In Brazil, Employer of Record (EOR) services help companies manage hiring. They ensure compliance with the country’s detailed CLT labor rules, payroll obligations, and statutory benefits. A modern EOR covers the full employment management workflow. This includes drafting compliant contracts in Portuguese, executing payroll, managing social security contributions, and supporting HR administration.

If you don't want to set up a local entity, G-P EOR provides the fastest path. It eliminates entity setup and reduces the operational burden of local registrations. Conversely, setting up a Brazilian entity provides direct control. However, this path demands significant time, capital investment, and continuous compliance tracking.

The right EOR helps companies scale their global workforce in Brazil with less risk. It's a strategy that keeps internal teams focused on core business priorities

Hiring in Brazil with an EOR

Navigating Brazil's strict tax and legal obligations demands deep local expertise that many businesses find complex. The Consolidação das Leis do Trabalho (CLT) protects talent through rigid regulations, creating operational friction for expanding businesses. G-P EOR eliminates this complexity for your business by acting as the legal employer. When you negotiate terms, you must agree on a gross salary in Brazilian Reais (BRL). Our platform manages these critical compliance factors:

Managing these complex CLT mandates independently invites severe financial and legal risk. The G-P Global Employment Platform automates onboarding, payroll execution, and benefit administration across Brazil. We combine automated compliance technology with the industry's largest team of in-country legal experts. This protection keeps your internal teams focused entirely on market capture.

Employment contracts in Brazil

Best practice is to implement a strong, written employment contract in Portuguese, detailing all terms of employment, including compensation, benefits, and termination requirements.

An offer letter and employment contract should always state the salary and any compensation amounts in BRL. This ensures compliance with Brazilian legal requirements. Employers must formally register the employment relationship in Brazil's eSocial system, which populates the employee's digital labor card (Carteira de Trabalho e Previdência Social - CTPS Digital). This registration includes key details such as hire date, position, salary, and contract duration.

Probation period in Brazil

A probationary period can be set for a maximum of 90 days, often structured as an initial 45-day period with a 45-day extension. At the end of the probationary period, the contract can be terminated with reduced severance costs.

Brazil non-compete agreements

While not explicitly regulated by labor law, non-compete clauses are enforceable if they meet court-established criteria: a limited timeframe (typically up to two years), a geographic scope limited to Brazil, a scope strictly related to the employee's activities, and, most importantly, financial compensation to the employee for the entire non-compete period, separate from their regular salary.

Working hours in Brazil

The standard workweek in Brazil is up to 44 hours, typically structured as an 8-hour day with a mandatory lunch break of at least 1 hour, which is not counted as part of the workday. Adhering to these limits is critical to avoid overtime claims.

Leave and holidays in Brazil

Brazil public holidays

Brazil observes numerous public holidays at the federal, state, and municipal levels. National public holidays include:

While not official federal holidays, Carnival and Corpus Christi are widely observed and typically treated as non-working days.

Annual leave (vacation)

Companies must be careful to comply with local labor laws regarding vacation time. After 12 months of service, employees are entitled to 30 calendar days of paid vacation. This vacation can be taken in a single period or split into up to 3 periods, with one period being at least 14 days and the others at least 5 days each. Employees must also receive a vacation bonus equivalent to 1/3 of their monthly salary.

Sick leave

If an employee provides a valid medical certificate, the employer is responsible for paying their salary for the first 15 days of absence. For absences exceeding 15 days due to the same illness, the employee receives sickness benefits directly from the National Institute of Social Security (INSS) for the duration of the medically certified incapacity.

Maternity and paternity leave

  • Paternity leave: Non-birthing parents are entitled to 5 days of paid leave until the end of 2026. Gradual increase as of 2027, as follows:
    • 10 days starting January 1, 2027.
    • 15 days starting January 1, 2028.
    • 20 days starting January 1, 2029.
    • Note: The leave period is increased by 1/3 (one-third) in cases involving the birth or adoption of a child or adolescent with a disability.

Compensation and benefits in Brazil

13th-month salary

In Brazil a 13th-month salary is a mandatory annual bonus equivalent to one month's pay. It is typically paid in two installments: the first by November 30 and the second by December 20. It is crucial to clarify during negotiations whether a salary offer is inclusive or exclusive of this bonus.

Mandatory and common benefits in Brazil

Navigating Brazil’s employee benefits requires distinguishing between what is legally required, mandated by a CBA, or considered a market standard. An EOR ensures compliance with all applicable requirements.

Payroll and taxes in Brazil

Brazil social security contributions

Payroll in Brazil includes several mandatory contributions:

Termination and severance in Brazil

Terminating an employment contract in Brazil is complex and must follow strict procedures. For a termination without cause, the employer must provide a notice period (aviso prévio) of 30 days. This notice period increases by 3 days for each year of service, up to a maximum of 90 days total. Only 30 days can be worked; any additional days must be paid as indemnity.

The final severance payment for a termination without cause includes:

Employee transfers in Brazil

Under the principle of 'succession of employers', employment contracts are automatically preserved during a merger or acquisition. However, transferring an employee from one unaffiliated company to another is not permitted and requires a formal termination and re-hire.

An EOR simplifies workforce management, as the employment relationship remains with G-P, allowing for seamless support of your company's evolving needs without altering the legal employment status.

Why G-P?

G-P EOR is the award-winning, AI-powered SaaS platform that empowers ambitious companies to build global teams. Onboard, manage, and pay top talent in over 180 countries in minutes, bypassing the typical time, cost, and complexity of local entity setup. G-P EOR is the preferred partner for leading HCM, PEO, and payroll platforms. Bring your workforce data together in one place to maintain existing workflows while guaranteeing consistent and accurate data across your integrated systems.

Request a proposal today to learn more.