Brazil labor laws clarify severance and dismissal rights

In Brazil, labor regulations define specific rights for employees during contract terminations. Under Article 484-A of the CLT, a mutual agreement dismissal allows workers to withdraw up to 80% of their FGTS balance and receive 50% of the notice period pay and the FGTS penalty. However, this model does not grant access to unemployment insurance.

Regarding voluntary dismissal plans (PDV), the Superior Labor Court (TST) has ruled that employees may join such programs even during an indemnified notice period. The court's 6th Chamber recently upheld this stance, noting that the notice period is legally considered part of the employment contract. This decision ensures that workers whose contracts are still technically in effect due to notice projections can access benefits offered by company-wide voluntary resignation programs.