for Sunday work unless the nature of the work requires it. National and religious holidays are also designated as rest days, subject to applicable exceptions.
Types of leave
Employees in Brazil are entitled to paid annual leave after completing a 12-month acquisition period.
Under the CLT, annual leave entitlement depends on the number of absences during that period:
For part-time employees, annual leave is adjusted according to weekly working hours:
Certain absences do not reduce annual leave entitlement, including maternity leave, work-related accidents, and justified absences approved by the employer. Mandatory military service is also included in the acquisition period when calculating annual leave.
Employers must grant annual leave within 12 months following the acquisition period. Employees under 18 or over 50 must take their leave in one continuous period. If leave is not granted within the required timeframe, the employer must pay double the applicable remuneration.
Under Brazilian law, remuneration includes the total compensation received by an employee, including fixed salary, commissions, bonuses, gratuities, and incentives such as profit-sharing, meal vouchers, and transportation allowances. Employers must deduct applicable social security contributions (INSS) from salaries, which fund benefits including pensions, sick leave, and maternity benefits.
Standard working hours are limited to 8 hours per day and 44 hours per week. Additional hours are considered overtime and must be paid at least 50% above the regular hourly rate. Work on Sundays and public holidays must be paid at double the regular rate.
Employers and employees may use a time bank (banco de horas) instead of overtime payments, allowing additional hours worked to be exchanged for future paid time off. Overtime is generally limited to 2 additional hours per day, except in emergencies or where a collective bargaining agreement provides greater flexibility.
Employees working night shifts between 10 PM and 5 AM are entitled to an additional 20% night work premium, applied on top of any applicable overtime increase.
To calculate the salary and taxes in Brazil, click here.
Employees in Brazil are entitled to paid sick leave when they are unable to work due to illness or injury. A medical certificate issued by a registered doctor must be provided within 48 hours of the onset of the illness and confirm that the employee is unable to work. The duration of leave is determined by the doctor based on the employee’s condition.
Sick leave payments are divided between the employer and the National Institute for Social Security (INSS):
Employees receiving sick leave benefits from the INSS are protected from termination for up to one year after returning to work. According to the provided source, this protection applies following both work-related and non-work-related illnesses or injuries.
In Brazil, fathers are entitled to 5 consecutive days of paternity leave following the birth or adoption of a child. Paternity leave is governed primarily by the Federal Constitution and the Consolidation of Labour Laws (CLT).
During paternity leave, employees receive their full salary, paid by the employer.
The entitlement applies to fathers with a signed work card in the private sector, as well as those employed in the public sector. Fathers making other types of contributions, including facultative and special insured contributors and individual micro-entrepreneurs, as well as unemployed fathers, are not entitled to paternity leave.
In cases of adoption, the same paternity leave entitlement applies regardless of the child’s age.
In Brazil, maternity leave is governed primarily by the Consolidation of Labour Laws (CLT) and administered by the National Institute of Social Security (INSS).
Employees in the private sector are entitled to 120 calendar days of maternity leave. This may be extended to six months when the employer voluntarily participates in the Company-Citizen Programme (Programa Empresa Cidadã). Maternity leave may begin from the eighth month of pregnancy.
In the federal public sector, maternity leave is six months. At state and municipal levels, extensions beyond 120 days depend on approval by the relevant authorities.
Maternity leave also applies in cases of adoption or legal custody for adoption purposes, under the same terms as for biological mothers. Single adoptive fathers and one partner in same-sex couples may also be eligible for these benefits.
During maternity leave, beneficiaries receive 100% of their earnings, with no upper limit. For employees with variable pay, such as commissions or overtime, the benefit is calculated based on their average earnings over the previous six months.
Employment termination in Brazil is primarily governed by the Consolidation of Labour Laws (CLT), which recognises several methods of ending an employment relationship:
Each method has different implications for severance pay, notice periods, and employee entitlements. In cases of termination without cause, employees are generally entitled to the release of their FGTS (Fundo de Garantia do Tempo de Serviço) funds with an additional 40% fine, as well as proportional annual leave pay and a pro-rata 13th salary.
The standard notice period is typically 30 days, although it may increase depending on the employee’s length of service. During the notice period, employees may reduce their working day by two hours or take seven consecutive days off without a reduction in salary.
Certain employees, including pregnant women, union leaders, and employees on sick leave, have special protection against dismissal under Brazilian law.
In Brazil, ordinary dismissal, known as dispensa sem justa causa (dismissal without just cause), allows an employer to terminate an employment contract without attributing fault to the employee. Employers must still comply with applicable legal and financial obligations under the Consolidation of Labour Laws (CLT). Key requirements include:
Certain employees, including pregnant women and union officials, have special protection against dismissal under Brazilian law.
In Brazil, mutual termination, known as distrato or rescisão por acordo mútuo, allows an employer and employee to mutually agree to end the employment relationship. It is governed by Article 484-A of the Consolidation of Labour Laws (CLT), introduced by the 2017 Labour Reform. Under mutual termination:
Mutual termination requires the explicit agreement of both the employer and employee and cannot be imposed unilaterally by either party.
In Brazil, the notice period, known as aviso prévio, is a mandatory period of advance notice before an employment contract is terminated without just cause. The standard notice period is 30 days, but it may be extended depending on the employee’s length of service.
Under the Consolidation of Labour Laws (CLT), either party may terminate the employment relationship without just cause by providing advance notice. When the employer initiates the termination, the employee may either work during the notice period or receive payment in lieu of notice.
Employees may challenge a dismissal they believe to be unjust or unlawful, including in cases involving:
To challenge a dismissal, the employee typically files a claim with the Labour Court (Justiça do Trabalho). The burden of proof generally lies with the employee to demonstrate that the dismissal was unjust or unlawful.
Brazil provides several forms of support for unemployed individuals, primarily under the Federal Constitution of 1988 and specific laws and regulations.
The main form of support is unemployment insurance (Seguro-Desemprego), regulated by Law No. 7,998/1990. Eligible workers may receive three to five monthly payments, depending on factors such as their previous employment period and the number of times they have claimed the benefit.
Eligibility requirements include having worked under a formal employment contract for at least 12 months within the 18 months before dismissal and having no other sufficient source of income. The benefit is calculated based on the average salary from the previous three months, with a minimum equivalent to the national minimum wage.
Other forms of support include:
Unemployed individuals also have certain obligations, including actively seeking employment, participating in professional qualification programmes when offered, and not performing undeclared work while receiving benefits. Failure to meet these requirements may result in the suspension or cancellation of unemployment benefits.
In Brazil, severance pay is primarily governed by the Severance Indemnity Fund (Fundo de Garantia do Tempo de Serviço - FGTS). Employers make mandatory monthly contributions equivalent to 8% of the employee’s salary to the employee’s FGTS account.
When an employee is dismissed without just cause, they are entitled to access their FGTS balance and receive an additional 40% fine on the total amount deposited into the FGTS account during employment, paid by the employer.
Severance may also include:
Employees dismissed for just cause are generally not entitled to severance beyond their accrued rights, such as proportional 13th salary and annual leave pay. They retain access to their FGTS balance but without the additional 40% fine.
The termination procedure and severance payment must generally be completed within 10 days of the termination of the employment contract.
Intellectual property (IP) rights in Brazil are primarily governed by the Industrial Property Law (Law No. 9,279/1996) for patents and trademarks and the Copyright Law (Law No. 9,610/1998) for copyrights, alongside provisions of the Brazilian Civil Code and the Consolidation of Labour Laws (CLT).
In general, inventions and other IP created within the scope of employment or using company resources belong to the employer, although specific rules and exceptions depend on the type of IP and the circumstances in which it was created.
For patentable inventions, Brazilian law distinguishes between:
The classification depends on factors including the employee’s job responsibilities, use of company resources, and connection between the invention and the employer’s business.
For copyrights, initial ownership generally belongs to the creator, including in an employment relationship. However, an employment contract or separate agreement may transfer ownership or grant the employer licensing rights.
Employee data protection in Brazil is primarily governed by the General Data Protection Law (Lei Geral de Proteção de Dados Pessoais – LGPD), which came into full effect in August 2020. It applies to organisations processing the personal data of individuals in Brazil, regardless of where the organisation is based.
Under the LGPD, certain employee data is subject to stricter protection, including health data, biometric information, union membership, and other sensitive personal information. Employers must have a legal basis for processing personal data and implement appropriate security measures to protect it.
Employees have several rights regarding their personal data, including the right to access their data, correct inaccurate information, and request deletion in certain circumstances. Employers must also be transparent about how personal data is processed and obtain explicit consent for certain types of processing.
The LGPD establishes key principles for processing personal data, including:
Non-compliance may result in fines of up to 2% of the company’s revenue in Brazil, capped at BRL 50 million per infraction.
Remote work, or teletrabalho, in Brazil is primarily governed by the Consolidation of Labour Laws (CLT), as amended by Law No. 13,467/2017. It covers services performed outside the employer’s premises using information and communication technologies. Key requirements include:
In Brazil, employers and employees have specific responsibilities when working under a remote work (teletrabalho) arrangement, primarily governed by the Consolidation of Labour Laws (CLT).
Employer responsibilities include:
Employee responsibilities include:
Remote workers in Brazil are protected by occupational health and safety requirements under the Consolidation of Labour Laws (CLT).
Under Article 75-E of the CLT, employers must provide remote employees with clear instructions on precautions to prevent work-related illnesses and accidents. Employees are required to sign a written agreement confirming their commitment to follow these instructions.
Depending on the nature of the work, health and safety guidance may cover areas such as ergonomics, home workspace setup, and practices designed to prevent occupational illnesses. Although employers cannot directly control the employee’s home environment, they remain responsible for ensuring employees are properly informed and equipped to maintain a safe workspace.
Remote employees are covered by the same legislation on work-related accidents and illnesses as office-based employees. Health issues arising from work performed at home are therefore treated similarly to those occurring in a traditional workplace, including in relation to workers’ compensation and employer liability.
Hiring employees from Brazil offers several advantages compared to sourcing talent from other countries. First, Brazil has a large and diverse talent pool, particularly in fields such as technology, engineering, and creative industries. The country’s emphasis on education and a growing number of skilled professionals make it an attractive option for companies seeking expertise.
Second, Brazil’s time zone aligns well with North America and Europe, facilitating real-time collaboration and communication for companies that operate globally. This can enhance productivity and streamline project management, as teams can work together during overlapping hours. Also, labour costs in Brazil can be competitive, particularly when compared to certain countries in North America and Western Europe. While labour laws can be complex, the overall cost of hiring skilled professionals in Brazil may be lower than in developed markets, allowing companies to optimise their budgets.
Additionally, Brazil is known for its vibrant culture and creativity, which can bring innovative ideas and fresh perspectives to a business. Companies hiring Brazilian employees may benefit from cultural diversity, which can enhance creativity and problem-solving within teams.
Lastly, establishing operations in Brazil can provide companies with access to the larger Latin American market, potentially leading to business growth and expansion opportunities. Overall, hiring employees from Brazil can offer a combination of skilled talent, cost efficiency, and cultural richness that can enhance a company’s competitiveness on a global scale.
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