Brazilian corporate and labor law regulations

Legal frameworks in Brazil govern both corporate transitions and employment terminations. In the corporate sector, the withdrawal of a partner from a limited liability company is dictated by the company’s social contract and the Civil Code. For companies with an indefinite term, partners must provide at least 60 days’ notice, whereas fixed-term companies require judicial proof of just cause. The process involves a formal calculation of assets, known as ‘apuração de haveres’, to determine the departing partner’s share of net equity. Formalizing these changes in company records is essential to protect individual rights and ensure business continuity.

In the labor sector, the Consolidation of Labor Laws (CLT) regulates employment dismissal. Dismissal for ‘justa causa’ (just cause) requires proof of serious misconduct, such as insubordination, theft, or job abandonment. While the CLT does not set a universal 30-day rule, the Superior Labor Court (TST) establishes a presumption of abandonment after 30 days of absence following the cessation of social security benefits, provided there is intent not to return.

Dismissal types significantly impact severance: employees dismissed without just cause receive benefits including notice periods, proportional 13th-month salary, proportional vacation with a one-third bonus, and a 40% FGTS fine. Those dismissed for just cause forfeit several of these entitlements. Additionally, regarding workplace accidents, the law triggers social security mechanisms and potential criminal liability if negligence is found, requiring employers to issue official documentation to facilitate legal and social security claims.