# Brazil labor law and employment rights

> Live situation record from CLSTR: https://clstr.news/situations/brazil-labor-law-and-employment-rights
> Updated: 2026-10-22T19:11:32.000Z. Sources: 14. Developments: 5.

Brazilian labor regulations and court rulings define various aspects of employee rights during contract terminations and health-related circumstances. Regarding severance, Article 484-A of the CLT allows for mutual agreement dismissals, enabling workers to withdraw up to 80% of their FGTS balance and receive 50% of the notice period pay and FGTS penalty, though unemployment insurance is not accessible under this model. Furthermore, the Superior Labor Court (TST) has ruled that employees can participate in voluntary dismissal plans (PDV) even during an indemnified notice period, as the notice period is legally considered part of the employment contract.

In terms of health and dismissal, Law 9.029/1995 prohibits discriminatory terminations based on health status. While companies may dismiss ill employees if the dismissal is not motivated by the illness, restrictions apply to those receiving INSS benefits due to incapacity or those with 12 months of job stability following work-related accidents. For serious illnesses carrying social stigma, such as HIV, the TST presumes dismissal to be discriminatory, shifting the burden of proof to the employer. Recent TST rulings have further expanded protections for workers on medical leave, such as maintaining employer-provided health insurance under Incident of Repetitive Review (IRR) No. 220.

Courts have also upheld dismissals where medical leave was misused, such as a case where a worker was dismissed for cause after performing pastoral duties while on medical leave. Additionally, the dismissal medical exam (exame demissional) is a mandatory occupational health assessment that employers must organize and fund within 10 days of contract termination. Failure to conduct this exam can result in administrative fines and complicate legal defenses, though it does not typically prevent the processing of severance payments.

## Timeline

### 2026-10-22: Brazil: Legal implications of missing dismissal medical exams

Employers in Brazil face administrative fines and legal risks if they fail to conduct mandatory dismissal medical exams within 10 days of a contract termination.

2 sources. https://clstr.news/cluster/brazil-legal-implications-of-missing-dismissal-medical-exams

### 2026-10-11: Brazil court upholds dismissal of worker with 88 medical leaves

A Brazilian court upheld the dismissal of a production worker who submitted 88 medical certificates in one year but was found to be working as a pastor during his medical leave.

4 sources. https://clstr.news/cluster/brazil-court-upholds-dismissal-of-worker-with-88-medical-leaves

### 2026-10-08: Brazil's Superior Labor Court issues rulings on health insurance and rest periods

Brazil's Superior Labor Court has ruled that employees on medical leave retain rights to employer health insurance and has invalidated collective clauses that compromised mandatory weekly rest periods.

2 sources. https://clstr.news/cluster/brazils-superior-labor-court-issues-rulings-on-health-insurance-and-rest-periods

### 2026-09-24: Brazil labor laws regarding illness and dismissal

Brazilian labor law prohibits discriminatory dismissals based on illness, though employees may be fired for other reasons unless protected by specific stability rules or social security benefits.

2 sources. https://clstr.news/cluster/brazil-labor-laws-regarding-illness-and-dismissal

### 2026-09-14: Brazil labor laws clarify severance and dismissal rights

Brazilian labor rulings and laws clarify employee rights regarding mutual agreement dismissals and the ability to join voluntary dismissal plans during notice periods.

5 sources. https://clstr.news/cluster/brazil-labor-laws-clarify-severance-and-dismissal-rights

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Cite as: Brazil labor law and employment rights. CLSTR, https://clstr.news/situations/brazil-labor-law-and-employment-rights