Brazil Hiring/Employment Compliance
Brazil’s employment laws favor employees, and it is common to face litigation from former employees after termination. Therefore, Brazil employment compliance hinges on a strong employment contract and a thorough understanding of the country’s laws.
How to Hire Brazil Employees
Because the native language in Brazil is Portuguese, you will either need to learn the language yourself or hire a translator to help hire Brazilian employees and draft employment documents. You also need to verbally agree on a gross salary amount in the native currency with your candidate. At this time, you should give them a physical copy of an offer letter and employment contract.
As an employer, expect to spend a significant amount of time, money, and travel to hire employees in Brazil. You need to negotiate salary and fully understand the country’s tax, payroll, and employment compliance laws before onboarding any employees.
Brazil Employment Compliance
Brazilian laws dictate a standard of 44 working hours per week. Employees typically work eight hours a day with a one-hour lunch break during the week and four hours on Saturday. Other employers opt to have longer work days during the week instead of working on Saturday.
Overtime is one common source of litigation in Brazil. It is best to agree on a contract that stipulates overtime to avoid costly court fees.
Employees also get vacation, sick, maternity, and paternity leave in Brazil:
- Vacation leave: Thirty calendar days each year after working for 12 months
- Sick leave: Fifteen paid days with a medical note
- Maternity leave: Four months of paid leave
- Paternity leave: Five paid days off
How to Onboard Employees in Brazil
After establishing a subsidiary and hiring employees in Brazil, you need to understand how to onboard them.
While no specific laws for onboarding are in place, the best way to onboard employees is to outline your expectations early on. Send an email with an itinerary for their first week and review areas such as dress code, working hours, and your company’s code of conduct.
Benefits of Brazil Hiring Outsourcing
If you do not follow Brazil employment compliance laws, you could face costly litigation and Brazilian courts that often side with the employee. Outsourcing your hiring takes the stress out of staying liable.
Working with a global PEO such as Globalization Partners is an easy way to hire employees and take the liability off your shoulders. Our services include recruiting, payroll, handling benefits, and acting as the employer of record.
You do not have to wait to get your subsidiary off the ground to hire employees and start your business — we hire employees on your behalf and handle all compliance issues to make your job easier. Contact us today to learn more about expanding your business in Brazil.