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Brazil labor law and employment rights

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2026-10-14 15:18 UTC → 2026-10-23 11:44 UTC · added ~~removed~~

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. ~~However, courts~~ Courts have also upheld dismissals where medical leave was ~~misused. The 2nd Labor Court of São Caetano do Sul recently upheld the dismissal~~ misused, such as a case where a worker was dismissed for cause ~~of a production operator who submitted 88 medical certificates in one year. The court ruled in favor of the employer~~ after ~~evidence, including social media images, showed the worker~~ performing pastoral duties as while on medical leave. Additionally, the dismissal medical exam (exame demissional) is a ~~pastor during periods when he was officially excused from work due~~ mandatory occupational health assessment that employers must organize and fund within 10 days of contract termination. Failure to ~~medical restrictions.~~ conduct this exam can result in administrative fines and complicate legal defenses, though it does not typically prevent the processing of severance payments.

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