How can I hire an employee in Brazil?

3 minutes reading

eduardo SEO Specialist and content production, I have worked in several renowned companies in Brazil and abroad. I write about money, technology and more!

Hiring in Brazil can be an enriching experience to increase cultural diversity and innovation for problem-solving. After all, foreign employees are the base to build multidisciplinary teams.

With knowledge of the international market, they give more insights to help your business grow. As the 7th largest economy in the world, Brazil has many talents with full potential to bring brand new perspectives.

However, hiring international talents is not so simple. Unless you know how Brazilian legislation works. It also includes documentation review, visa, and travel costs (if needed). Thanks to technological advancements, there is the option for remote employees too.

Depending on the job requirements, it’s a huge plus and less costly. Whether you go with the first or second option, you should learn about the labor laws.

By being here, you just made the first move. Throughout this article, you will find what you need to know about hiring in Brazil. Are you ready to learn how to attract Brazilian talents to your company? Check out your next steps!

What do you need to know about hiring in Brazil?

Knowledge about Brazilian labor laws is crucial before hiring remote employees. There are some details to take into account. After all, Brazil has a very detailed employment law system.

It includes different types of contracts, employee entitlements, and collective bargaining. All the employees are registered, following tax authorities based on the contract with the company. Here are a few of them:

  • CLT: the most common bond with an employer, when the employee works on the books, following the Consolidation of Labor Laws;
  • Self-employed: freelancers and independent contractors, providing services to one or more customers and companies;
  • Intern: employees who are still studying and are hired as part-time workers;
  • Trainee: it applies to recent graduates who enter the job market, experiencing more than one area in a company to have an overview

For non-remote positions — on a temporary or permanent basis — you must request a work permit for your new employee from the General Coordination of Immigration. It usually takes within 45 days to receive an answer.

If your company is established in one of the Mercosur countries, there is no need to accomplish this stage. Other nationalities need to get it before moving on to the next step.

Then fill in the Work Permit Application Form, signed and forwarded by a legal representative, along with other documents. After entering the country, the employee has about 90 days to prove registration in the PIS/PASEP and CPF/MF.

Highlights of employment in Brazil

The main point to pay attention to is the Consolidation of Labor Laws (Consolidação das Leis Trabalhistas), also known as CLT. Most of the employees fall into CLT, which keeps detailed records. Job position, payroll information, salary, benefits, and social security contributions are recorded.

Everyone — including foreign workers — holds a work record booklet with this data. To expand your knowledge about hiring in Brazil, let’s learn the mandatory standards foreseen by the CLT:

  • Minimum wage: it represents the minimum amount for all Brazilian employees, which is adjusted annually and can add collective labor agreements;
  • Work hours: the standard is eight hours per day or 44 hours per week. In general, overtime demands an additional 50% of the regular rate and a special permit to work on Sundays, plus an additional of 100%;
  • Paid vacation: all CLT employees can take a 30-day vacation with a bonus (⅓ of the salary) after one full year. This period can be divided into three, with a minimum number of days in a sequence;
  • 13th salary or Christmas Bonus: an extra salary by the end of each year;
  • Profit-sharing: a percentage of the company’s profit is shared with the employee;
  • Social Security contribution: compulsory payments to the National Institute of Social Security. In return, the employee will receive a future social benefit;
  • FGTS: The Federal Severance Pay Fund (Fundo de Garantia por Tempo de Serviço) works like a fund managed by a bank to support unfair dismissals.

Collective bargaining

Those are the standards of CLT. Other entitlements also include employee benefits based on collective bargaining agreements. They can increase the income and may vary from one company to another.

Maternity, paternity, and wedding license are some common examples. Mothers can receive up to 120 days off, while fathers can enjoy five paid days off. Employees getting married can take three days.

The benefits also include transportation and meal vouchers, besides health care (with or without co-payment). If the workers are sick, some companies give them a few days off and keep the payment. Plus, it’s essential to follow Brazilian holidays, because some of them are paid while the employee is dismissed and usually can rest a bit. Main holidays include New Year’s Day, Carnival, Corpus Christi, Independence Day, and Christmas.

Lastly, termination requires a 30-day notice for both sides — you as the contractor and the employee as the contracted. If no dismissal notice is given, the employer is obligated to pay a full 30-day salary, while the employee receives a penalty.

How can you pay your Brazilian employees?

If you are hiring in Brazil, you have Husky to cover your back. We are a digital currency exchange platform, and we are ready to receive any international transfer.

Did you know you can make multiple payments at once? Whether it’s a single payment or batches, with Husky, you don’t need to keep it manual and send remittance files to different banks. All can be done within our app, achieving scale and efficiency while reducing the chances for errors or delays.

If you’re looking to expand your business, Husky can help you with the payments to Brazil. This way, you can focus on understanding the labor laws better.

After all, hiring in Brazil can offer cultural enrichment, innovation while developing ideas, and a new perspective to solve problems. International teams can also bring opportunities in the international market, not to mention your business image improvement on the global stage.

Many international companies and entrepreneurs already count on Husky to send batch payments after hiring in Brazil. So join them to make your life easier!

eduardo SEO Specialist and content production, I have worked in several renowned companies in Brazil and abroad. I write about money, technology and more!

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