There are a few key legal issues for employers in Brazil to think about before hiring employees in Brazil, such as employment agreements, wages to be paid, and employee benefits.
Employment contracts should not change from the law, particularly in any way that alters or circumvents a worker’s rights and responsibilities. There are times when an employer will make the employee look like an independent contractor; however, this has little impact if it is found that the person was performing as an employee. Courts will consider the place of work, work hours, reporting requirements, the employer’s rules and compensation.
Another key legal issue for employers in Brazil is employee wages and hours. Strict labor requirements are necessary once a company has established a relationship with an employee. Those employees whose working hours go over the maximum hours per day earn overtime. However, overtime issues are a source of labor litigation. In addition, the legal workday varies according to the type of industry in which an employee works.
Employee benefits is another legal issue for employers to think about in Brazil. Employees of Brazilian companies have many benefits, such as a thirteenth salary, and employers are asked to comply with various social contributions, such as FGTS. Regular earnings and the thirteenth salary are subject to FGTS–Fundo de Garantia por Tempo de Serviço.
Even though, like many other countries, there are legal issues to contend with, Brazil is a lucrative venture for many different categories of companies. Brazil has a very large workforce and is very competitive and resourceful.
If a company wants to create and develop a thriving business in Brazil, it is imperative to understand the local customs and comply with the labor laws so that your company will be productive, resourceful and successful. Once the key legal issues for employers in Brazil have been evaluated and resolved, success will follow.
