• How To Hire Employees In Brazil
  • May 23, 2014 | Author: José Salvador Torres Silva
  • Law Firm: Manucci Advogados - Belo Horizonte Office
  • The popular Brazilian saying that “Brazil is the country of the future” has been showing greater signs of veracity these days due to the country’s long-lasting financial stability and also because of its abundance of natural resources and labor.

    These qualities, in addition to several other assets, have increasingly lured foreign investors. However, before foreign investors start to operate and hire labor in Brazil, they must first:

    • register the company with the Ministry of Labor and Employment;

    • register the company with the Mandatory Fund for Unemployment Benefit (locally known as FGTS) for the payment of mandatory contributions that will benefit the employees if they are dismissed;

    • register the company with the National Institute for Social Security (locally knows as INSS) for the payment of social security contributions to be made by the company and by the employees;

    Like similar employment-related laws in much of Europe, these laws governing employment relationships in Brazil are protective of the employee, which is why all companies must ensure the following rights to their employees, regardless of the company’s business:

    A 13th annual salary, the payment of which can be divided into two installments as follows: half between the beginning of February and the last day of November, and the other half by December 20th;

    30 days’ paid vacation, plus an additional 1/3 of the employee’s salary; Weekly shift of 44 hours maximum and 8 hours daily, with the possibility of an additional 2 hours overtime daily;

    Overtime to be paid at time and a half (minimum);

    Reduction in the length of night-shift hours (one hour is reduced to 52 minutes and 30 seconds);

    The night-shift premium is for work between 8 p.m. and 6 a.m.; Payment of danger money for work in unhealthy or hazardous conditions;

    Paid Weekly Rest (locally known as DSR);

    Limitation as to the type of work that can be done by underage workers, such as in hazardous or unhealthy activities, on night shifts and/or in places or jobs that may be harmful to their morality;

    Transportation costs between the workers’ home and their place of work;

    Besides ensuring these rights, companies must also comply with regulations concerning work health and medicine, as well as with quotas for disabled employees and for young apprentices, in addition to paying all taxes, contributions and other levies on payroll.

    In addition to these requirements and regulations, it must be mentioned that other specific requirements may also apply, depending on the type of business the company wants to operate in.