Labor laws regarding dismissal for cause in Brazil

Under Article 482 of the Consolidation of Labor Laws (CLT) in Brazil, dismissal for cause represents the most severe penalty an employer can impose on an employee. Unlike standard dismissals, a dismissal for cause requires a specific justification at the time of termination.

When terminated for cause, employees lose several rights, including the ability to withdraw FGTS funds, the 40% FGTS fine, proportional vacation pay, proportional 13th-month salary, and notice periods. Employees with less than one year of service receive only their salary balance and family allowance, while those with over a year retain their salary balance and proportional vacation pay.

Legal experts emphasize that for a dismissal to be valid, the employer must provide robust proof of the misconduct. The application of this penalty must consider the gravity of the act, proportionality, and the employee's disciplinary history. Recent legal discussions were sparked by a decision from the Labor Court in Espírito Santo, which upheld the dismissal for cause of a pregnant employee despite her job stability protections.