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After the Labor Reform came into effect in 2017, three special hiring regimes became valid in Brazil, which may vary according to demand and the needs of employers.
In Brazil, the hiring of temporary workers at the end of the year to handle the increase in sales in commerce and the movement in the service sector is expected to be the highest in the last six years, according to a survey conducted by the National Confederation of Commerce of Goods, Services and Tourism (CNC). Learn about the Digital Employment Card (CTPS) and find out how to access it.
Continue reading to understand the three types of contracts in force in Brazil since the Labor Reform came into effect in 2017.
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Temporary Work
The employee must be hired by a temporary work company, which makes them available to a client company. The duration of the contract may not exceed 180 consecutive days and can be extended for an additional 90 days, only once.
The law guarantees a salary equivalent to that of employees in the same category of the company, calculated on an hourly basis. The amount cannot be lower than the regional minimum wage (minimum applicable in the state).
Additionally, the worker is entitled to proportional vacation pay, Severance Indemnity Fund (FGTS), contributions to receive benefits and services from Social Security (INSS), and workers’ compensation insurance. They do not receive, as provided by law, the 40% severance penalty in case of dismissal without just cause.
The work schedule is a maximum of eight hours per day, and it may exceed this duration if the client company uses a specific work schedule. Hours that exceed the normal work schedule are compensated with an increase of at least 50%. When working at night, the increase is at least 20% of their pay.
The client company is subsidiarily responsible for labor obligations related to the period during which temporary work is performed.
Intermittent Work
Before the Labor Reform came into effect, there was no legal provision for the hiring of intermittent workers in Brazil, although this modality already existed in other countries, such as the United States and the United Kingdom.
This model is generally used for hiring employees in the service sector—especially in restaurants—and in activities where demand varies according to days and hours.
According to the law, the intermittent worker is hired with a formal contract, but their pay is proportional to the actual time worked, receiving a salary by the hour or for each day they are called in.
The worker is also entitled to proportional vacation, FGTS, contributions to INSS, and 13th salary. The contract must establish the hourly rate, which cannot be lower than the minimum wage per hour or the pay of other colleagues performing the same function.
The employee must be called at least three days in advance and can refuse the call. Periods when the employee is not providing services are not considered time at the disposal of the employer, allowing them to take on work with other employers if they wish. During periods of inactivity, they may provide services to other contractors.
Part-Time Work
The employee under a part-time contract is any salaried worker whose activity lasts less than that of employees with a full-time workload of 44 hours per week or 220 hours per month.
There are two forms of hiring. The first establishes a schedule of up to 30 hours per week, with no possibility of overtime.
The other allows for a work schedule of 26 hours per week, with the possibility of six hours of overtime, with an additional 50% on the normal salary. Overtime can be compensated in the following week or must be paid on the payroll.
Part-time employees have the same rights as any formally hired employee, such as vacation, 13th salary, FGTS, contributions to INSS, paid weekly rest, notice, and additional benefits.
Vacation will be granted in the same way as for full-time employees working 44 hours per week, meaning in periods ranging from 12 to 30 days (depending on the number of absences of the employee). The labor reform in Brazil also provides that employees under this regime have the right to convert 1/3 of their vacation into monetary compensation.
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