Hiring employees in Brazil: labor rules for foreign employers

The core rules

The Federal Constitution (art. 7) sets minimum rights that apply to every employment contract:

• Working hours: up to 8 hours a day and 44 hours a week, with compensation of hours or reduction allowed by individual or collective agreement (item XIII).
• Overtime: paid at least 50% above the normal hourly rate (item XVI).
• Vacation: annual paid vacation with an additional one third of the salary (item XVII).
• 13th salary: an extra annual salary based on full pay (item VIII).
• FGTS: the employer deposits 8% of each employee's monthly pay into a severance fund account by the 7th day of the following month (Law 8,036/1990, art. 15).
• Notice period: 30 days for employees with up to one year of service, plus 3 days per additional year, up to 90 days (Law 12,506/2011, art. 1).

An employee is any individual who provides non-occasional services to an employer, under the employer's direction and for a salary (CLT, art. 3). When these elements are present, the relationship is treated as employment regardless of the contract's name.

Unions and collective agreements

Each professional category has a union, and the collective agreements it negotiates usually set wage floors, annual adjustments and benefits such as meal vouchers and health plans. Checking the applicable agreement is one of the first steps before defining salaries and benefits.

Probation, termination and severance

• A probationary (trial) contract may last up to 90 days (CLT, art. 445, sole paragraph).
• When an employee is dismissed without cause, the employer pays notice, proportional vacation plus one third, proportional 13th salary and a fine of 40% of the FGTS deposits made during the contract (Law 8,036/1990, art. 18, § 1).
• Employees may file labor claims up to two years after the end of the contract, covering the previous five years (Federal Constitution, art. 7, XXIX).

Contractors and outsourcing

Outsourcing services to another company is allowed, but the contracting company is secondarily liable for the outsourced workers' labor obligations relating to the period of the services (Law 6,019/1974, art. 5-A, § 5). Hiring individuals as independent contractors through their own companies (the so-called "PJ" model) is a frequent source of litigation when, in practice, there is direction, regularity and pay as in employment.

Foreign staff

Foreign nationals who will work in Brazil need a residence authorization for work purposes under the Migration Law (Law 13,445/2017, art. 30). The process should start well before the intended start date.

Labor claims in the Campinas region

Labor claims are heard by the Labor Courts. The Regional Labor Court of the 15th Region (TRT-15), which covers most of the interior of São Paulo state, is based in Campinas. Our team defends employers in labor claims and helps prevent them with audits of contracts, working hours and internal policies.

Checklist before the first hire

• Register the company as an employer and set up payroll and eSocial.
• Identify the union and the collective agreement for each job category.
• Define working hours, time-keeping and the overtime or hour-bank policy.
• Prepare employment contracts and internal policies in Portuguese.
• Review contractor and outsourcing arrangements for employment risk.
• Implement the occupational health and safety programs required for the activity.

Frequently asked questions

Legal references

• Federal Constitution of Brazil
• Consolidated Labor Laws – CLT (Decree-Law 5,452/1943)
• FGTS Law (Law 8,036/1990)
• Notice Period Law (Law 12,506/2011)
• Outsourcing Law (Law 6,019/1974)
• Migration Law (Law 13,445/2017)

Links to the official text of the laws (in Portuguese). This guide is general information and does not replace advice on a specific case.

Other guides

• Setting up a company in Brazil: a practical guide for foreign investors
• Taxes for foreign companies in Brazil and the 2026–2033 tax reform