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Commentary

9.3 Termination and severance system

Brazil

The labour contract may be terminated in five different forms, which can reflect in the severance payment:

  1. Ìý

    •ÌýÌýÌýÌý dismissal with cause

  2. Ìý

    •ÌýÌýÌýÌý dismissal without cause

  3. Ìý

    •ÌýÌýÌýÌý resignation without cause

  4. Ìý

    •ÌýÌýÌýÌý resignation with cause

  5. Ìý

    •ÌýÌýÌýÌý mutual agreement

Possibilities for dismissal or resignation with a cause are exhaustively set forth in the CLT and, except under such conditions, the contract must be terminated without cause. Mutual agreement is a new form for labour contracts to be terminated and must be a result of good faith and real mutual intention.

The manner of termination directly affects the severance pay, as explained below:

Dismissal with causeDismissal without causeResignation without causeResignation with causeMutual agreement
Prior noticeüüüIn half
Balance worked daysüüüüü
13th salary proportional*üüüü
Overdue 13th salary*üüüüü
Proportional vacation + 1/3 bonus*üüüü
Overdue vacation + 1/3*üüüüü
Fine

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Web page updated on 17 Mar 2025 14:12