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Global Employment Law Guide

Brazil

(Latin America) Firm Demarest Advogados

Contributors Renato Canizares

Updated 18 May 2026
What are the different categories of employment status (for example, employee, worker, self-employed individuals, etc)?

Brazilian law recognizes several categories of employment status. The core category is the employee (empregado), defined by the Consolidated Labor Laws (Consolidação das Leis do Trabalho — "CLT") as a natural person who provides non-occasional services to an employer, under the employer's direction and control (known as "subordination"), in exchange for payment. If a relationship is legally characterized as employment, the worker gains access to the full range of CLT and constitutional labor protections, including wage protections, paid vacation, deposits to the Severance Indemnity Fund (Fundo de Garantia do Tempo de Serviço — "FGTS"), severance-related payments, and other statutory benefits.

The intermittent worker is also an employee under the CLT, but the work is not continuous; it alternates between periods of active service and inactivity, with subordination applying during work calls. Intermittent work must be formalized in writing and is subject to detailed CLT rules governing calls, acceptance procedures, and payment obligations.

The Federal Constitution guarantees equal rights between a worker with a permanent employment bond and a dockworker and similar categories (trabalhador avulso) — a category typically associated with port and cargo-related arrangements in which the worker provides services to multiple companies without a standard employment bond.

In addition, Brazilian law recognizes the independent contractor (trabalhador autônomo). The CLT expressly provides that engaging an independent contractor — provided legal formalities are observed — does not, by itself, create an employment relationship, even if the services rendered are continuous or exclusive. The distinction carries significant practical importance, as it is often central to misclassification disputes: the label used in the contract is not decisive; the factual reality of the arrangement — particularly the presence or absence of subordination — drives the classification analysis.

Brazil also has a dedicated statutory regime for temporary work under Law No. 6,019/1974 (Lei do Trabalho Temporário). Temporary work is defined as the work of a natural person hired by a temporary work agency and placed at the disposal of a client company to cover a temporary substitution need or a complementary demand for services.

Domestic work is governed by its own statutory framework: Supplementary Law No. 150/2015 (Lei Complementar 150/2015). This law defines domestic employee status by reference to several cumulative criteria: services must be continuous, paid, subordinate, and personal; they must serve a non-profit purpose within the employer's family residence; and they must be performed on more than two days per week.

Internships are governed by Law No. 11,788/2008 (Lei do Estágio). Where statutory requirements are met, the internship does not create an employment bond. Among other conditions, the law requires the execution of a term of commitment (termo de compromisso) and effective supervision by the educational institution and the granting party. If an internship is maintained in violation of these statutory requirements, the arrangement may be reclassified as an employment relationship for labor and social security purposes.

Apprenticeship in Brazil is governed by the CLT and by the Apprenticeship Law (Law No. 10,097/2000), which together establish a framework for the professional and technical training of young workers. An apprentice must be between 14 and 24 years of age, except in the case of persons with disabilities, for whom no maximum age limit applies. The apprenticeship must be formalized through a written apprenticeship agreement (contrato de aprendizagem), which is a special type of fixed-term employment contract limited to a maximum of two years. As a condition of the arrangement, the apprentice must be enrolled in a program of technical-professional training (formação técnico-profissional metódica) delivered by a qualified training institution. Medium and large employers are required by law to hire apprentices in a number corresponding to at least five percent and no more than fifteen percent of their workforce in positions that demand professional qualification; certain exceptions and adjustments may apply depending on the sector and applicable regulations. The apprentice is entitled to at least the hourly minimum wage and to the labor protections applicable to the category, including FGTS deposits — albeit at a reduced rate — and registration in the Work and Social Security Card (Carteira de Trabalho e Previdência Social — "CTPS").

Are there different types of employment contracts (for example, fixed-term, indefinite)?

Yes. The CLT recognizes that the individual employment contract may be formed tacitly or expressly, verbally or in writing, and may be for an indefinite term or a fixed term, including under the intermittent work modality.

The indefinite-term contract is the default structure for standard employment in Brazil. Termination is possible, but it triggers statutory procedures and mandatory payments.

A fixed-term contract is valid only in specific circumstances — for example, where the nature of the service is transitory, the business activity itself is temporary, or the parties enter into an experience contract (contrato de experiência). The fixed term cannot exceed two years, and the experience contract cannot exceed 90 days.

Intermittent contracts must be in writing and must specify the hourly rate, which may not be lower than the applicable minimum salary hourly rate. The CLT sets out detailed rules on call notice, acceptance, and end-of-period payments, including proportional vacation plus the constitutional one-third bonus and proportional thirteenth salary (13º salário).

Part-time contracts are defined by weekly hour limits. A part-time employee is defined as an employee hired to work up to 30 hours per week, without the possibility of overtime, or up to 26 hours per week, with up to 6 weekly overtime hours. The statutory rights applicable to a part-time employee are the same as those of a full-time employee.

The CLT also contains a specific chapter addressing telework and remote work, covering applicable concepts and contract mechanics. Subsequent legislative reforms have further refined the relevant definitions and requirements.

What requirements need to be met in order for an employment contract to be valid?

Brazilian law allows significant freedom in employment contracting, but only within the protective boundaries established by statute. The CLT provides that contractual stipulations may not contravene worker-protection provisions, applicable collective instruments, or decisions of competent authorities. Even where both parties agree to a given term, changes that are harmful to the employee are restricted.

Regarding form, the CLT recognizes that employment contracts may be verbal or written. However, certain employment regimes depend heavily on written terms — for example, intermittent work and telework must be formalized in writing.

In Brazil, an employment relationship may be valid even if not properly documented, but employers are subject to strict registration obligations. These include compliance with the requirements applicable to the Work and Social Security Card (Carteira de Trabalho e Previdência Social — "CTPS"), which is mandatory for the exercise of any employment and also for certain self-employed remunerated activities; maintaining a formal register of workers, whether in physical books, files, or electronic systems; and, upon termination, annotating the CTPS, communicating the termination to the competent authorities, and paying all termination amounts within the statutory deadlines.

Employers are also required to report employment-related information through the eSocial system (Sistema de Escrituração Digital das Obrigações Fiscais, Previdenciárias e Trabalhistas), which is a digital platform maintained by the Federal Government that unifies the submission of labor, social security, and tax obligations. Through eSocial, employers transmit data related to hiring, termination, payroll, occupational health and safety events, and other workforce information. Notably, the registration of employees in the CTPS and the maintenance of employee records are now preferably carried out digitally through this system, with the digital CTPS ("CTPS Digital") being automatically fed by the information reported via eSocial.

Are part-time employees afforded the same rights as full-time employees?

Part-time employment is expressly regulated by the CLT. Under the current framework, part-time work is defined as up to 30 hours per week, without the possibility of weekly overtime, or up to 26 hours per week, with up to 6 weekly overtime hours.

The CLT provides that part-time salary must be proportional to the reduced schedule, as compared with full-time employees performing the same function. As a practical matter, most statutory rights still apply to part-time employees — including vacation, thirteenth salary, and FGTS — but the corresponding monetary amounts are scaled in proportion to salary and time worked. The Constitution anchors key worker rights broadly, regardless of the type of working arrangement.

Can employment contracts be assigned?

In Brazil, employment is a personal relationship, and "assignment" is not typically treated as a straightforward contractual transfer of a worker. In practice, changes in the identity of the employer usually occur through business transfer or succession (sucessão trabalhista), or through lawful staffing structures, such as temporary work under Law No. 6,019/1974. Separately, a change in the employee's work location (transfer) is subject to its own statutory limits.

That said, Brazilian law does authorize the transfer of an employment contract between companies belonging to the same economic group, and such transfers may also occur between unrelated companies. In either case, however, the employee's consent is required. The employment relationship remains personal from the worker's perspective, and any change in the employing entity must be agreed upon by the employee, preserving all previously acquired rights and contractual conditions.

What rights do employees have (to object, to severance), if any, when the company they work for is transferred as a going concern?

The CLT provides that a change in the company's legal structure does not affect the acquired rights of its employees. Likewise, a change in ownership or corporate form does not affect existing employment contracts. Where business succession is characterized under the CLT, labor obligations — including those incurred during the period in which employees worked for the predecessor — are assumed by the successor. The predecessor may remain jointly liable if fraud in the transfer is established.

Brazilian statutes focus on continuity and protection of rights rather than granting employees an automatic right to object to a transfer as such. It is important to clarify that severance payments (verbas rescisórias) are applicable only in the event of a termination of the employment contract; a business transfer or succession, in and of itself, is not a termination event and therefore does not trigger the payment of severance amounts. The employment contract continues in force with the successor employer under the same terms and conditions.

As a rule, however, the employee must consent to the transfer to another employer (not applicable in a simple change of control). If the transfer results in a material change to the conditions of work that is detrimental to the employee, or if the employer commits a serious breach of its obligations, the employee may seek judicial recognition of indirect termination (rescisão indireta), which would then give rise to the payment of full severance entitlements.

Do you have statutory rights for employees on change of control of an employer? If so, please give the statute.

Brazil does not provide a special change-of-control termination regime for ordinary private employment relationships. A share transaction or corporate control change often does not alter the employer's legal identity and therefore does not, by itself, affect the employment relationship.

Importantly, regardless of the nature of the corporate transaction, the employee's rights remain the same after the change of control. The employee retains all vested rights and all contractual conditions that were in effect at the date of the transaction, such as salary levels, benefits, length of service, and any other terms of employment. The successor employer is bound by these pre-existing conditions and may not unilaterally reduce or eliminate them.

In what circumstances can employers unilaterally change the terms of employment, and what remedies (if any) are afforded to an employee?

Article 468 of the CLT is the central provision governing this matter. It provides that changes to the conditions of an individual employment contract are lawful only where they are made by mutual consent and do not cause direct or indirect harm to the employee. Any clause that fails to meet these requirements is null.

Common statutory remedies include seeking judicial nullification of the harmful change and payment of any resulting differences owed, and/or claiming indirect termination (rescisão indireta), whereby the employee treats the contract as rescinded and seeks the applicable indemnities on the basis that the employer has breached its obligations or committed serious misconduct. Brazilian labor law also provides a framework for non-material damages (moral and existential damages) arising from the employment relationship.

A particularly important application of this principle is the rule of salary irreducibility (irredutibilidade salarial). The Federal Constitution, in its Article 7, item VI, enshrines salary irreducibility as a fundamental right of workers, meaning that the employer cannot unilaterally reduce the employee's salary. The sole exception recognized by the Constitution is a reduction effected through a collective bargaining agreement (convenção coletiva de trabalho or acordo coletivo de trabalho). In practice, the CLT further provides, in its Article 611-A, that collective agreements prevail over statutory provisions on matters such as salary and working hours, but even in such cases, collective negotiations that result in salary reductions are subject to scrutiny and are typically conditioned upon the granting of corresponding advantages or protections to the affected employees, such as employment stability during the period of reduced compensation.

Is your jurisdiction an employment-at-will jurisdiction? What are the employer’s termination rights?

Brazilian employers may terminate employment without cause, but they must comply with statutory procedures and pay the required termination amounts, including notice-related payments and FGTS-related penalties where applicable.

The CLT enumerates the grounds for dismissal for cause, including dishonesty, repeated poor performance, breach of company secrets, indiscipline or insubordination, and abandonment of employment, among others.

Where there is no fixed term, the terminating party must provide advance notice, except in the case of dismissal for just cause. The CLT sets baseline notice rules, and Law No. 12,506/2011 establishes a system of proportional notice: 30 days for the first year of service, plus 3 additional days for each subsequent year, up to a maximum of 90 days. Upon termination, the employer must document the termination and pay all amounts owed within the statutory timelines. The CLT establishes a 10-day deadline, counted from the end of the contract, for the delivery of documents and payment of termination amounts, with statutory penalties for non-compliance.

The specific severance amounts due to the employee vary depending on the modality of termination:

In a dismissal without cause, the employer must pay the balance of unpaid salary, prior notice (worked or indemnified), proportional thirteenth salary, accrued and proportional vacation plus the constitutional one-third bonus, and the 40% penalty on FGTS deposits. The employee is also entitled to withdraw FGTS balances and, if eligible, to receive unemployment insurance (seguro-desemprego).

In a voluntary resignation (pedido de demissão), the employee is entitled to the balance of unpaid salary, proportional thirteenth salary, and accrued and proportional vacation plus the one-third bonus. The employee must provide prior notice to the employer (or have the corresponding amount deducted). In this modality, there is no entitlement to the 40% FGTS penalty, no right to withdraw FGTS balances, and no access to unemployment insurance.

In a termination by mutual agreement, introduced by the 2017 Labor Reform, the employee receives the balance of unpaid salary, proportional thirteenth salary, accrued and proportional vacation plus the one-third bonus, half of the prior notice period (if indemnified), and a penalty of 20% (rather than 40%) on FGTS deposits. The employee may withdraw up to 80% of the FGTS balance but is not entitled to unemployment insurance.

In a dismissal for cause, the employee is entitled only to the balance of unpaid salary and any accrued vacation (from completed accrual periods) plus the one-third bonus. There is no right to prior notice, proportional thirteenth salary, proportional vacation, the FGTS penalty, FGTS withdrawal, or unemployment insurance.

Are there remedies for dismissal without cause or wrongful termination?

Brazilian law does not frame termination entitlements as "remedies" in the common-law sense, but rather as statutory termination payments that are mandated by law upon the occurrence of specific termination events. Under the FGTS legislation, when an employee is dismissed without cause, the employer must deposit into the employee's FGTS account an additional amount equal to 40% of the total deposits made during the contract term, adjusted for monetary correction and interest.

While the exact composition of the termination package depends on the type of termination and any applicable collective bargaining agreement (convenção coletiva or acordo coletivo de trabalho), the statutory entitlements for a dismissal without cause typically include notice pay (or worked notice), pro-rata thirteenth salary, accrued and proportional vacation pay, the 40% FGTS penalty, and the issuance of properly completed termination documents.

The CLT contains mechanisms that penalize non-payment or late payment of termination amounts. It also requires, under certain circumstances, the payment of undisputed termination amounts when a dispute reaches the Labor Court.

Additionally, if a dismissed employee holds any form of employment protection at the time of dismissal — such as protections afforded to pregnant employees, employees who have suffered occupational accidents, union representatives, members of the Internal Commission for Accident Prevention and Harassment ("CIPA"), or other categories recognized by law or collective bargaining agreements — the termination may be deemed null. In such cases, the employee may seek judicial reinstatement to the position, with payment of all wages and benefits corresponding to the period of unlawful removal. Where reintegration is not feasible or advisable, courts may convert the remedy into an indemnity corresponding to the period of stability.

Are there protections for whistleblowers?

Brazil does not have a single, general private-sector whistleblower employment statute comparable to those found in some other jurisdictions. In practice, however, retaliation risks may still be challenged through labor litigation theories — including claims of unlawful dismissal, discrimination, and moral damages — depending on the facts and evidence. The CLT also provides a specific framework for non-material damages arising from the employment relationship.

It is common that Law No. 13,608/2018, applicable to reporting and identity protection in the public administration context, is applied by analogy to private relations. In this sense, such law includes protections against retaliation, listing examples such as arbitrary dismissal, unjustified role changes, disciplinary sanctions, pay reductions, benefit removal, and negative references. 

From an employment law perspective, it is worth noting that Article 23 of Law No. 14,457/2022 requires companies with an Internal Commission for Accident Prevention and Harassment ("CIPA") to adopt rules of conduct regarding sexual harassment and other forms of violence in the workplace, as well as to establish a complaint channel to receive and follow up on reports. This channel must guarantee the anonymity of the complainant, and the company must carry out periodic awareness and training actions on the subject.

Do employees have a right to privacy? If so, what are the remedies for a breach?

Yes. The Constitution protects intimacy, private life, honor, and personal image. It also safeguards the secrecy of communications and data, subject to limited exceptions established by law.

The General Data Protection Law (Lei Geral de Proteção de Dados Pessoais — "LGPD", Law No. 13,709/2018) governs the processing of personal data by both public and private entities. Its aim is to protect the fundamental rights of freedom and privacy and the free development of personality. In the employment context, the LGPD affects areas such as background checks, human resources records, monitoring tools, CCTV, access controls, internal investigations, cross-border data transfers, and vendor management. Remedies include administrative and judicial measures, as well as damages claims, depending on the circumstances and the forum.

Are employees afforded any anti-discrimination protection?

Yes. Brazil has layered protections against discrimination in employment, drawing on both constitutional and statutory sources. The Constitution prohibits wage differences and discriminatory admission criteria based on sex, age, color, or civil status, and further prohibits discrimination in pay and hiring criteria against workers with disabilities. The CLT includes specific prohibitions tied to discriminatory admission and employment practices, including those related to pregnancy.

Law No. 9,029/1995 prohibits discriminatory and restrictive practices affecting access to work or the maintenance of the employment relationship. It lists protected grounds using an open-ended "among others" formulation, signaling that the enumeration is illustrative rather than exhaustive.

Brazil strengthened its equal-pay mechanisms through Law No. 14,611/2023 and its implementing regulation (Decree No. 11,795/2023), which address salary equality between women and men and establish mechanisms such as wage transparency reporting and corrective action plans. The specific details of these obligations depend on the applicable regulatory provisions. 

Are there statutory rights to vacation, medical leave and parental leave? Have there been any changes to leave benefits in the past 12 months? Is there any proposed legislation that employers should be aware of that will impact leave benefits?

Paid annual vacation. Under the CLT, every employee is entitled annually to a period of paid vacation without loss of remuneration. Vacation accrues after each 12-month period of contract effectiveness, and the duration of leave is linked to the employee's absence levels during the accrual period. The Constitution also guarantees paid annual vacation with at least an additional one-third of the employee's normal salary.

Sick leave and medical leave. Brazil combines labor and social security rules in this area. Under Law No. 8,213/1991, the benefit of auxílio por incapacidade temporária (temporary incapacity benefit, formerly known as auxílio-doença) for an employee becomes payable starting from the 16th day of absence, with the employer responsible for the first 15 days. Different rules apply to other categories of insured persons.

Maternity leave. The Constitution guarantees pregnancy leave of 120 days without loss of job or salary. In a recent change, Law No. 15,222/2025 (dated 29 September 2025) amended the CLT to allow the extension of maternity leave by up to 120 days following the hospital discharge of the newborn and the mother in specific circumstances. This law also amended Law No. 8,213/1991 to expand the period of maternity pay (salário-maternidade) receipt.

Paternity leave. The Constitution recognizes paternity leave "as fixed by law." Prior to the enactment of Law No. 15,371/2026, paternity leave was set at 5 days under the Temporary Constitutional Provisions Act ("ADCT"), with the possibility of an additional 15 days (totaling 20 days) for employers enrolled in the Citizen Company Program (Programa Empresa Cidadã), as provided by Law No. 11,770/2008. Law No. 15,371/2026 (dated 31 March 2026) created paternity pay (salário-paternidade) within the social security framework and provides for the gradual expansion of paternity leave: 10 days from 1 January 2027, 15 days from 1 January 2028, and 20 days from 1 January 2029, with the final step subject to fiscal-condition rules. Given the recent approval of this law, the topic is not expected to be materially revisited in the near term.

Short absences without salary loss. Article 473 of the CLT lists circumstances in which an employee may be absent from work without loss of salary, such as in connection with certain family events. The provision has been updated over time. In a very recent change, Law No. 15,377/2026 (dated 2 April 2026) added a duty for employers to inform employees about the possibility of taking time off for preventive HPV and cancer examinations, linked to the absences permitted under CLT art. 473.

Proposed legislation employers should monitor. Although the recent enactment of Law No. 15,371/2026 makes it unlikely that the core paternity leave framework will be substantially revisited in the short term, there are related proposals currently moving through the legislative process, but not a specific bill that is drawing attention.

Are restrictive covenants recognized and, if so, what are reasonable restrictions as to geography, duration and scope of activity?

Brazil does not have a single CLT provision specifically governing non-compete agreements in the way some jurisdictions do, but restrictive covenants appear regularly in practice, particularly for senior employees or roles involving access to sensitive information. Courts typically evaluate enforceability through reasonableness and proportionality analysis, requiring a genuine legitimate interest on the part of the employer. Brazilian labor jurisprudence expects that post-termination restrictions be accompanied by adequate compensation, particularly where the restriction effectively limits the worker's ability to earn a livelihood.

In assessing whether a non-compete clause is reasonable, courts and legal doctrine tend to analyze the proportionality of the restrictions along several key dimensions: the geographic scope of the restriction, which should be limited to the areas where the employer has a legitimate competitive interest; the duration of the restriction, which in practice is commonly set between 12 and 24 months; the scope of restricted activities, which should be narrowly tailored to protect specific interests rather than broadly precluding any professional activity; and the adequacy of the compensation offered to the employee in exchange for the restrictive obligation, which must be sufficient to offset the limitation on the worker's ability to earn a livelihood during the restricted period.

Can employees be terminated for refusing to sign a restrictive covenant? What serves as consideration for a restrictive covenant?

Regarding consideration and compensation, while not codified in a single CLT article, Brazilian labor courts routinely treat compensation as a key factor in determining whether a post-termination non-compete clause is enforceable in practice. A commonly adopted parameter in labor jurisprudence is the payment of one monthly salary for each month of restriction, although the adequacy of compensation is ultimately assessed on a case-by-case basis.

Whether an employee can be terminated for refusing to sign a restrictive covenant is highly fact-specific. An employer cannot impose a harmful unilateral change to the terms of employment, as contractual changes must be made by mutual consent and must not be detrimental to the employee. Thus, refusing to commit to a restrictive covenant is not grounds for a motivated termination.

In principle, the employment contract may be terminated without cause by the employer; however, terminating an employee right after the refusal to accept a restrictive covenant may be considered an abuse of the right to terminate the employment agreement and give rise to discussions.

Does your jurisdiction require contributions to a pension or retirement scheme?

Yes. Brazil's general social security system for most private-sector workers is the General Social Security Regime (Regime Geral de Previdência Social — "RGPS"). The social security financing statute (Law No. 8,212/1991) provides for both employee and employer contributions.

Employee contributions are deducted directly from the employee's salary by the employer, who acts as the withholding agent. The applicable rates are progressive, currently ranging from 7.5% to 14%, depending on the employee's contribution salary bracket, up to the social security ceiling.

Employer contributions are paid directly by the employer and are not deducted from the employee's compensation. The base employer contribution rate is 20% on total remuneration paid to employees. However, this is not the only charge borne by the employer: additional contributions are levied for work-accident insurance ("RAT"), third-party entities (terceiros / Sistema S), and other statutory surcharges. When all applicable contributions are considered, the total employer-side social security burden typically falls within a range of approximately 28.8% to 31.8% of total payroll, depending on the employer's sector and risk classification.

A key point regarding continued work after retirement: a retiree who works or returns to work in a RGPS-covered activity is treated as a mandatory insured person for that activity and remains subject to social security contributions.

In addition to the mandatory RGPS, employers may offer private pension plans as a corporate benefit. It is important to note that private pension arrangements are voluntary and supplementary in nature; they do not replace or exempt either the employer or the employee from the mandatory contributions to the RGPS.
The FGTS (Fundo de Garantia do Tempo de Serviço) is a statutory fund to which employers make monthly deposits on behalf of their employees. Withdrawals are permitted only upon the occurrence of specific events defined by law. For termination purposes, the hallmark feature is the 40% FGTS termination penalty payable by the employer in the case of dismissals without cause.

Are certain benefits mandated by your jurisdiction?

Yes. Some employee benefits are constitutionally or statutorily guaranteed, while others are commonly provided as a matter of market practice or through collective bargaining. The main mandatory benefits are described below.

Thirteenth salary (13º salário): Also known as the "Christmas bonus," this benefit was established by Law No. 4,090/1962 and consists of an additional annual payment equivalent to one month's salary, paid in two installments during the year. The first installment must be paid between February and November, and the second by December 20.

Paid vacation plus one-third bonus (férias + 1/3): Under the CLT, every employee is entitled to an annual period of paid vacation after completing a 12-month accrual period. The Constitution guarantees that vacation pay must include an additional one-third of the employee's normal salary (terço constitucional).

FGTS (Fundo de Garantia do Tempo de Serviço): The employer is required to deposit monthly an amount equivalent to 8% of the employee's gross remuneration into an individual FGTS account held in the employee's name at Caixa Econômica Federal. These deposits accumulate over time and function as a form of compulsory savings for the worker, accessible only upon the occurrence of specific events defined by law, such as dismissal without cause, retirement, or serious illness.

Transportation voucher (vale-transporte): Established by Law No. 7,418/1985, this benefit requires the employer to advance the cost of the employee's daily commute on public collective transportation. The employee may be charged up to 6% of their base salary to partially offset the cost, with the employer bearing the remainder.

In addition to these statutory benefits, collective bargaining agreements (convenções coletivas de trabalho CCT, or acordos coletivos de trabalhoACT) play a central role in defining employment benefits in Brazil. These instruments are negotiated between unions and employers or employer associations and establish mandatory rights and obligations for all employees within the relevant professional category. Collective agreements commonly provide for benefits such as meal vouchers (vale-refeição), food vouchers (vale-alimentação), supplementary health insurance, and dental plans, among others. Employers must comply with the applicable collective instrument for their sector and region.

Profit sharing (Participação nos Lucros ou Resultados — PLR): is constitutionally recognized and regulated by Law No. 10,101/2000. PLR is typically established through negotiation between the employer and employees or their union, and its payment depends on the applicable plan design. It is expressly excluded from the employee's remuneration base for labor and social security purposes.

Is it permitted to have a mandatory retirement age in your jurisdiction?

For most private-sector employment relationships governed by the CLT, Brazilian law does not impose a mandatory retirement age that automatically terminates the employment contract. Retirement under the General Social Security Regime ("RGPS") does not, by itself, affect or terminate the existing employment relationship. An employee who acquires the right to retire may continue to work under the same terms and conditions, and the employer has no legal basis to terminate the contract solely on account of the employee's retirement.

Establishing an internal policy that requires the dismissal of employees upon reaching retirement age or upon obtaining retirement benefits may constitute a discriminatory practice (age-based discrimination) and is prohibited under Brazilian law. Such practices may be challenged under Law No. 9,029/1995, which prohibits discriminatory practices affecting access to or maintenance of the employment relationship, and under constitutional anti-discrimination principles.

Brazil does, however, provide for compulsory retirement for certain categories of public agents under the Constitution's public-service retirement framework. Supplementary Law No. 152/2015 implements this provision, setting compulsory retirement at 75 years of age for various public roles.

Is it possible to cease pension or insured benefits (income continuance/disability insurance, healthcare, life assurance, etc.) when work continues beyond retirement age?

A retiree who continues working in an RGPS-covered activity remains a mandatory insured person for that activity and continues to be subject to social security contributions under the applicable financing rules.

Brazil has detailed rules governing the maintenance of employer-linked health plan coverage after retirement or dismissal without cause. These rules are anchored in Law No. 9,656/1998 and regulated by the National Supplementary Health Agency (Agência Nacional de Saúde Suplementar ANS). They apply where the worker contributed to the plan during active employment and assumes full payment of the premium upon departure.

Can an employer require that employees return to work in the office (absent government order to shut down)? If an employee refuses to return to the office, can the employer terminate the employee’s employment?

Brazilian law distinguishes between telework or remote work and in-person work and provides specific mechanisms for changing between these regimes. Under the CLT's telework provisions, the employer may determine a change from telework to in-person work, provided that a minimum 15-day transition period is guaranteed and the change is recorded in a contractual addendum.

If an employee refuses to comply with a lawful management instruction that falls within contractual and statutory limits, the employer may consider disciplinary measures. The CLT includes insubordination and indiscipline as potential grounds for dismissal with just cause, although the application of such measures depends on proportionality, proper documentation, and the specific facts of the case. At the same time, employers must respect the statutory limits on harmful unilateral changes and other protective rules.

Global Employment Law Guide

Brazil

(Latin America) Firm Demarest Advogados

Contributors Renato Canizares

Updated 18 May 2026