Employment Agreement Adjustments in Brazil

PTO, notice periods, bonuses, and more.

Updated on March 15th, 2023

Can we adjust the paid time off (PTO)? 

No. We need to leave PTO as per law, which is 30 calendar days per work anniversary. Any additional days need to be considered as paid license.

Can we adjust working hours?

In the employment agreement, it is specified that we do not supervise the employee's schedule because the employee is assumed to work from home. As per the new law in force since August 2022, we have a timing tracker in place for non-exempt employees.

For exempt employees, we recommend following Brazil's maximum 44-hour work week. In practice, these hours typically only apply to blue-collar employees.

Can we remove the notice period?

Brazilian law requires that employers must pay a fine if they terminate their employee with less than 30 days of notice. If you need to terminate your supported employee, Velocity Global requires 30 days of notice.

Can we remove or increase the probationary period?

We recommend against removing the probationary period in Brazil because it is common practice. However, the probationary period can be removed if the employee has previously worked with the employer or has experience in the same position. Otherwise, the probationary period is up to 90 days divided in up to two periods agreed by the parties.

Can we add commissions, bonuses or ad hoc payroll items?

Yes. Commissions are subject to taxation and descanso semanal remunerado (DSR), which is a weekly remunerated rest period. Bonuses are also subject to taxation. Please note that if bonuses or commissions are variable, they must be formalized through our Variable Compensation Agreement. If you have questions about this process, reach out via the Help widget at the bottom of the page.

How can we offer equity or stocks to our supported employees?

In Brazil, we offer you the option of issuing equity as either “nonemployee” or “employee” grants. We do not facilitate withholding and payroll reporting unless the award is cash settled. 

How can we offer equity without signing a direct agreement with our supported employee?

We require you to directly issue the grant notice (i.e., side agreement) to your supported employee. This side agreement should not include any language that indicates a direct employer or employee relationship between you and your supported employee.