Terminating an employee can be an unpleasant but necessary part of running a business. To avoid precarious position when doing a termination in Brazil, you need to be aware of the law. Understanding how notice period works in Brazil will help you to stay compliant.
Find below the answers to the questions you may have about notice period in Brazil.
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Table of Contents
Why does the notice period exist?
So that the employee can have at least 30 days to look for a new job.
In the case of a resignation by the employee, the company also saves time to find another employee.
How long is the Period of notice ?
In Brazil, the notice period is at least 30 days. Also, it can’t be longer than 90 days.
Can employer require the worker not to serve the notice period ?
Yes, this is the employer’s choice.
However, even if the company terminates the employee, they will need to pay in lieu. Pay in lieu of notice is compensation paid to an employee when their employment has been terminated, and the employer has decided to provide pay instead of having the employee work during the notice period.
Can the employee choose between serving the notice or being paid in lieu?
No. That decision is up to the company.
In which cases can the notice be longer than 30 days?
Besides the aforementioned three additional days for each year worked at the company, collective agreements can also extend the notice period.
It is common for the employee to be entitled to an additional 15 days when he has been with the company for more than 5 years or is over 45 years old.
During the notice period, does the employee have to work the same amount of time?
In case of termination without cause, the employee is entitled to a reduction in working hours. He can choose to leave two hours earlier every day or end the notice period seven days before the end of the 30 days without any financial loss.
In case of demission, the employee has to work the same amount of time.
If the dismissed employee finds a job before the end of the notice period, can he leave without suffering any financial loss?
Yes, if during the notice period the employee finds a new job, the company has to release him/her. Regardless of whether the employee has worked 5, 15 or 25 days. In this case, once the hiring is proven, he/she will continue to be entitled to receive the full notice period.
How can Europortage benefits your business ?
We are an Employer of Record (EOR) company in Brazil. With our EOR and Payroll Services, we hire and onboard your candidates while managing compliance. Besides, we manage your payroll in Brazil. Do you have a project in Brazil ? Contact us now!
