Brazil

Brazil is the largest country in South America and 5th largest country in the world (by area). It’s one of the most ethnically diverse and multicultural nations, due to many decades of mass immigration from all around the world. Brazil shares a border with most countries in South America due to its size, and has a very diverse wildlife and ecology as it contains most of the Amazon rainforest.

In Brazil, the minimum wage is 1,212 Brazilian Reals per month, paid 13 times a year. The standard workweek is 40 hours, with 8 hours per day. Employees are also able to work 44 hours per week with 4 hours on Saturdays.

Parental Leave

Pregnant employees in Brazil are entitled to 120 days of maternity leave at their regular salary which is paid for by the employer, and then reimbursed to the employer by the government. This leave also applies to adoption. Fathers are entitled to 5 days of paternity leave at their regular salary. Same-sex couples in Brazil may apply to receive full maternity leave benefits.

Sick Leave

All employees in Brazil are entitled to receive paid sick leave. The first 15 days of the sick leave are paid for 100% by the employer, and from day 16 onwards social security will resume the payment with a cap of 6,101 BRL.

Paid Leave

Brazil has 13 public holidays, and employees are entitled to a minimum of 30 days of paid time off each year after completing 1 year at the company. The employee can take the time off in up to 3 periods of time, but one of these cannot be less than 14 days and the others cannot be less than 5 days at a time.

Employees are also allowed up to 5 days of paid leave for bereavement of a family member, 3 days of paid leave for their marriage, and up to 30 days to provide urgent/essential care to a family member younger than 12 years of age, and up to 15 days for a family member older than 12.

Process

Either employer or employee may terminate the employment contract with a minimum of 30 days notice — the employer they may give payment in lieu of the notice period.

Termination by an employer without just cause will trigger the payment of a penalty to the employee’s individual account in the Unemployment Fund equivalent to 40% of the total deposits made by the employer.

Notice Period

Notice periods in Brazil are usually stipulated in the employment contract or collective agreement. For employees with 1 year at the company, the employer must provide 30 days notice. Once the employer reaches 1 year at the company they are entitled to an additional 3 days of notice per year served, with a max of 90 days total.

Employees are also required to give their employers 30 days of notice to terminate their own employment contract.

Severance Pay

Severance pay is mandatory in Brazil, but the amount depends on the type of termination. Companies pay the equivalent of 8% of the employee’s monthly salary each month into a holding account called a Severance Fund, and the employee receives the balance of the account upon termination of the contract. If the termination is without cause, the company also has to pay an additional 40% of the account total to the employee.

Employees in Brazil are entitled to a 13th month payment, which is equal to 1 month’s salary (about 8.33% of the yearly salary) and is paid out in 2 parts. The first half is paid out in November and the second by the end of December. Employee must also be paid a Vacation bonus which is equal to 1/3rd of a month’s salary (calculated at 2.77% of the annual salary).

Union negotiations take place every year in Brazil around May/June. At this time, mandatory benefits and salary increases are negotiated and are then due to all employees. After negotiations, a collective bargaining agreement is released and the salary increase in backdated to August 1 of that year.