Labour law

Probation period, bonus, and notice period

Labour law

The Brazilian labour law favours the employee and protects him from discrimination and exploitation. And although most work contracts are established orally and then are replaced by the Carteira, certain conditions always apply.

The probation period must not exceed 90 days and the limitation of work contracts is only acceptable up to a period of two years. Even then the work agreement has to contain a clause which states why the limitation is necessary (in principle, Brazilian law dictates that work contracts should be unlimited). If a limited agreement is extended more than once it has to be transformed to an unlimited contract.

Each legally employed person in Brazil is entitled to an annual bonus which is paid twice, in November and December. Overtime work is paid with a premium of 50% except for Sundays and public holidays (100%) and night work is remunerated with an extra of 20%. Health risks and high risk jobs are also paid extra.

The legal period of notice is 30 days or longer (if the agreement states this specifically). If the employer dismisses an employee without a proper reason, he has to pay a penalty. If the dismissal is carried out due to an important reason (according to Labour Law), however, a compliance of the term of notice is not necessary.

The same regulation applies to working contracts (either written or oral) for other employment forms than full time. A temporary work contract (Contrato de Trabalho por Prazo Determinado) which is limited to a maximum of 2 years, follows the same regulation whereas a part-time contract (Contrato de Trabalho de Tempo Parcial) is limited to 25 hours per week and prohibits overtime.

Further reading

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