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5 Things To Know About Brazilian Employment Law

5 Things To Know About Brazilian Employment Law

As we pause for breath between Team GB’s gold rush at the Olympics and the forthcoming Paralympics, to keep the carnival spirit going, we’ve been looking at employment law in Brazil (never say lawyers don’t know how to party!).

Here are 5 things to be aware of:

  • Disability Quotas - Linking to the Paralympics, employers with 100 or more employees are required to employ a minimum quota of employees with disabilities.
  • At Will Employment - Unlike the UK unfair dismissal regime, although there is some protection for employees in specific circumstances (e.g. pregnancy) an employer can generally terminate a contract at any time without any particular reason, providing notice is given.
  • Guaranteed Bonus - Every year, employers must pay employees a “13th month” of salary.
  • Local Employee Quotas - Companies that employ foreign nationals must ensure that at least two-thirds of staff are Brazilian.
  • No Redundancy – Redundancy does not exist as a concept. If a business dismisses an employer due to reduction in work, a restructure or financial/economic difficulties, this is simply a “dismissal without cause”. However, the practical result is similar in that the employee is entitled to a notice period and severance package.