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Brazil is the largest country in both South America and Latin America. At 8.5 million square kilometers and with over 211 million people, Brazil is the world's fifth-largest country by area and the sixth most populous.
It is the largest country to have Portuguese as an official language and the only one in America. It is also one of the most multicultural and ethnically diverse nations with a variety of talented people in different industries. Trust me you have to hire people from here.
In Brazil, onboarding talented workers can be a challenge if you’re not sure how to reach them. Before you decide to hire a remote Brazilian employee, it is necessary to understand how employment is structured, as the laws of Brazil will control the relationship. This includes the use of contracts, employee entitlements and the role of labor unions.
As a general rule, when a Brazilian national is hired abroad to work in a foreign country their employment contract is governed by the rules applicable in the country where the services will be provided.
However, Brazilian labour law must apply, if it is more favourable to the employee, when:
The Brazilian Social Security Law and the FGTS also apply in those cases.
Brazil’s Government Gazette published the Provisional Measure #1091 issued on December 30, 2021 which defines the new value of the minimum wage per month, starting on January 1, 2022 at $217,18 dollars.
According to this document, the value of the minimum wage per day will rise to $7,23 dollars and per hour to $0,98 cents.
How many hours do they work?
A full-time workweek is 44 hours or 8 hours per day and a one hour’s rest period is required for employees who work more than 6 hours per day. Employees are also entitled to a paid weekly rest period, preferably on Sundays.
Yes, the overtime is limited.
Overtime is limited to up to 2 hours per day. Any hours worked in excess of 8 per day is considered overtime and is paid at the rate of 150% of the regular pay.
Employment contracts are not required but are commonly used and should be drafted in Portuguese. If a probationary period is used it is limited to 90 days.
Employee entitlements in Brazil are fairly generous, and could exceed the benefits that you are used to paying in other countries:
Usually employing in Brazil requires you to own a legal entity in the country to manage payroll, tax, benefits, and compliance through their own in-country resources, of course.
The employment regulations in Brazil can make full compliance with employment laws an overwhelming process and if you want to employ workers in Brazil legally without an entity, you need the help of a global employment solutions provider, like Ontop.
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