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Table of Content

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    Employer of Record in Brazil

    Expanding and hiring in Brazil? Brazil is the world’s ninth-largest economy. 

    It is potentially one of the richest countries with a robust industrial sector. 

    Also, Brazil is the most influential country in Latin America, with 50% of the population under 20 years of age. 

    This means that companies that want to grow here can tap into a bigger pool of exceptional talent.

    Brazil at a Glance

    Population: 217.6 million

    Currency: Real (R$) (BRL)

    Capital city: Brazilia

    Languages spoken: Portuguese

    GDP: USD1.92 billion

    This Latin American country presents a unique compliance landscape for global HR.

    Moreover, companies must factor in a complex set of labor and employment compliance in Brazil, including the labor code, social security policy, taxation, and work permit requirements (for foreign employees).

    Modern HR solutions, like an employer of record in Brazil, can significantly simplify global businesses' expansion into a foreign jurisdiction. 

    An Employer of Record in Brazil (EOR) is a third-party company that acts as the legal employer for your hired workers. 

    This means that the EOR in Brazil handles all the legal and administrative responsibilities associated with hiring workers, such as:

    • Calculates and pays salaries, taxes, and benefits.
    • Ensures that all labor laws and regulations are followed.
    • Manages employee benefits, including health insurance, retirement plans, and vacation time.
    • Handles HR functions such as onboarding, offboarding, and performance management.

    Skuad is among the leading providers of EOR services in Brazil which makes it easy for you to expand your business in Brazil. 

    The best part is that you can scale up your business without setting up a national subsidiary unit. 

    Our automated and unified global HR platform assists you in creating, paying, and seamlessly managing a globally distributed team. That’s not all. 

    Our in-country experts will also manage compliance with Brazil labor laws and taxes in Brazil. Connect with Skuad to know more about it.

    Also, wondering how much you can save using an employer of record services in Brazil. You can use our cost calculator to get a more accurate estimate. 

    Read along to learn more about hiring employees in Brazil and the onboarding process for Brazil, entity compliance in Brazil, the necessary HR compliance documents in Brazil, and tax compliance in Brazil. 

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    Hire Employees in Brazil

    Let’s discuss how you can simplify your hiring process in Brazil yet stay compliant: 

    What are the hiring modes in Brazil?

    You may either set up an entity in Brazil or partner with an employer of record in Brazil.

    Brazil employment rate is considered good, with 70% of the workforce geared towards the service sector. 

    Companies that plan to hire employees in Brazil can advertise their openings on job boards/portals. Indeed, Buscojobs, Catho, Vagas, and Trabalhabrasil are Brazil's top 5 job boards.

    These portals do an excellent job of bridging the gap between employers and fresh graduates. Companies can source, screen, and hire the best candidates from these portals. 

    However, relying too much on these portals can have a drawback. Companies may encounter misleading profiles at times.

    To alleviate such challenges, employers must consider partnering with Brazil employer of record like Skuad. 

    Our in-house experts hire and manage remote teams from over 150 countries. 

    They will not only handle the hiring and onboarding of your employees but also arrange Brazil work permits for foreigners. 

    Talk to a Skuad expert today to learn more.

    Incorporation: How to set up a subsidiary in Brazil?

    The process of setting up a subsidiary office in Brazil is quite similar to the rest of the countries. Yet, you need to have an in-depth understanding of Brazilian rules and regulations.

    Incorporating a holding company in Brazil is a five-step process that can take 60 to 90 days to complete. Please note that this does not include the time involved in opening a bank account.

    • Step 1: Determine the type of entity you want to establish. Ensure you choose a type compatible with your business activity and expansion plans.
    • Step 2: Register your Articles of Incorporation with complete company details to the Board of Trade.
    • Step 3: Registration with the Federal Revenue Bureau, The State Authority, and The Municipal Authority.
    • Step 4: Register your entity at the Brazilian Central Bank
    • Step 5: The last step is to open a bank account in Brazil.

    Pros and cons of setting up an entity in Brazil

    Pros:

    • You can benefit from various tax incentives and exemptions the Brazilian government offers.
    • You get complete control over employee work schedules and activities. 

    Cons:

    • It can be tricky to follow labor and employment compliance in Brazil​, including minimum wage, social security contributions, and unionization requirements.
    • You must also account for risks associated with currency fluctuations, as the Brazilian Real can be volatile.

    Fortunately, you can partner with a reliable employer of record companies in Brazil, saving you from the risks of making mistakes and facing penalties. 

    Skuad can help you diversify operations in Brazil without the need to set up an entity. Click here to know everything about it.

    EOR solution: Why you should go for an Employer Of Record in Brazil?

    Employers wanting to increase their market competitiveness and boost revenue should use the EOR solution. 

    It will take all the employee responsibilities off your shoulders. Skuad’s Brazil EOR (Employer of Record) is a leading global HR platform. 

    Our professionals will ensure all the compliances are met, and HR processes run smoothly. Find out more about Skuad here.

    EOR services in Brazil

    Skuad’s Brazil EOR Solution can assist you with all your basic hiring needs. It makes business diversification in Brazil much less complicated and arduous. 

    Our Globally automated HR platform and powerful dashboard can tailor-fit HR solutions to your requirements. 

    That’s not all; our in-country professionals will also handle your HR tasks, employment contracts, and Brazil work visa requirements.

    In addition, we will manage your timesheets, probation, termination, work permits, and employee benefits in compliance with Brazilian laws. 

    You will have ample time to refine your business growth strategies and boost your profits. Book a demo today to learn everything about Skuad’s employer of record service.

    Read more

    Onboarding & Agreements per Brazillian Business Culture

    The employee onboarding process for Brazil involves providing necessary information, training, and support for their success in their roles. 

    You can follow the below guidelines to effectively onboard new employees and ensure their success in your organization: 

    How to successfully onboard employees in Brazil

    1. Develop a detailed plan outlining the steps involved in onboarding, including the duration, responsible parties, and key activities.
    2. Provide clear and timely communication throughout onboarding, ensuring new employees feel informed and supported.
    3. Offer training on company policies, procedures, and job-specific skills to enable new hires to perform their duties effectively.
    4. Assign a mentor or buddy to guide new employees and answer any questions.
    5. Schedule regular check-ins with new employees to assess their progress and address any concerns.
    6. Provide constructive feedback and support to help new employees succeed in their roles.

    Types of employment agreements in Brazil

    • Indefinite-Term Contract: The most common employment contract in Brazil, with no fixed duration.
    • Fixed-Term Contract: A contract with a specified duration, often used for temporary or project-based work.
    • Internship Contract: A contract for students or recent graduates to gain work experience.
    • Outsourced Contract: A contract with an external service provider to perform specific tasks or functions.

    Onboarding checklist: Unique to Brazillian labor laws

    • Ensure that foreign employees have the necessary work permits and visas.
    • Register new employees with the Social Security System (INSS). You can use the eSocial platform for the same. 
    • If applicable, inform new employees about their right to join a labor union.
    • Consider offering an annual bonus or a 13th-month salary, as it is common practice in Brazil.
    • Ensure compliance with all relevant labor laws and regulations, including those related to the minimum wage in Brazil, overtime, and working conditions.
    Read more

    Taxes

    Here is a detailed breakdown of Brazil's tax rate for employers and employees: 

    Employer Taxation in Brazil

    Tax Explanation
    Payroll Tax
    Group A - Payroll Burden and Obligations – Obliged for all cases
    Category Tax Rate
    INSS 23%
    Third-Party Companies 5.8%
    FGTS 8%
    Group B - Payroll Burden and Obligations – Obliged for all cases, except Employee Self-Registration
    Category Tax Rate
    1/12 Vacation 8.33%
    1/3 Holidays 2.78%
    13th Salary 8.33%
    Taxes Over Burden 7.50%
    Group C
    Category Tax Rate
    Early Dismissal 8.33%
    FGTS 5.11%
    Taxes Over Burden 5.21%

    Employee Taxation

    Tax Explanation
    Income Tax
    Income Range in BRL Tax Rate
    Up to 22,847.76 0%
    22,847.76 – 33,919.80 7.5%
    33,919.80 – 45,012.61 15%
    45,012.61 – 55,976.16 22.5%
    55,976.16 and above 27.5%
    Payroll Tax
    Category Tax Rate
    Social Security 7.50% to 14%
    Read more

    Compliance Requirements for Employers in Brazil

    You can hire in Brazil securely after considering the following compliance requirements: 

    Brazil employment laws 

    Before you initiate hiring in Brazil, it is essential to understand its basic employment structure. The Brazilian Employment Law regulates employee agreements, entitlements, and labor unions in the country. 

    Moreover, Brazil's labor laws also play a vital role in safeguarding the rights and interests of the Brazilian workforce.

    The Consolidação Das Leis Do Trabalho (CLT) administers all employment laws in Brazil by the Federal Constitution 1988. 

    The Labor Unions compulsorily represent every employee and employer operating in Brazil.

    Please note that employment contracts in Brazil are often for an indefinite term. Moreover, fixed-term employment contracts are allowed only in specific cases. 

    Another type of employment agreement in Brazil is employment-at-will. Any party to the contract is free to terminate the agreement without cause. 

    However, it is liable to give a prior notice and severance pay, if applicable.

    Brazil's generous employee entitlements make it a favorite destination for job seekers. Mandatory employee health benefits in Brazil include medical and dental care, lump-sum death benefits, pensions and retirement plans, and maternity and paternity leaves. 

    Supplementary benefits include disability benefits and life insurance.

    The Brazilian Social Security System, Unified Health System, The National Regulatory Agency for Private Health Insurance and Plans (ANS), and The National Institute for Social Security (INSS) manage all employee benefits in Brazil.

    Rather than investing time in understanding the confusing and complex labor laws, compensation, and benefits mandates in Brazil, it is advisable to collaborate with a local payroll provider. 

    Skuad will mitigate this challenge and give you time to focus on your business goals. Click here to learn more about employment in Brazil.

    Contractors vs full-time employees: Which is the right option?

    Are you planning to enter the Brazilian market? If so, you first need to hire a remote team there. 

    Many hiring companies in Brazil offer services to help you hire contractual or full-time employees. Still, the main challenge lies in hiring contractors or full-time employees. 

    Let us understand the pros and cons of hiring contractors and full-time employees.

    Hiring contractors

    Companies should go for independent contractors if they have a short-term project in Brazil. 

    It is one of the most cost-effective options to attain your business expansion goals. 

    Moreover, you will be spared from the hassle of handling employee benefits, payroll, statutory payments, and taxes. But, whatever the case, you must comply with the Brazilian Labour Laws.

    Hiring full-time employees

    If you plan a long-term diversification project in Brazil, you should hire full-time employees. It might seem costly initially, but it will help create a solid workforce base for your company. 

    You will have a reliable remote team that will ensure continuous contribution to the business.

    Collaborate with Skuad to get the best opinion on this matter. Our in-country experts will help you identify the right option and hire a talented remote team. 

    They will free you from all the stress of employee liabilities and responsibilities. 

    Click here to learn more about Skuad’s employers of record EOR solution.

    Different types of visas in Brazil

    Work and residency visas are required for employees who wish to work, receive payment, and stay in Brazil. 

    They need to file an application at the Brazilian Consulate or Embassy located in their home country. 

    Please note that the visa application process might take up to three months, and the visa fee can vary from country to country.

    Although there are 10 different types of visas in Brazil, they are categorized into three major types:

    1. Tourist Visa (VITUR)
    2. Temporary Visa (VITEM): This visa is valid for two years and can be extended for another two years.
    3. Diplomatic, Official, and Permanent Visa
    Visa Category Explanation
    Process To Apply For A Visa At the Brazilian Consulate / Embassy
    • Find and contact the Brazil Embassy. Learn about the documentation process and requirements.
    • Apply for the visa appointment after completing the Brazil Visa Application Form. This is an online process wherein you need to upload electronic copies of your documents.
    • Show up at the Consulate with all your original documents and confirmation number. Pay the visa processing fee and wait for your application to process.
    • On confirmation, the Embassy staff will inform you about the outcome of your visa application. You can either collect your visa personally or get it through the mail
    What Are the Common Documents Required for All Types of Visas in Brazil?
    • Original passport with two blank pages and a validity of at least six months.
    • Passport size photograph
    • The Brazil Visa Application Form Receipt
    • Proof of employment status
    • Return flight tickets
    • Proof of financial means to bear the expenses of stay in Brazil
    • Proof of accommodation like hotel reservation in Brazil
    • Visa fee payment proof
    • Any other documents requested by the Brazil Consulate
    Visa Specific Documents
    For Business Visa
    • Letter of invitation from the employer in Brazil
    • A special letter from the employer stating the reason behind your visit to Brazil
    For Work Visa
    • Approval from the Ministry of Labor
    • Employment contract, registration documents of the employer, and so on
    • Certificate of conduct from the police department of your country
    For Student Visa
    • Certificate of conduct from the police department of your country
    • Letter of admission confirmation or enrolment from the college or university in Brazil
    • Bank statement to prove your financial viability to cover your expenses during your stay in Brazil
    Please note that all the documents should be legalized or apostilled by the Brazilian Embassy of your country.

    Work permit: What should you know about work permits in Brazil?

    Both employers and employees must participate in the work permit process. According to the law of employment in Brazil, your company must have a registered subsidiary in Brazil to get a work permit.

    But, Skuad’s EOR solutions can assist you in sponsoring work permits in Brazil without any physical entity setup. 

    Our in-house experts can streamline document collection and government approvals for different types of work visas. 

    Connect with the expert today to learn about getting a work permit in Brazil.

    eSocial platform in Brazil

    In Brazil, you must report all your labor, social security, and tax obligations on the newly designed eSocial platform. 

    Both private companies and public sector employers must use the system, which applies to businesses of all sizes, from large corporations to small entrepreneurs, with one employee.

    eSocial consolidates various employer obligations, such as payroll, worker registration, social security contributions (FGTS), tax withholdings, and information on labor contracts and occupational health and safety information, into a single platform. 

    This eliminates the need to report separately to different government bodies.

    Further, you must report events in real time or within specified deadlines. 

    Fines/Penalties per labor laws in Brazil

    Here are key areas you can face fines/penalties for non-compliance when hiring in Brazil. Generally, fines/penalties are doubled upon repeated violations:

    Violation Fines/Penalty
    Failure to update the eSocial platform Minimum fine of BRL BRL 440.07 but could reach up to BRL 44,007.30
    Failure to register employees BRL 800 - BRL 3,000 per worker
    Employing minors BRL 416.18 - BRL 2,080.90 per employed minor
    Inadequate Workplace Safety BRL 2,000 - BRL 6,000 per violation
    Delays in Payment of wages and bonuses BRL 176.03 per aggrieved employee
    Non-compliance with Employee Benefits 30%: levied on the total FGTS debt
    Workplace discrimination 10 times the highest salary

    Data protection & employee privacy rights in Brazil

    Brazillian labor laws emphasize transparency and accountability when protecting employee privacy. 

    The General Data Protection Law (LGPD) and the Labor Code regulate employee data collection, use, and sharing. 

    Key provisions include obtaining consent, limiting data collection, ensuring data security, and providing employees with rights to access and rectify their data.

    Read more

    Payroll in Brazil

    Brazil's payroll cycle can be monthly or bi-weekly. It is paid on the 15th and 30th of every month. Brazil also mandates the concept of the 13th salary

    This means that employees will get a 13th salary equal to one month at the end of the year.

    Best ways to pay your employees in Brazil

    You may either pay your employees directly via bank transfer and checks or as a simpler alternative, you may use an EOR as your payroll partner.

    However, companies looking to pay employees in Brazil should consider payroll outsourcing services

    Brazil payroll outsourcing will free them from all the payroll and tax complications and formalities. 

    Why don’t you connect with our experts here for more details?

    Salary in Brazil

    The minimum wage in Brazil varies regionally, with an acceptable nationwide level of 1.320,00 Brazilian Reais. Alternatively, Brazil's minimum wage in USD is 256 per month. 

    To estimate the salaries of your newly hired employees in Brazil, you can explore average salary benchmarks for various roles, adjust for local taxes, and view employer costs for hiring in Brazil. 

    Our salary insight tool provides detailed information on Brazil minimum salary, and gross and net salaries, considering Brazillian withholding tax and other local legal obligations such as social security and benefits.

    Benefits & Compensation per Brazillian employment law

    Brazil's labor law mandates you to pass on a comprehensive benefits package to all your employees. 

    Moreover, Brazil is the only country that offers free universal health coverage to all its citizens. Here's a breakdown of some of the key compensation and benefits in Brazil:

    Entitlements Explanation
    Lump-Sum Death Benefits The employer pays lump-sum death benefits to the dependents of the deceased employee from the date of death. Please note that this benefit is payable to both retired and non-retired employees. Spouses, unmarried siblings, dependent minors, and children below 21 years of age are all eligible for this benefit.
    Amount – The eligible dependent will get up to 100% of the entire retirement benefits that the employee was getting after retirement or will get on retirement. The amount is equally distributed among all the survivors.
    Medical and Dental Care Every employee working in Brazil is entitled to medical and dental care benefits. It is a contributory benefit that is managed by the Brazilian social security system National Institute of Social Security (INSS) healthcare facilities. On the other hand, the National Regulatory Agency(NRA) regulates dental and health insurance in Brazil.
    ANS also determines the minimum and standard coverage that applies to every health insurance provider in Brazil. So, the final coverage amount of every insurance provider is almost the same. The slight difference might occur due to the network of doctors, clinics, and hospitals.
    Retirement The retirement pension will be calculated as 60% of the employee's average contribution earnings, plus an extra 2% for each year of social security contributions the individual has made more than 15 years (women) or 20 years (men).
    Pension There are 3 types of pension plans, as follows.
    1. Survivors, Retirement, and Disability Pension – This program is managed by INSS. It is given to employees who have suffered injuries or have become disabled due to work-related accidents or illness.
    2. Old Age Pension - The standard age limit to get old-age pension benefits in Brazil is 65 for males and 62 for females. The minimum eligible limit of monthly contributions to INSS for male employees is 240. Whereas, this limit is 180 for female employees.
    3. Special Pension - A special pension is given to employees who have worked in exhaustive and unhealthy working conditions.
    Read more

    Worker Rights per Brazilian Labor Laws

    You must respect the following worker rights per the labor laws in Brazil:

    Entitlements Explanation
    Working Hours A full-time working week is 44 hours. The maximum daily working time limit is eight hours in Brazil. However, all employees who work over six hours a day get a mandatory hour-long rest.
    Overtime The overtime in Brazil is limited to up to two hours a day. Any number of hours worked over eight is called overtime in Brazil.
    Employees who work overtime get 150% of their regular salary. Moreover, employees who work on a holiday have a right to get 200% of their regular salary. However, an employee doing overtime from home does not get any benefit under this entitlement.

    Remote & Hybrid Work Policy in Brazil

    Most remote workers are classified as exempt employees per Brazilian labor laws. 

    Moreover, there are no clear provisions for remote & hybrid work systems in Brazil. You can factor in the following unique considerations when deciding upon Brazil workplace culture for remote workers in Brazil: 

    • The General Data Protection Law (LGPD) requires you to have measures in place to protect employee data accessed remotely.
    • Remote workers retain the same rights as office employees, including benefits, vacation time, and minimum wage.
    • Notice and severance pay requirements for termination apply equally to on-site and remote employees.

    Furthermore, you can review this remote work readiness checklist to ensure proper technology and infrastructure requirements.

    Leave Policy per Brazil Employment Laws

    You can align your HR policy with the Brazil leave policy for better work productivity and employee morale: 

    Annual Holidays  in Brazil: 

    • New Year’s Day (1st Jan)
    • Universal Brotherhood Day (1st Jan)
    • Shrove Tuesday (16th Feb)
    • Good Friday (2nd Apr)
    • Easter Sunday (4th Apr)
    • Tiradentes Day (21st Apr)
    • Labor Day (1st May)
    • Corpus Christi (3rd Jun)
    • Independence Day of Brazil (7th Sep)
    • Our Lady of Aparecida’s Day (12th Oct)
    • All Souls Day (2nd Nov)
    • Republic Day (15th Nov)
    • Christmas Day (25th Dec)
    Entitlements Explanation
    Paid Brazillian Holidays Brazil holiday traditions:
    • Founding of Belém
    • Saint Sebastian
    • Founding of the first city in Brazil
    • Founding of Sao Paulo
    • Founding of Santos
    • Founding of Brasilia
    • Founding of Saint George
    • Bahia Independence Day
    • Sergipe Political Emancipation Day
    • Constitutionalist Revolution
    • Our Lady of the Good Voyage
    • Emancipation of the city of Campo Grande
    • Our Lady of the Light in the Pine
    • Farroupilha's Revolution
    • Creation of the State of Mato
    • Uruaçú and Cunhaú Martyrs Day
    • Founding of Goiânia
    • Founding of São Carlos
    • Zumbi of Palmares
    • Our Lady of Apresentação
    • Evangelical Day
    • Our Lady of Conceição
    • Emancipation of the Province of Paraná
    Sick Leaves Every employee on sick leave gets 100% pay on the first 15 days of the sickness from their employers. However, from the 16th day, employees start getting payment from the Social Security Department.
    Maternity Leaves Female employees in Brazil get a total of 120 days of paid maternity leave. Also, they can extend the leave by four weeks. However, the permission is only given on strong medical grounds. Employees get 100% of their pay during this time, but companies can deduct some amount for social security contributions. Employees can also extend their maternity leave by 180 days if their employer is registered under Empresa Cidade.
    Paternity Leave Fathers get a five-day paternity leave in Brazil. They are entitled to get 100% payment from the employer. Fathers can also extend their paternity leave by 20 days if their employer is registered under Empresa Cidade.
    Other Leaves
    • Marriage Leave - Employees in Brazil get a three-day leave for their marriage.
    • Bereavement Leave – Employees get a two-day leave on unfortunate occurrences like the death of a spouse, parent, or child
    Read more

    Permissible Background Checks in Brazil 

    You can conduct background checks on employees in Brazil following the country's labor laws and the General Data Protection Law (LGPD). 

    The key rules and restrictions include:

    • Criminal Records: You can only request a criminal background check if the position requires it for safety reasons or involves a high level of trust (e.g., security personnel or financial positions). 
    • Educational and Employment History: Verifying past employment, education credentials, and professional qualifications is generally permissible and common in Brazil as long as the information is relevant to the position.
    • Credit History: Checking an employee’s credit history is generally not allowed unless directly related to the job, such as in financial roles where trustworthiness is crucial.
    • Social Media: While checking public social media profiles is technically allowed, Brazilian law discourages employers from hiring based on personal lifestyle choices unrelated to job performance.
    • Health Records: Health information is classified as sensitive data and can only be requested if it's relevant to the job or required by law, such as for positions involving physical labor.

    Employee Termination in Brazil & Offboardings 

    The standard probation period in Brazil is 45 days. However, with the employee and employer's mutual consent, it can be increased to 90 days.

    According to the employment contract law in Brazil, contract agreements can be dismissed by giving proper notice to the parties involved. 

    However, some employees are excused from this rule of termination of employment in Brazil. They are:

    • Union representatives,
    • Pregnant employees,
    • Members of CIPA – Internal Committee for Accidents Prevention,
    • Employees with employment-related injuries and
    • Employees who come under collective contracts.
    Party Initiating Termination Notice Period
    Employer
    • Up to 1 year of service – 30 days notice
    • Above 1 year of service – 30 days notice + three more days for every year worked. This limit can go to 60 additional days only.
    Employee
    • The employees are liable to give a 30 days notice period.
    • However, if they are still on probation, they can request to get relieved earlier than 30 days.
    Termination under mutual consent The notice period is split in this case.

    Brazil's offboarding process involves exit interviews, final pay, and return of company property. Here’s a comprehensive checklist for a smooth employee exit. 

    Companies planning to expand operations in Brazil should consider collaborating with a trustworthy EOR solution provider. 

    Skuad can help handle your termination, probationary period in Brazil, and offboarding formalities. Click here for more details.

    Read more

    Business Culture in Brazil

    Brazillian business culture blends European influences with Latin American flair. 

    Here are some Brazillian social norms and business etiquette in Brazil that you must know: 

    • Brazilian culture in business is to respect hierarchy and formality. 
    • Brazil’s social norms are more flexible with time than in other cultures. 
    • Brazil’s business culture is to work with people they know and trust. 
    • Brazilians are known for their hospitality and enjoy socializing. 
    • Football is a national passion in Brazil. 
    • While many Brazilians speak English, learning Portuguese can demonstrate your respect for Brazil’s culture. 

    What Is PEO? Understanding The Basic Difference Between PEO And EOR

    A Professional Employer Organization (PEO) is an organization that works with mid- and small-scale companies in a partnership called co-employment. 

    It offers HR outsourcing, payroll management, taxation, compliance, and employee benefits. Despite these services, all the major employee decisions lie with the employer only.

    On the other hand, EOR offers services that are more or less similar to those of a professional employer organization in Brazil. But, unlike PEO, EOR becomes the legal employer. 

    It holds all the liabilities of recruiting, employing, and terminating employees.

    Employers that want to increase their competitiveness in the market and boost revenue should go for the EOR solution. It will take all the employee responsibilities off your shoulders. 

    Skuad’s Brazil EOR (Employer of Record) is a leading global HR platform. 

    Our professionals will ensure all the compliances are met, and HR processes run smoothly. Find out more about Skuad here.

    Read more

    Conclusion

    Brazil offers its investors a plethora of lucrative commercial opportunities. 

    The country's huge consumer market, international trade access to the rest of America, investor-friendly laws, and excellent infrastructure facilities make It a promising destination for business expansion.

    However, the Brazilian commercial market also has its set of complexities. Collaborating with an EOR solution provider can help mitigate such challenges. 

    This is where Skuad steps in. Skuad’s Brazil EOR (Employer of Record) solution allows you to build a brilliant remote team without setting up a local entity.

    Why should you partner with us? Our professionals help you discover exceptional global talent. Our cloud-based HR platform removes the hassles of creating entities and managing taxes and local laws.

    And we aim to eradicate every roadblock that comes in the way of your business expansion process.

    You can completely trust a brand with a presence in over 150 countries. So what are you waiting for? Fill out this form and fulfill your dream of expanding your business in Brazil.

    FAQs

    1) What is an employer of record in Brazil?

    An Employer of Record (EOR) in Brazil manages employment responsibilities as per Brazillian culture in business, such as local onboarding, payroll, tax compliance, and adherence to local labor laws. By partnering with an EOR in Brazil, businesses can hire and pay employees and contractors in Brazil without setting up a local entity, thus facilitating global employment and ensuring legal compliance.

    2) Is an employer of record the same as a PEO?

    No, the employer of record differs from a PEO regarding roles and responsibilities in handling employees. A Professional Employer Organization (PEO) partners with companies to co-manage employee-related functions, whereas an Employer of Record (EOR) fully assumes all responsibilities related to hiring international employees, including onboarding, payroll, taxes, compliance with local laws, and more.

    3) How much does an EOR cost?

    The cost of an Employer of Record (EOR) depends on the number of employees, location, services needed, industry, and additional fees. You can check out Skuad’s cost calculator to estimate the cost of hiring an employee in Brazil or other 160+ countries using EOR services.

    4) What are the employment rules in Brazil?

    Brazil's employment laws cover minimum wage, working hours, vacation, sick leave, maternity/paternity leave, social security, and unionization. Any statutory violations will incur fines and penalties. Additionally, you must actively update employee work conditions on the eSocial platform. 

    5) What are the types of employment in Brazil?

    Brazil offers indefinite-term, fixed-term, internship, outsourced, part-time, and temporary contracts. The choice of contract depends on your specific needs. 

    6) What is the difference between an employer of record and a staffing agency?

    An EOR is the legal employer for your foreign workers, handling payroll, benefits, and legal compliance as per Brazil norms. In contrast, a staffing agency typically focuses on finding and providing temporary or contract workers to meet your short-term staffing needs. 

    While both can involve hiring employees, the EOR takes on the full legal and administrative responsibilities. At the same time, the staffing agency primarily acts as an intermediary between you and the temporary workers.

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    Employer of Record in Brazil

    Expanding and hiring in Brazil? Brazil is the world’s ninth-largest economy. 

    It is potentially one of the richest countries with a robust industrial sector. 

    Also, Brazil is the most influential country in Latin America, with 50% of the population under 20 years of age. 

    This means that companies that want to grow here can tap into a bigger pool of exceptional talent.

    Brazil at a Glance

    Population: 217.6 million

    Currency: Real (R$) (BRL)

    Capital city: Brazilia

    Languages spoken: Portuguese

    GDP: USD1.92 billion

    This Latin American country presents a unique compliance landscape for global HR.

    Moreover, companies must factor in a complex set of labor and employment compliance in Brazil, including the labor code, social security policy, taxation, and work permit requirements (for foreign employees).

    Modern HR solutions, like an employer of record in Brazil, can significantly simplify global businesses' expansion into a foreign jurisdiction. 

    An Employer of Record in Brazil (EOR) is a third-party company that acts as the legal employer for your hired workers. 

    This means that the EOR in Brazil handles all the legal and administrative responsibilities associated with hiring workers, such as:

    • Calculates and pays salaries, taxes, and benefits.
    • Ensures that all labor laws and regulations are followed.
    • Manages employee benefits, including health insurance, retirement plans, and vacation time.
    • Handles HR functions such as onboarding, offboarding, and performance management.

    Skuad is among the leading providers of EOR services in Brazil which makes it easy for you to expand your business in Brazil. 

    The best part is that you can scale up your business without setting up a national subsidiary unit. 

    Our automated and unified global HR platform assists you in creating, paying, and seamlessly managing a globally distributed team. That’s not all. 

    Our in-country experts will also manage compliance with Brazil labor laws and taxes in Brazil. Connect with Skuad to know more about it.

    Also, wondering how much you can save using an employer of record services in Brazil. You can use our cost calculator to get a more accurate estimate. 

    Read along to learn more about hiring employees in Brazil and the onboarding process for Brazil, entity compliance in Brazil, the necessary HR compliance documents in Brazil, and tax compliance in Brazil. 

    Read more

    Hire Employees in Brazil

    Let’s discuss how you can simplify your hiring process in Brazil yet stay compliant: 

    What are the hiring modes in Brazil?

    You may either set up an entity in Brazil or partner with an employer of record in Brazil.

    Brazil employment rate is considered good, with 70% of the workforce geared towards the service sector. 

    Companies that plan to hire employees in Brazil can advertise their openings on job boards/portals. Indeed, Buscojobs, Catho, Vagas, and Trabalhabrasil are Brazil's top 5 job boards.

    These portals do an excellent job of bridging the gap between employers and fresh graduates. Companies can source, screen, and hire the best candidates from these portals. 

    However, relying too much on these portals can have a drawback. Companies may encounter misleading profiles at times.

    To alleviate such challenges, employers must consider partnering with Brazil employer of record like Skuad. 

    Our in-house experts hire and manage remote teams from over 150 countries. 

    They will not only handle the hiring and onboarding of your employees but also arrange Brazil work permits for foreigners. 

    Talk to a Skuad expert today to learn more.

    Incorporation: How to set up a subsidiary in Brazil?

    The process of setting up a subsidiary office in Brazil is quite similar to the rest of the countries. Yet, you need to have an in-depth understanding of Brazilian rules and regulations.

    Incorporating a holding company in Brazil is a five-step process that can take 60 to 90 days to complete. Please note that this does not include the time involved in opening a bank account.

    • Step 1: Determine the type of entity you want to establish. Ensure you choose a type compatible with your business activity and expansion plans.
    • Step 2: Register your Articles of Incorporation with complete company details to the Board of Trade.
    • Step 3: Registration with the Federal Revenue Bureau, The State Authority, and The Municipal Authority.
    • Step 4: Register your entity at the Brazilian Central Bank
    • Step 5: The last step is to open a bank account in Brazil.

    Pros and cons of setting up an entity in Brazil

    Pros:

    • You can benefit from various tax incentives and exemptions the Brazilian government offers.
    • You get complete control over employee work schedules and activities. 

    Cons:

    • It can be tricky to follow labor and employment compliance in Brazil​, including minimum wage, social security contributions, and unionization requirements.
    • You must also account for risks associated with currency fluctuations, as the Brazilian Real can be volatile.

    Fortunately, you can partner with a reliable employer of record companies in Brazil, saving you from the risks of making mistakes and facing penalties. 

    Skuad can help you diversify operations in Brazil without the need to set up an entity. Click here to know everything about it.

    EOR solution: Why you should go for an Employer Of Record in Brazil?

    Employers wanting to increase their market competitiveness and boost revenue should use the EOR solution. 

    It will take all the employee responsibilities off your shoulders. Skuad’s Brazil EOR (Employer of Record) is a leading global HR platform. 

    Our professionals will ensure all the compliances are met, and HR processes run smoothly. Find out more about Skuad here.

    EOR services in Brazil

    Skuad’s Brazil EOR Solution can assist you with all your basic hiring needs. It makes business diversification in Brazil much less complicated and arduous. 

    Our Globally automated HR platform and powerful dashboard can tailor-fit HR solutions to your requirements. 

    That’s not all; our in-country professionals will also handle your HR tasks, employment contracts, and Brazil work visa requirements.

    In addition, we will manage your timesheets, probation, termination, work permits, and employee benefits in compliance with Brazilian laws. 

    You will have ample time to refine your business growth strategies and boost your profits. Book a demo today to learn everything about Skuad’s employer of record service.

    Read more

    Onboarding & Agreements per Brazillian Business Culture

    The employee onboarding process for Brazil involves providing necessary information, training, and support for their success in their roles. 

    You can follow the below guidelines to effectively onboard new employees and ensure their success in your organization: 

    How to successfully onboard employees in Brazil

    1. Develop a detailed plan outlining the steps involved in onboarding, including the duration, responsible parties, and key activities.
    2. Provide clear and timely communication throughout onboarding, ensuring new employees feel informed and supported.
    3. Offer training on company policies, procedures, and job-specific skills to enable new hires to perform their duties effectively.
    4. Assign a mentor or buddy to guide new employees and answer any questions.
    5. Schedule regular check-ins with new employees to assess their progress and address any concerns.
    6. Provide constructive feedback and support to help new employees succeed in their roles.

    Types of employment agreements in Brazil

    • Indefinite-Term Contract: The most common employment contract in Brazil, with no fixed duration.
    • Fixed-Term Contract: A contract with a specified duration, often used for temporary or project-based work.
    • Internship Contract: A contract for students or recent graduates to gain work experience.
    • Outsourced Contract: A contract with an external service provider to perform specific tasks or functions.

    Onboarding checklist: Unique to Brazillian labor laws

    • Ensure that foreign employees have the necessary work permits and visas.
    • Register new employees with the Social Security System (INSS). You can use the eSocial platform for the same. 
    • If applicable, inform new employees about their right to join a labor union.
    • Consider offering an annual bonus or a 13th-month salary, as it is common practice in Brazil.
    • Ensure compliance with all relevant labor laws and regulations, including those related to the minimum wage in Brazil, overtime, and working conditions.
    Read more

    Taxes

    Here is a detailed breakdown of Brazil's tax rate for employers and employees: 

    Employer Taxation in Brazil

    Tax Explanation
    Payroll Tax
    Group A - Payroll Burden and Obligations – Obliged for all cases
    Category Tax Rate
    INSS 23%
    Third-Party Companies 5.8%
    FGTS 8%
    Group B - Payroll Burden and Obligations – Obliged for all cases, except Employee Self-Registration
    Category Tax Rate
    1/12 Vacation 8.33%
    1/3 Holidays 2.78%
    13th Salary 8.33%
    Taxes Over Burden 7.50%
    Group C
    Category Tax Rate
    Early Dismissal 8.33%
    FGTS 5.11%
    Taxes Over Burden 5.21%

    Employee Taxation

    Tax Explanation
    Income Tax
    Income Range in BRL Tax Rate
    Up to 22,847.76 0%
    22,847.76 – 33,919.80 7.5%
    33,919.80 – 45,012.61 15%
    45,012.61 – 55,976.16 22.5%
    55,976.16 and above 27.5%
    Payroll Tax
    Category Tax Rate
    Social Security 7.50% to 14%
    Read more

    Compliance Requirements for Employers in Brazil

    You can hire in Brazil securely after considering the following compliance requirements: 

    Brazil employment laws 

    Before you initiate hiring in Brazil, it is essential to understand its basic employment structure. The Brazilian Employment Law regulates employee agreements, entitlements, and labor unions in the country. 

    Moreover, Brazil's labor laws also play a vital role in safeguarding the rights and interests of the Brazilian workforce.

    The Consolidação Das Leis Do Trabalho (CLT) administers all employment laws in Brazil by the Federal Constitution 1988. 

    The Labor Unions compulsorily represent every employee and employer operating in Brazil.

    Please note that employment contracts in Brazil are often for an indefinite term. Moreover, fixed-term employment contracts are allowed only in specific cases. 

    Another type of employment agreement in Brazil is employment-at-will. Any party to the contract is free to terminate the agreement without cause. 

    However, it is liable to give a prior notice and severance pay, if applicable.

    Brazil's generous employee entitlements make it a favorite destination for job seekers. Mandatory employee health benefits in Brazil include medical and dental care, lump-sum death benefits, pensions and retirement plans, and maternity and paternity leaves. 

    Supplementary benefits include disability benefits and life insurance.

    The Brazilian Social Security System, Unified Health System, The National Regulatory Agency for Private Health Insurance and Plans (ANS), and The National Institute for Social Security (INSS) manage all employee benefits in Brazil.

    Rather than investing time in understanding the confusing and complex labor laws, compensation, and benefits mandates in Brazil, it is advisable to collaborate with a local payroll provider. 

    Skuad will mitigate this challenge and give you time to focus on your business goals. Click here to learn more about employment in Brazil.

    Contractors vs full-time employees: Which is the right option?

    Are you planning to enter the Brazilian market? If so, you first need to hire a remote team there. 

    Many hiring companies in Brazil offer services to help you hire contractual or full-time employees. Still, the main challenge lies in hiring contractors or full-time employees. 

    Let us understand the pros and cons of hiring contractors and full-time employees.

    Hiring contractors

    Companies should go for independent contractors if they have a short-term project in Brazil. 

    It is one of the most cost-effective options to attain your business expansion goals. 

    Moreover, you will be spared from the hassle of handling employee benefits, payroll, statutory payments, and taxes. But, whatever the case, you must comply with the Brazilian Labour Laws.

    Hiring full-time employees

    If you plan a long-term diversification project in Brazil, you should hire full-time employees. It might seem costly initially, but it will help create a solid workforce base for your company. 

    You will have a reliable remote team that will ensure continuous contribution to the business.

    Collaborate with Skuad to get the best opinion on this matter. Our in-country experts will help you identify the right option and hire a talented remote team. 

    They will free you from all the stress of employee liabilities and responsibilities. 

    Click here to learn more about Skuad’s employers of record EOR solution.

    Different types of visas in Brazil

    Work and residency visas are required for employees who wish to work, receive payment, and stay in Brazil. 

    They need to file an application at the Brazilian Consulate or Embassy located in their home country. 

    Please note that the visa application process might take up to three months, and the visa fee can vary from country to country.

    Although there are 10 different types of visas in Brazil, they are categorized into three major types:

    1. Tourist Visa (VITUR)
    2. Temporary Visa (VITEM): This visa is valid for two years and can be extended for another two years.
    3. Diplomatic, Official, and Permanent Visa
    Visa Category Explanation
    Process To Apply For A Visa At the Brazilian Consulate / Embassy
    • Find and contact the Brazil Embassy. Learn about the documentation process and requirements.
    • Apply for the visa appointment after completing the Brazil Visa Application Form. This is an online process wherein you need to upload electronic copies of your documents.
    • Show up at the Consulate with all your original documents and confirmation number. Pay the visa processing fee and wait for your application to process.
    • On confirmation, the Embassy staff will inform you about the outcome of your visa application. You can either collect your visa personally or get it through the mail
    What Are the Common Documents Required for All Types of Visas in Brazil?
    • Original passport with two blank pages and a validity of at least six months.
    • Passport size photograph
    • The Brazil Visa Application Form Receipt
    • Proof of employment status
    • Return flight tickets
    • Proof of financial means to bear the expenses of stay in Brazil
    • Proof of accommodation like hotel reservation in Brazil
    • Visa fee payment proof
    • Any other documents requested by the Brazil Consulate
    Visa Specific Documents
    For Business Visa
    • Letter of invitation from the employer in Brazil
    • A special letter from the employer stating the reason behind your visit to Brazil
    For Work Visa
    • Approval from the Ministry of Labor
    • Employment contract, registration documents of the employer, and so on
    • Certificate of conduct from the police department of your country
    For Student Visa
    • Certificate of conduct from the police department of your country
    • Letter of admission confirmation or enrolment from the college or university in Brazil
    • Bank statement to prove your financial viability to cover your expenses during your stay in Brazil
    Please note that all the documents should be legalized or apostilled by the Brazilian Embassy of your country.

    Work permit: What should you know about work permits in Brazil?

    Both employers and employees must participate in the work permit process. According to the law of employment in Brazil, your company must have a registered subsidiary in Brazil to get a work permit.

    But, Skuad’s EOR solutions can assist you in sponsoring work permits in Brazil without any physical entity setup. 

    Our in-house experts can streamline document collection and government approvals for different types of work visas. 

    Connect with the expert today to learn about getting a work permit in Brazil.

    eSocial platform in Brazil

    In Brazil, you must report all your labor, social security, and tax obligations on the newly designed eSocial platform. 

    Both private companies and public sector employers must use the system, which applies to businesses of all sizes, from large corporations to small entrepreneurs, with one employee.

    eSocial consolidates various employer obligations, such as payroll, worker registration, social security contributions (FGTS), tax withholdings, and information on labor contracts and occupational health and safety information, into a single platform. 

    This eliminates the need to report separately to different government bodies.

    Further, you must report events in real time or within specified deadlines. 

    Fines/Penalties per labor laws in Brazil

    Here are key areas you can face fines/penalties for non-compliance when hiring in Brazil. Generally, fines/penalties are doubled upon repeated violations:

    Violation Fines/Penalty
    Failure to update the eSocial platform Minimum fine of BRL BRL 440.07 but could reach up to BRL 44,007.30
    Failure to register employees BRL 800 - BRL 3,000 per worker
    Employing minors BRL 416.18 - BRL 2,080.90 per employed minor
    Inadequate Workplace Safety BRL 2,000 - BRL 6,000 per violation
    Delays in Payment of wages and bonuses BRL 176.03 per aggrieved employee
    Non-compliance with Employee Benefits 30%: levied on the total FGTS debt
    Workplace discrimination 10 times the highest salary

    Data protection & employee privacy rights in Brazil

    Brazillian labor laws emphasize transparency and accountability when protecting employee privacy. 

    The General Data Protection Law (LGPD) and the Labor Code regulate employee data collection, use, and sharing. 

    Key provisions include obtaining consent, limiting data collection, ensuring data security, and providing employees with rights to access and rectify their data.

    Read more

    Payroll in Brazil

    Brazil's payroll cycle can be monthly or bi-weekly. It is paid on the 15th and 30th of every month. Brazil also mandates the concept of the 13th salary

    This means that employees will get a 13th salary equal to one month at the end of the year.

    Best ways to pay your employees in Brazil

    You may either pay your employees directly via bank transfer and checks or as a simpler alternative, you may use an EOR as your payroll partner.

    However, companies looking to pay employees in Brazil should consider payroll outsourcing services

    Brazil payroll outsourcing will free them from all the payroll and tax complications and formalities. 

    Why don’t you connect with our experts here for more details?

    Salary in Brazil

    The minimum wage in Brazil varies regionally, with an acceptable nationwide level of 1.320,00 Brazilian Reais. Alternatively, Brazil's minimum wage in USD is 256 per month. 

    To estimate the salaries of your newly hired employees in Brazil, you can explore average salary benchmarks for various roles, adjust for local taxes, and view employer costs for hiring in Brazil. 

    Our salary insight tool provides detailed information on Brazil minimum salary, and gross and net salaries, considering Brazillian withholding tax and other local legal obligations such as social security and benefits.

    Benefits & Compensation per Brazillian employment law

    Brazil's labor law mandates you to pass on a comprehensive benefits package to all your employees. 

    Moreover, Brazil is the only country that offers free universal health coverage to all its citizens. Here's a breakdown of some of the key compensation and benefits in Brazil:

    Entitlements Explanation
    Lump-Sum Death Benefits The employer pays lump-sum death benefits to the dependents of the deceased employee from the date of death. Please note that this benefit is payable to both retired and non-retired employees. Spouses, unmarried siblings, dependent minors, and children below 21 years of age are all eligible for this benefit.
    Amount – The eligible dependent will get up to 100% of the entire retirement benefits that the employee was getting after retirement or will get on retirement. The amount is equally distributed among all the survivors.
    Medical and Dental Care Every employee working in Brazil is entitled to medical and dental care benefits. It is a contributory benefit that is managed by the Brazilian social security system National Institute of Social Security (INSS) healthcare facilities. On the other hand, the National Regulatory Agency(NRA) regulates dental and health insurance in Brazil.
    ANS also determines the minimum and standard coverage that applies to every health insurance provider in Brazil. So, the final coverage amount of every insurance provider is almost the same. The slight difference might occur due to the network of doctors, clinics, and hospitals.
    Retirement The retirement pension will be calculated as 60% of the employee's average contribution earnings, plus an extra 2% for each year of social security contributions the individual has made more than 15 years (women) or 20 years (men).
    Pension There are 3 types of pension plans, as follows.
    1. Survivors, Retirement, and Disability Pension – This program is managed by INSS. It is given to employees who have suffered injuries or have become disabled due to work-related accidents or illness.
    2. Old Age Pension - The standard age limit to get old-age pension benefits in Brazil is 65 for males and 62 for females. The minimum eligible limit of monthly contributions to INSS for male employees is 240. Whereas, this limit is 180 for female employees.
    3. Special Pension - A special pension is given to employees who have worked in exhaustive and unhealthy working conditions.
    Read more

    Worker Rights per Brazilian Labor Laws

    You must respect the following worker rights per the labor laws in Brazil:

    Entitlements Explanation
    Working Hours A full-time working week is 44 hours. The maximum daily working time limit is eight hours in Brazil. However, all employees who work over six hours a day get a mandatory hour-long rest.
    Overtime The overtime in Brazil is limited to up to two hours a day. Any number of hours worked over eight is called overtime in Brazil.
    Employees who work overtime get 150% of their regular salary. Moreover, employees who work on a holiday have a right to get 200% of their regular salary. However, an employee doing overtime from home does not get any benefit under this entitlement.

    Remote & Hybrid Work Policy in Brazil

    Most remote workers are classified as exempt employees per Brazilian labor laws. 

    Moreover, there are no clear provisions for remote & hybrid work systems in Brazil. You can factor in the following unique considerations when deciding upon Brazil workplace culture for remote workers in Brazil: 

    • The General Data Protection Law (LGPD) requires you to have measures in place to protect employee data accessed remotely.
    • Remote workers retain the same rights as office employees, including benefits, vacation time, and minimum wage.
    • Notice and severance pay requirements for termination apply equally to on-site and remote employees.

    Furthermore, you can review this remote work readiness checklist to ensure proper technology and infrastructure requirements.

    Leave Policy per Brazil Employment Laws

    You can align your HR policy with the Brazil leave policy for better work productivity and employee morale: 

    Annual Holidays  in Brazil: 

    • New Year’s Day (1st Jan)
    • Universal Brotherhood Day (1st Jan)
    • Shrove Tuesday (16th Feb)
    • Good Friday (2nd Apr)
    • Easter Sunday (4th Apr)
    • Tiradentes Day (21st Apr)
    • Labor Day (1st May)
    • Corpus Christi (3rd Jun)
    • Independence Day of Brazil (7th Sep)
    • Our Lady of Aparecida’s Day (12th Oct)
    • All Souls Day (2nd Nov)
    • Republic Day (15th Nov)
    • Christmas Day (25th Dec)
    Entitlements Explanation
    Paid Brazillian Holidays Brazil holiday traditions:
    • Founding of Belém
    • Saint Sebastian
    • Founding of the first city in Brazil
    • Founding of Sao Paulo
    • Founding of Santos
    • Founding of Brasilia
    • Founding of Saint George
    • Bahia Independence Day
    • Sergipe Political Emancipation Day
    • Constitutionalist Revolution
    • Our Lady of the Good Voyage
    • Emancipation of the city of Campo Grande
    • Our Lady of the Light in the Pine
    • Farroupilha's Revolution
    • Creation of the State of Mato
    • Uruaçú and Cunhaú Martyrs Day
    • Founding of Goiânia
    • Founding of São Carlos
    • Zumbi of Palmares
    • Our Lady of Apresentação
    • Evangelical Day
    • Our Lady of Conceição
    • Emancipation of the Province of Paraná
    Sick Leaves Every employee on sick leave gets 100% pay on the first 15 days of the sickness from their employers. However, from the 16th day, employees start getting payment from the Social Security Department.
    Maternity Leaves Female employees in Brazil get a total of 120 days of paid maternity leave. Also, they can extend the leave by four weeks. However, the permission is only given on strong medical grounds. Employees get 100% of their pay during this time, but companies can deduct some amount for social security contributions. Employees can also extend their maternity leave by 180 days if their employer is registered under Empresa Cidade.
    Paternity Leave Fathers get a five-day paternity leave in Brazil. They are entitled to get 100% payment from the employer. Fathers can also extend their paternity leave by 20 days if their employer is registered under Empresa Cidade.
    Other Leaves
    • Marriage Leave - Employees in Brazil get a three-day leave for their marriage.
    • Bereavement Leave – Employees get a two-day leave on unfortunate occurrences like the death of a spouse, parent, or child
    Read more

    Permissible Background Checks in Brazil 

    You can conduct background checks on employees in Brazil following the country's labor laws and the General Data Protection Law (LGPD). 

    The key rules and restrictions include:

    • Criminal Records: You can only request a criminal background check if the position requires it for safety reasons or involves a high level of trust (e.g., security personnel or financial positions). 
    • Educational and Employment History: Verifying past employment, education credentials, and professional qualifications is generally permissible and common in Brazil as long as the information is relevant to the position.
    • Credit History: Checking an employee’s credit history is generally not allowed unless directly related to the job, such as in financial roles where trustworthiness is crucial.
    • Social Media: While checking public social media profiles is technically allowed, Brazilian law discourages employers from hiring based on personal lifestyle choices unrelated to job performance.
    • Health Records: Health information is classified as sensitive data and can only be requested if it's relevant to the job or required by law, such as for positions involving physical labor.

    Employee Termination in Brazil & Offboardings 

    The standard probation period in Brazil is 45 days. However, with the employee and employer's mutual consent, it can be increased to 90 days.

    According to the employment contract law in Brazil, contract agreements can be dismissed by giving proper notice to the parties involved. 

    However, some employees are excused from this rule of termination of employment in Brazil. They are:

    • Union representatives,
    • Pregnant employees,
    • Members of CIPA – Internal Committee for Accidents Prevention,
    • Employees with employment-related injuries and
    • Employees who come under collective contracts.
    Party Initiating Termination Notice Period
    Employer
    • Up to 1 year of service – 30 days notice
    • Above 1 year of service – 30 days notice + three more days for every year worked. This limit can go to 60 additional days only.
    Employee
    • The employees are liable to give a 30 days notice period.
    • However, if they are still on probation, they can request to get relieved earlier than 30 days.
    Termination under mutual consent The notice period is split in this case.

    Brazil's offboarding process involves exit interviews, final pay, and return of company property. Here’s a comprehensive checklist for a smooth employee exit. 

    Companies planning to expand operations in Brazil should consider collaborating with a trustworthy EOR solution provider. 

    Skuad can help handle your termination, probationary period in Brazil, and offboarding formalities. Click here for more details.

    Read more

    Business Culture in Brazil

    Brazillian business culture blends European influences with Latin American flair. 

    Here are some Brazillian social norms and business etiquette in Brazil that you must know: 

    • Brazilian culture in business is to respect hierarchy and formality. 
    • Brazil’s social norms are more flexible with time than in other cultures. 
    • Brazil’s business culture is to work with people they know and trust. 
    • Brazilians are known for their hospitality and enjoy socializing. 
    • Football is a national passion in Brazil. 
    • While many Brazilians speak English, learning Portuguese can demonstrate your respect for Brazil’s culture. 

    What Is PEO? Understanding The Basic Difference Between PEO And EOR

    A Professional Employer Organization (PEO) is an organization that works with mid- and small-scale companies in a partnership called co-employment. 

    It offers HR outsourcing, payroll management, taxation, compliance, and employee benefits. Despite these services, all the major employee decisions lie with the employer only.

    On the other hand, EOR offers services that are more or less similar to those of a professional employer organization in Brazil. But, unlike PEO, EOR becomes the legal employer. 

    It holds all the liabilities of recruiting, employing, and terminating employees.

    Employers that want to increase their competitiveness in the market and boost revenue should go for the EOR solution. It will take all the employee responsibilities off your shoulders. 

    Skuad’s Brazil EOR (Employer of Record) is a leading global HR platform. 

    Our professionals will ensure all the compliances are met, and HR processes run smoothly. Find out more about Skuad here.

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