As an employer, one of the most important responsibilities you have is to comply with state labor laws and regulations. Every country has different labor laws. Let’s take a look at the labor laws regarding time tracking in Brazil.
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Table of Contents
What is time tracking?
Definition
Let’s start with the basics. Time tracking is the process of recording working hours of employees and ensure employees are paid accordingly. Time entries are used for payroll and give insight into team and employee productivity, scheduling and time distribution and even costs.
How to introduce time tracking to employees ?
Before introducing timekeeping obligation in your company, it is pivotal to think about how everyone will take the news. Most team will be unsure about monitoring its activities and you will have to fight off this stigma.
When some are going to worry about their privacy, some other may point out that it is a form or micromanaging or even punishment. Think well about how to address these concerns.
Once you are prepared, you will have to communicate to your employee about this new management rule. We cannot stress enough that the communication is key to navigate the change. A soft announcement will give you the opportunity to introduce the subject and give crucial information.
Don’t forget to be explicit about the benefits and to be clear about the purpose of the new process.
Time Tracking in Brazil
Is it mandatory in Brazil?
Time tracking is mandatory for companies that have more than 20 employees.
This record must be done by means of manual, electronic or digital timecards, according to Paragraph 2, Art. 74 of the CLT – Consolidation of Labor Laws.
Penalties
If the company does not track time by a mean of a timesheet or timecards, the employee can file a labor lawsuit against the employer.
What about remote work ?
When it comes to remote work or home office, regulations about time tracking are quite unclear. Let’s take a look!
The article 62 of the CLT nullifies the time tracking obligation for remote workers. Thus, by the new wording of item III of article 62 of the CLT, these workers will not be subject to control of working hours and consequently to the payment of overtime.
However, and in the face of lack of jurisprudence on the subject, it is pivotal to take cautious about the application of this rule.
Frequent questions
Is there a time tracking tolerance ?
Each company has the right to define its employees’ tolerance for clocking in. Thus, the tolerated time is the time agreed between employer and employee at the time of hiring.
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!
