Brazilian law stipulates notice periods for both employers and employees during the termination of employment contracts. The specific duration depends on several factors.

Minimum Notice Periods

The Consolidation of Labor Laws (CLT) establishes the minimum notice periods:

• 30 days: This applies to employees with less than one year of service or who are paid weekly.
• Increased by 3 days per year: After the first year, the notice period increases by 3 days for every additional year of employment, capped at a maximum.

For instance, an employee who has worked for a company for 5 years would be entitled to a minimum notice period of 30 days + (3 days/year * 4 years) = 42 days.

Exceptions to Minimum Notice Periods

• Termination for Cause: No notice period is required if the employer terminates the employee for just cause, such as serious misconduct.
• Mutual Agreement: Both parties can agree to shorten the notice period.

Employer's Options During Notice Period

• Employee Works Notice Period: The employee can continue working during the notice period and receive their regular salary and benefits. However, they have the right to a reduced workday by two hours or not work during the last week.
• Payment in Lieu of Notice: The employer can choose to pay the employee a financial compensation equivalent to their salary for the notice period, effectively waiving the requirement to work.

Employee's Obligations During Notice Period

• Employee Resignation: Employees generally must provide a minimum of 30 days' written notice when resigning.
• Failure to Provide Notice: If the employee fails to provide the required notice period without a valid reason, the employer can deduct an amount equivalent to their wages for the missing notice period from their final paycheck.

Please note that collective bargaining agreements may establish different notice period requirements for specific industries or occupations.

In Brazil, the Consolidation of Labor Laws (CLT) and the Brazilian Severance Indemnity Fund (FGTS) system primarily govern severance pay entitlements for workers upon termination of their employment.

Dismissal Without Cause

When an employer dismisses an employee without just cause, the employee is entitled to accrued salary and benefits, which include unused vacation time, 13th-month salary (proportional), and any outstanding wages. Additionally, the employee is entitled to a FGTS fine, a financial penalty equal to 40% of the total FGTS balance accumulated throughout the employee's tenure (CLT, Art. 18).

The Brazilian Severance Indemnity Fund (FGTS)

Every month, employers are required to deposit 8% of the employee's gross salary into an individual FGTS account managed by the government (Caixa Econômica Federal). Employees can withdraw their FGTS funds under specific circumstances such as dismissal without just cause, expiration of a fixed-term contract, retirement, purchase of a primary residence, and certain critical illnesses.

Additional Severance Entitlements

Upon mutual termination, employees receive the same entitlements, except the FGTS fine is reduced to 20% (CLT, Art. 18). Employees terminated for just cause generally forfeit severance pay, except for accrued salary and benefits.

Important Notes

Collective Bargaining Agreements may provide additional severance benefits beyond the legal minimums. Severance packages may be subject to certain limitations as outlined in the law.

Brazilian labor laws provide a specific framework for terminating employment contracts. The process is divided into the main types of termination: Termination by the Employee (Resignation), Termination by the Employer, Termination Without Cause, Termination With Cause (Justa Causa), and Termination by Mutual Agreement.

Termination by the Employee (Resignation)

When an employee decides to resign, they must provide a written notice. The employer's obligations include settling all outstanding pay, including accrued vacation and proportional 13th-month salary, releasing the employee's FGTS balance for withdrawal, and updating the employee's work card (Carteira de Trabalho).

Termination by the Employer

Termination Without Cause

In case of termination without cause, the employer must provide a notice period or offer payment in lieu of notice. The termination must be communicated in writing, stating the termination date. The employer must pay notice period compensation (if not worked), accrued salary and benefits, FGTS balance, and FGTS penalty of 40%.

Termination With Cause (Justa Causa)

Brazilian law recognizes specific acts of serious misconduct as grounds for immediate termination, including dishonesty, habitual intoxication, insubordination, etc. The employee is not entitled to notice periods or the FGTS fine but must receive accrued salary and benefits. The employer must thoroughly document the grounds for termination with sufficient evidence to support the allegations.

Termination by Mutual Agreement

Both parties can agree to end the employment relationship under mutually agreed terms. This usually involves a 20% FGTS fine instead of 40%.

Procedures & Documentation

All terminations must be provided in writing, signed, and dated by the terminating party. In some cases, the termination agreement must be formalized at a union or the Ministry of Labor (this process is called homologation). The employer must register the termination in the employee's work card (Carteira de Trabalho).

Brazilian labor law can be complex, and specific situations or collective agreements may require additional steps or considerations.