7 relevant labor rights in Brazil that every entrepreneur should know
Concern about labour rights is (or at least should be) unanimous among Brazilian employers. However, due to the great complexity of our legislation, some of them may often go unnoticed, as there are many doubts and unknown facts when it comes to these rights.
If you are a foreign company operating in Brasil or wish to start it, you need the right partner at your side in order to avoid future problems regarding labour laws.
In order for you to start getting used to our legislation, we listed below 7 relevant labour rights that you must have in mind before starting to hire your workforce.
1. Minimum wage
The minimum wage amount is set by the government each year. To comply with the law, you must be aware of this value. Full-time hiring for a smaller amount is prohibited. Traineeship or other types of contract should be discussed with your attorney.
Please be aware that there is a minimum wage for each category that needs to be observed. You will need to know how to proceed on a case-by-case basis.
2. Thirteenth salary
Every employee hired under CLT is entitled to the thirteenth salary, proportional to the number of months worked during the current fiscal year. The first instalment must always be paid until November 30th and the second until December 20th.
3. Previous notice
Notice is given when there is a dismissal of a worker without just cause. The duration period is 30 days plus three days for each year the employee was in the company. Therefore, an employee who has been hired for five years is entitled to 45 days.
This period may be worked or indemnified. If indemnified, the deadline for the employer to make the settlement is 10 calendar days. If it is worked, this period should be one working day after the termination of the employment contract.
4. Unemployment Insurance
The employee who voluntarily applies for resignation is not entitled to unemployment insurance. If the dismissal was involuntary and without cause, the right should be granted.
The quantity of parcels and the value of each of them is defined by law, according to the salary and the time that the worker remained in the company. Dismissals based on just cause also imply a loss of benefit.
5. Freedom to join the union
Every employee can join the class' union, without this causing him losses or burden with the employer. However, it is optional. The compulsory association is also not considered legal, having the employee the free will to choose to associate or not.
6. Paid weekly rest
The full working day assumes 44 hours per week. Every employee who submits to it is entitled to weekly paid rest, preferably on Sundays. However, that day may vary according to company guidelines, as long as the employee is aware at the time of hiring.
Companies that do not carry out activities on Saturdays can make a kind of compensation: the employee works for nine hours from Monday to Thursday, and eight hours on Fridays. In this way, the four hours of Saturday are compensated.
7. Annual leave with additional
At the end of each year, the employee is entitled to paid leave with an additional one-third of his salary. The employer should be careful that the employee does not have two overdue vacations.
Fulfilling all these labour rights means that the employer does not run the risk of suffering from tax problems. In addition, following such rules contributes to the company being more likely to guarantee a good quality of life for its employees.
If you have any doubts on how to proceed with your hirings and dismissals or would like to run due diligence on your workforce agreements in order to mitigate your liabilities, Rhein International has a specialized team that can help you out. Contact us now!
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