1. Core content of Labour law



The Brazilian government has formulated strict and meticulous labor laws and regulations to protect workers' rights and interests. If an enterprise makes any mistake, it will fall into labor disputes or be subject to administrative penalties, thus incurring unnecessary losses. The Uniform Labour Law, enacted in 1943, is the first systematic Labour law in Brazil. Although it has been amended continuously since then, it still forms the basis of Brazilian Labour policy.



[Labor Rights]



(1) Labour registration: Any remunerated employment shall be subject to Labour registration. There are two forms of Labour registration: the Carteira DE Trabalho e Previdencia Social (" Labour Permit ") for workers; Livro DE Registro deEmpregos (Livro DE Registro deEmpregos). Both the "Labour Permit" and the "Registration of Employees" are issued and administered by the Brazilian Ministry of Labour or its authorizing agency. When employing workers, enterprises shall indicate wages, working conditions, etc., in the "Labour Certificate" and the "Employee Registration Form".



(2) Labor contract: A labor contract shall be signed between the enterprise and the workers, clearly specifying wages, types of work, working hours, etc. There are two forms of labor contracts: individual labor contracts and collective labor contracts. "Individual Labour contracts" are signed directly by the enterprise and the workers, and "collective Labour contracts" are signed by the trade union on behalf of the workers and the enterprise. Termination of individual Labour contract: in the case of illness, the terms of the worker's performance of services are suspended, but the INSS and THE Seniority Guarantee Fund (FGTS) are retained, and the worker shall be considered for reinsertion within 5 years. If the labor contract is suspended due to military service or other civil obligations, the enterprise shall reserve jobs for them.



Termination of individual labor Contract: Both the employer and the employee may terminate the contract, provided that a termination document is signed and 30 days' notice is given to the other party. Within 30 days of notice of dismissal, workers may work only half a day or go out to look for work for another half day. Union leadership members and enterprise Safety committee members may not be dismissed during their term of office and within one year after the end of their term of office, nor may they be dismissed within one year after the occurrence of an industrial accident or during the treatment of an industrial injury. In the event of justifiable dismissal, the employer shall pay the balance of his/her wages, and the INSS and Seniority Guarantee Fund (FGTS) originally paid shall remain in place. In the event of a layoff for no good reason (that is, for any reason not related to the employee), the company is required to give an additional 40 per cent of this amount. Workers can only be fired if they are absent from work for more than a month in a row. When an employee resigns voluntarily, the employer must pay the balance of the salary and part of the vacation salary and all kinds of allowances due.



Change of collective labor contract: discussion between labor union and enterprise on behalf of labor.



(3) Working hours: According to the Labour Code, "normal working hours" are 8 hours per day, 44 hours per week and 6 hours per shift. For overtime work other than "normal working hours", the remuneration shall be 150% of the hourly wage of "normal working hours"; For night work (22:00-5:00 the next day), 120% for day work; Holiday work is paid 200% of normal work.



In addition, the Brazilian Labor Law also provides for strict working breaks, such as during 4-6 hours of continuous work, workers should have a 15-minute break; For work of more than 6 consecutive hours, the laborer shall have 1-2 hours' rest or meal time, etc. An enterprise may adjust the working hours of its employees according to the needs of production and business, and this arrangement is applicable to all types of labor contracts. For example, the enterprise can shorten the normal working hours in the off-season but not reduce the wage, the remaining working hours of the enterprise can be arranged in the busy season staff overtime. The adjustment period shall not exceed 120 days, except as otherwise provided in the collective bargaining agreement. If the system starts in the peak season, the company can extend the working hours of its employees (no more than two hours a day). During this period, the company does not pay overtime, and the overtime hours are offset by later vacations. The working hours may be adjusted according to the arrangement of the collective bargaining agreement, but the working hours per day shall not exceed 10 hours, and the total working hours per week shall not exceed the maximum limit set by law within 120 days.



And overtime compensation must be happened during the contract period, that is to say, if at the termination of the contract (no matter what the form of the contract), overtime is not fully compensated, the labor time worker shall have the right to require the enterprise to pay wages and work overtime expenses stipulated in labor agreement, in any case work overtime charges shall not be less than 50% of the normal hourly wage.



(4) Wages: Labor wages are paid monthly in real. The wages of workers shall not be lower than the statutory minimum wage. Since 2011 the federal government has introduced a minimum wage of R $545 a month and has set a policy of regular increases from 2011 to 2023. Employers and workers in an industry may agree on a minimum wage for their own industry in addition to observing the government minimum wage. In commission, tips, pieces of work, contract and other forms of remuneration, the monthly income of the labor shall not be lower than the minimum wage. At least 30 per cent of the minimum wage should be paid in currency. The minimum wage for juvenile apprentices is half of the statutory minimum wage in the first half of the apprenticeship and two-thirds of the statutory minimum wage in the second half of the apprenticeship. Workers get a month's extra pay after 12 months of service. Without good reason to fire a worker, the employer must continue to pay one month's wages.



(5) Annual leave: In addition to statutory holidays, workers are entitled to 30 days of paid leave each year (but the number of days of leave is reduced according to the number of absence from work). If the worker does not take annual leave, the enterprise must give financial compensation.



(6) Occupational safety and health: The enterprise shall provide workers with a safe and healthy working environment and shall be subject to regular inspection by the local labor office.



(7) Protection of women and underage workers (14-18 years old) : In addition to enjoying general labor rights and interests, women and underage workers are given special protection. Special provisions are made in the Labor Law on employment conditions, overtime hours, night work, working environment and other aspects. For example, children aged 14-16 can only work as apprentices, while children aged 16-18 must have their parents sign a Labour contract and must not work in dangerous, hazardous or night work. The employer shall guarantee the steady employment of the pregnant woman during her pregnancy and up to 5 months after childbirth. Pregnant women are entitled to 28 days of leave before delivery and 92 days of maternity leave after delivery, without any reduction in wages by the employer.



(8) Probation period: Both parties shall sign a probation agreement. Generally speaking, the probation period for labor is 45 days, which can be extended once (45 days). Before probation, workers should undergo a medical examination. During the probationary period, companies and workers are not required to pay such fees as the Age Protection Fund (FGTS).



(9) Other rights of workers: Family allowance (Salario Familiar); Fgts-fundode Garantia do Tempo DE Servico (similar to seniority subsidy); Social Security benefits (INSS or CINSS).







[Types of Labor Contracts]



(1) Temporary labor contract: Temporary labor refers to the short-term labor service provided by nature for the enterprise to temporarily replace the work of regular employees of the enterprise, or to meet the demand of increased workload of the enterprise in a short period of time. The term of employment shall be decided by the employer, and may be extended once upon expiration, but the extended term shall not exceed the term of employment agreed upon in the previous contract. Temporary employees enjoy the following rights: (1) can get the same remuneration as the employees of the same type of work within the enterprise, by the hour, to ensure the local minimum wage; An 8-hour working system, no more than 2 hours of overtime, overtime pay per hour plus 20% of the normal wage; (3) vacation time shall be provided according to a certain proportion of the working days; (4) Weekly paid holidays; Extra pay for night shift; Compensation for termination of the contract or expiration of the contract without good reason shall be calculated on the basis of 1/12 of the salary already paid; The social security funds to be paid by enterprises stipulated in the Social Security Law; Temporary employment is documented in the Labour and social welfare manual (CTPS).



(2) Fixed-term labor contracts: refer to labor contracts that stipulate the starting time and termination time in advance, and generally the maximum term is two years. After the expiration of the term of a fixed-term labor contract, the enterprise shall wait for six months before signing a new fixed contract with the same employee; Otherwise, the contract will be regarded as an irregular labor contract. The rights of permanent staff: The staff shall be entitled to the 13th monthly salary, which shall be calculated according to 1/12 of the monthly salary; Enjoy the same vacation as the irregular labor contract. An irregular contract is usually a short-term or medium-term labor contract. Upon the termination of the contract, the employee can enjoy a certain proportion of the number of working days, plus one third of the vacation. Temporary safeguards shall be applied to pregnant female employees, representatives of trade unions and their agents, members of the Accident Prevention Committee (CIPA), and employees who have suffered work-related accidents. The safeguards shall terminate upon expiration of the contract; (4) according to the provisions of the new labor law, retirement pension to regular labor contract under the working hours for the basis of calculation, while ensuring other social welfare; Age protection Fund (FGTS) is calculated at 8% of monthly salary.



(3) Irregular labor contract: Irregular labor contract is one of the commonly used employment contracts of enterprises. It is also applicable to the continuous signing of a fixed-term labor contract, there is no six-month interval between the case. Employees' rights under irregular labor contracts: (1) minimum wage; The average working hours per week do not exceed 44 hours; Wages shall not be arbitrarily reduced; Unemployment insurance; The thirteenth month's salary; Profit distribution; Overtime pay; Annual paid holidays; Pet-name ruby maternity leave; No paternity leave for my father; Notice of termination of labor contract; Retirement pension; Work-related injury insurance; Security fund for seniority; Temporary safeguards for members of the Accident Prevention Board (CIPA), staff who have suffered work-related accidents, and pregnant female staff.







2. Risks of foreigners working in the local area



The introduction of Labour has been discouraged in Brazil, where employment has been under pressure. In terms of attracting foreign investment, the competent authorities of the Brazilian government regard whether the investment projects can provide jobs for local people as an important basis for approval.





The Brazilian Labor Law stipulates that the number and wage income of domestic workers shall not be less than 2/3 of the total number of workers and total wages in the enterprise. Foreign workers must have special technical expertise and a work visa to work in A Brazilian enterprise. The Brazilian Government stipulates that all enterprises may employ foreigners to work in Brazil for a short period of time. However, when processing the application, the immigration Department of the Brazilian Department of Labor, as the competent authority, has the following approval principles:



[Qualification] Foreign workers must have professional skills and at least two years of professional work experience (those with advanced education), or at least three years of work experience if they are professionals with medium education.



[Quantity limitation] The number of foreign laborers shall not exceed one third of the number of employees of the enterprise, and if the number of foreign laborers is less than one third, their wages shall not exceed one third of the total wages of the enterprise. Under Brazilian law, companies are allowed to hire a higher proportion of foreign workers only when there are not enough professionals available at home.



Brazil's government in the introduction of labor, labor immigration from employers to Brazil for foreign workers to apply for a work permit, the submission of application should include: application form (fixed format), foreign workers resume and authenticated by the notary diploma, employers the relevant data, articles of association of the company and all of the modified files, as well as the last time before the filing of income tax and social security (INSS), length of service of security funds (FGTS) pay proof, service contracts (fixed format, sign by employers and foreign labor), fees paid proof.



When applying for a work visa, foreign workers are required to submit proof of health status, proof of non-criminal status, proof of residence in the country of origin and proof of birth and marriage status. These materials need notarization and consular authentication. The Immigration Office of the Brazilian Labor Department will notify the Ministry of Foreign Affairs of Brazil after the examination and approval of the work permit. The Ministry will inform its embassies and consulates abroad that the work visa of foreign workers is issued by the Embassies and consulates of Brazil.



Trade unions are powerful in Brazil, and labor disputes are generally settled mainly through local unions. If the union is unable to solve the problem, it may resort to judicial means to the Labour court for adjudication.