Brazil – National Regulations in Employment Law

We, the International Labour and Employment Group of Rödl & Partner, are happy to advise you on labour law issues (individual and collective) as well as social security law issues on a global, regional and local level.

Below you will find basic information on national labour law provisions in Brazil.

Interview with PatrÍcia berbetz

Are there national and/or local collective agreements in the country that regulate labour relations?

Yes. Labor Unions have a strong presence in Brazil.

Are there different legal rules by department/canton?

Yes. Labor Unions are based on the region and also activity performed by the employees.

Is there and what is the staff threshold above which the presence of staff representatives is mandatory?

The union's engagement starts with one employee, but there are differentiated conditions for companies with 20 or more employees, in which the constitution of an Internal Commission for the Prevention of Accidents (CIPA) can be mandatory.

Are trade unions present in the company?

Yes. The rights provided in the labor union agreements should be followed by the Companies. Even though there is no physical presence of the union, the employees can request to be part of the Union which represents their position.

If applicable what is the applicable legal working time?

Regular working time is 8 hours daily and 44 hours weekly. There are special treatments to adjust the daily hour to avoid work on Saturdays or special journeys based on the necessity of the Company, especially in industries where the company works 24 hours per day.

Is there a minimum wage set by law/collective agreements (yes/no)?

Yes. By Federal law and by Collective agreement with Labor Union.

What is the number of legal annual paid holidays?

Employees are entitled to 30 days of vacation, which can be rested in up to three periods, one of them at least 14 days and the other two, at least five days.

Existence of specific classification of employees according to their functions/responsibilities?

Yes. There is a classification of the Labor Ministry called CBO that identifies all occupations existing in Brazil in the most diverse sectors of activities, public and private, establishing specific codes for each profession.

Obligation to set up complementary social insurance schemes (mutual insurance/provident fund/pension)?

Not as such. But the penalty of the FGTS (guarantee fund of time of service) is due to all employees who are dismissed without cause. Every regular Brazilian worker with a contract governed by the Labor Laws (CLT), has this right. Every month, company pays a percentage over the salary as FGTS, once the employee is dismissed he/she is entitled to an additional amount of 40 percent as a penalty.