The Employer of Record (EOR) solution offered by Marzuna makes the process of expanding your business in Brazil easier. With our approach, you can easily expand your business without having to set up a Brazilian subsidiary company. Our platform’s automated and centralized HR solution enables you to assemble, pay, and efficiently manage a workforce that is dispersed globally. Additionally, our local experts handle tax and regulatory requirements so you may focus on your primary business activities. Please contact us to learn more about the Marzuna EOR solution for Brazil.
Prior to commencing recruitment activities in Brazil, it’s imperative to gain a solid understanding of the country’s employment system. The Brazil Employment Law, designed to safeguard the rights and interests of workers, governs employment contracts, benefits, and labor unions.
In accordance with the Federal Constitution of 1988, the Consolidação Das Leis Do Trabalho (CLT) is the authoritative body responsible for overseeing Brazil’s employment regulations, serving as a representative for all Brazilian companies and employees.
It’s worth noting that fixed-term employment contracts are only permissible in certain circumstances in Brazil, where employment agreements typically extend for an indefinite period. Termination of the employment contract by either party is possible without specifying a reason, but it requires appropriate notice and, if applicable, severance compensation.
Brazilian labor laws offer substantial employee benefits, including provisions for maternity and paternity leave, medical and dental coverage, lump-sum death payments, pensions, and retirement programs. Various entities such as the Brazilian Social Security System, Unified Health System, National Regulatory Agency for Private Health Insurance and Plans (ANS), and National Institute for Social Security (INSS) handle supplementary benefits like disability compensation and life insurance.
Brazil’s intricate compensation requirements and labor regulations can be challenging to comprehend and time-consuming to navigate. Seeking the assistance of a local payroll service provider is advisable, as they can guide you through the process and ensure compliance with the relevant rules and legislation.
| Entitlements | Explanation |
|---|---|
| Working Hours | 44 hours are spent working a full-time week. In Brazil, a day’s worth of labour is limited to eight hours. However, any employee who works more than six hours a day is required to take an hour off. |
| Overtime | Brazil only allows up to two hours of overtime each day. Overtime is defined as any additional hours worked over eight in Brazil.
Overtime pay for employees is equal to 150% of their base pay. Additionally, workers who report for duty on a holiday are entitled to 200% of their usual pay. A worker who works overtime from home, however, is not eligible for any benefits under this right. |
| Paid Public Holidays |
Regional holidays are as follows.
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| Sick Leaves | Employers give every employee on sick leave 100% of their wages for the first 15 days of their illness. However, the Social Security Administration begins paying employees on the sixteenth day. |
| Maternity Leaves | There are 120 days of paid maternity leave available to female employees in Brazil. They can even add another four weeks to the leave. The authorization is only granted, though, for compelling medical reasons. During this time, employees are paid in full, but employers are permitted to withdraw a certain amount for social security contributions. If their workplace is listed as an Empresea Cidada registered business, employees may additionally extend their maternity leave by 180 days. |
| Paternity Leave | Brazilian law grants fathers a five-day paternity leave. The employer is required to pay them in full. If their workplace is listed as an Empresea Cidada registered business, fathers may also extend their paternity vacation by 20 days. |
| Other Leaves |
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| Lump-Sum Death Benefits | The employer begins disbursing lump-sum death payments to the dead employee’s dependents on the day of death. Please be aware that both retired and non-retired personnel are eligible for this benefit. This benefit is available to spouses, unmarried siblings, dependent minors, and children under the age of 21.
Amount – Up to 100% of the total retirement benefits that the employee received after retirement or would get upon retirement will be given to the qualified dependent. Everyone who survived receives the same amount. |
| Medical and Dental Care | Benefits for medical and dental care are guaranteed to every worker in Brazil. It is a contributing benefit that is overseen by the medical facilities of the National Institute of Social Security (INSS), the country’s social security system. The Brazilian National Regulatory Agency (NRA), on the other hand, controls dental and medical insurance.
The minimum and typical coverage required by all Brazilian health insurance providers is likewise determined by ANS. As a result, each insurance company’s total coverage amount is nearly identical. The network of hospitals, clinics, and physicians may be the cause of the modest discrepancy. |
| Retirement | The retirement pension will be determined as 60% of the employee’s average contribution earnings plus an additional 2% for each year that the person has paid more than 15 years’ worth of social security payments (for women) or 20 years’ worth of contributions (for men). |
| Pension | Employees in Brazil have access to three primary types of pension plans, each with a unique set of requirements and benefits. The first is the INSS-managed Survivors, Retirement, and Disability Pension program, which offers payments to those who have been hurt on the job or become disabled. The second kind is the Old Age Pension, which is offered to those who have reached a specific age and have made INSS contributions for a required amount of time. The minimum monthly contribution requirements for this sort of pension are 240 for men and 180 for women, with an upper age restriction of 65 for men and 62 for women. The Special Pension, which is intended for those who have worked in risky or dangerous situations and provides benefits customised to their unique requirements, is the last option. The optimal pension plan for you or your workers will depend on several factors, so it’s crucial to speak with a skilled financial counsellor or benefits expert. |
Do you have any plans to sell in Brazil? If so, you must first appoint a remote team. The primary problem is determining whether to recruit full-time workers or contractors, even though there are many hiring businesses in Brazil that may assist you. Let’s examine the advantages and disadvantages of using full-time workers vs contractors.
If a company has a brief project in Brazil, they should use independent freelancers. It is one of the most economical ways to achieve your business development objectives. Additionally, you won’t have to deal with the headache of managing payroll, statutory payments, taxes, or employee benefits. Whatever the circumstance, you must abide by Brazilian labour laws.
It’s advisable to hire full-time workers if your plan calls for a long-term diversification effort in Brazil. Although at first it may seem expensive, it will aid in building a strong team for your business. You will have a trustworthy remote staff that will guarantee ongoing contributions to the company.
Join forces with Marzuna to obtain the best judgement on this issue. In addition to assisting you in choosing the best choice, our local specialists will build up a skilled remote team for you. You will be freed from all the pressure that comes with having employee duties and responsibilities.
Brazil’s economy, which is currently the ninth largest in the world, is growing. Additionally, it has a strong industrial sector, which attracts companies wishing to grow internationally. Brazil has a sizable pool of skilled people who can assist in the expansion of any business because more than 50% of the population is under the age of 20.
Companies may post job opportunities on popular job sites in Brazil like indeed ,buscojobs, Catho ,vagas ,and trabalhabrasil to reach this talent pool. These employment sites can have their drawbacks, though, such as the possibility of fraudulent profiles, which can have a bad effect on the recruiting procedure.
It is important to work with a reputable recruiting and management company like us to reduce these difficulties. Our knowledgeable staff oversees remote teams from more than 150 nations, including Brazil. For businesses wishing to grow in Brazil, we handle the recruiting, onboarding, and work permits for foreign nationals, assuring a simple and hassle-free employment procedure. To discover more, get in contact with our professionals right away.
In Brazil, a probationary term typically lasts 45 days. With both the employee and the employer’s approval, it can be extended to 90 days.
Certain workers are excluded from the requirement to terminate employment by giving notice under Brazilian employment contract law. These workers include union reps, expectant staff members, CIPA (Internal Committee for Accident Prevention) members, workers who have had injuries at work, and workers protected by collective bargaining agreements. Employers must be aware of the particular rules governing employee termination in Brazil in order to ensure legal compliance and prevent complications. A local payroll service can assist businesses in navigating Brazil’s complex labor rules and regulations.
| Party Initiating Termination | Notice Period |
|---|---|
| Employer | The notice time for terminating an employee’s contract is determined by the length of their work, according to Brazilian employment contract law. A 30-day notice period is required for employees with up to a year of service, and a 30-day notice period plus three additional days for each additional year of service is required for employees with more than a year of service. The maximum further notice time is nonetheless capped at 60 days. It’s crucial to remember that both the employer and the employee are subject to these notification requirements. |
| Employee | Employees in Brazil often have to give a 30-day notice period when quitting their jobs. An employee may, however, be entitled to request an early release from their job if they are still in their probationary phase and do not need to give the entire 30-day notice period. It is essential to remember that the employer has the authority to refuse this sometimes. |
| Termination under mutual consent | The notice period is split in this case. |
Marzuna EOR Solution could be able to satisfy all of your basic hiring needs. It makes the challenging task of company diversification in Brazil more easier and faster. You may tailor our worldwide automated HR platform and comprehensive dashboard to meet your specific HR solution needs. Furthermore, all of your HR procedures, employment contracts, and Brazil work visa requirements will be taken care of by our local specialists.
In compliance with Brazilian law, we will oversee the processing of your timesheets as well as your probation, termination, work permits, and benefits. You’ll have plenty of time to refine your strategies for growing your company and boosting earnings. Set up a sample right away to find out more about Marzuna Employer of Record Service.
Employees must get work visas and resident permits in order to legally work and live in Brazil. They must submit an application for this procedure to the Brazilian Consulate or Embassy in their country of residence. It’s vital to keep in mind the length of the visa application process—up to three months—and the cost of the visa—which varies by nation.
In spite of the fact that there are ten distinct types of visas available in Brazil, they may be divided into three main categories: tourist visas (VITUR), temporary visas (VITEM), which are valid for two years and can be renewed for an additional two years, and diplomatic, official, and permanent visas.
The work permit application procedure requires participation from both companies and employees. According to Brazilian employment legislation, your firm has to have a registered subsidiary there in order to obtain a work visa.
However, EOR solutions can help you sponsor work visas for Brazil without the need to set up a physical entity. For various work visa categories, our own specialists can expedite the paperwork gathering process and government approvals. To learn everything there is to know about obtaining a work visa in Brazil, contact the expert right away.
In Brazil, the payroll cycle can be either biweekly or monthly. The 15th and 30th of each month are when it is paid. Apart from this, Brazil also mandates the concept of the 13th salary. It means that employees will earn a 13th salary that is equal to 1 month’s compensation at the end of the year.
Payroll outsourcing should be used by businesses seeking for business prospects in Brazil. It will set them free from all the payroll and tax complications and formalities. Why don’t you get in touch with our professionals here for further information?
The process of establishing a subsidiary office in Brazil closely aligns with procedures in other countries. However, a thorough understanding of Brazilian laws and regulations is essential for a successful setup. The five-step process for forming a holding company in Brazil typically spans a duration of 60 to 90 days, excluding the time needed for setting up a bank account. First, it’s crucial to select the entity type that aligns with your intended business activities and growth plans. Second, you need to file your articles of incorporation with the Board of Trade, encompassing all relevant business details. The third step involves registering with the State Authority, the Municipal Authority, and the Federal Revenue Bureau. Additionally, you must establish an account with the Brazilian Central Bank. Lastly, creating a Brazilian bank account is the final step in the process. Collaborating with a trusted professional employer organization (PEO) in Brazil can help you navigate this complex process, minimize the risks of errors, and avoid potential fines. By choosing this route, you can expand your business activities in Brazil without the need to establish a full-fledged corporation.
