Employment Agreement Options in Brazil

Types, seniority, noncompetes, and more.

Updated on March 20th, 2023

Can we add company-specific information to the agreement? What is the legal process?  

We do not include the client’s name in agreements in Brazil, but reference the “Cliente” generically as a recipient of the services. 

What are the types of employment agreements we can offer? (e.g., fixed-term, indefinite, project-based)

Most contracts in Brazil are indefinite. Velocity Global does not usually offer hourly contracts in Brazil. 

Fixed-term contracts, which are less commonly offered, must be signed by all parties and can be extended for a maximum of two years if the following requirements are met:

  • The agreement relates to the performance of the job justifying the establishment of a definite term (including a temporary job); or
  • The agreement is for temporary business activities; or
  • Probationary contracts, with a maximum term of 90 days.

Fixed-term contracts can be renewed only once. After the renewal period is complete, the employment contract becomes permanent unless you terminate your supported employee. 

If you terminate a fixed-term contract early, you will be responsible for paying your supported employee 50% of all remaining wages. As a result, Velocity Global strongly recommends against using fixed-term contracts in Brazil except in the case of very temporary projects.

According to Velocity Global Brazil's corporate purpose, we are unable to provide "temporary workforce services'. Temporary workforce (which differs from fixed-term contracts) refers to temporary contracts intended to fill temporary positions due to maternity or sick leave, or other similar reasons.

Part-time Salaried Contracts

We can offer part-time contracts to your supported employees working a maximum of 30 hours per week with no possibility of overtime, or 26 hours per week with no more than six hours of overtime. Part-time employees must receive pay proportional to the pay received by full-time employees in the same role. 

Part-time Fixed-Term Contracts

Velocity Global does not offer part-time fixed-term contracts in Brazil. 

Can we recognize seniority in Brazil?

We cannot honor seniority for any country in the Latin America region, including Brazil.

Can we include benefits in the employment contract?

Yes, benefits can be included in the employment agreement.

Can we add variable compensation to the employment agreement? 

We do not recommend including variable compensation language in the employment agreement. However, it can be included through a separate Variable Compensation Agreement. Please submit a ticket using the Help widget at the bottom of the page to reach out to discuss a separate Variable Compensation Agreement.