When a business brings new talent into its existing operations, a phase of mutual assessment can be useful for both parties. This period is called probation, which provides both the employer and the new employee with the opportunity to evaluate the suitability before a long-term commitment. An employer evaluates factors such as the employee’s skills and work ethic, and the employee assesses the job and the work environment.

In this guide, we will take a look at the probation periods in Brazil to find how they are regulated by the Brazilian labor laws. These precise legal provisions are for companies and individuals to comply with their obligations and rights during this initial assessment phase.

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Definition of a Probation Period in Brazil

In Brazil, a probation period or a “período de experiência” is an employment contract at the beginning of an indefinite-term employment relationship. The employer evaluates the new employee’s professional capabilities, adaptability to the work environment, performance, and fulfillment of job duties. The employee assesses the work conditions, management style, and overall job satisfaction to determine if the position aligns with their expectations and career goals or not.

This probationary period commences on the first day the employee begins work and is regulated by Article 445 of the Consolidated Labor Laws. Unlike some jurisdictions where probation can be informal, in Brazil, it is a formal contractual term that must be agreed upon in writing. The period concludes either through termination by either party, or, if neither party decides to terminate, it automatically converts into an indefinite-term employment contract once it reaches its maximum duration.

Lengths of Probationary Periods in Brazil

The maximum legal duration for a probationary period in Brazil is 90 calendar days. It is not tied to the employee’s role, qualifications, or the type of contract as long as it’s intended to lead to an indefinite term. 

If an initial period is set at, for example, 30 days, any extension must ensure the combined duration does not go beyond the 90-day limit. A probationary period can be extended only once. For example, a 30-day initial probation period can be extended for a maximum of an additional 60 days to reach the 90-day limit. For the probationary period to be legally valid, it must be in writing within the individual employment contract.

Permanent or Indefinite Contracts

In Brazil, the probationary period is almost exclusively applied to these indefinite contracts and serves as the initial fixed-term phase before the employment becomes permanent.

For the majority of new hires who are intended to be long-term employees, the maximum duration for this initial probationary period, regardless of the role, is 90 days and covers the entire assessment phase. 

If, by the end of the 90-day maximum, neither party terminates the contract, it automatically becomes an indefinite-term employment contract, and no new contract or formal renewal is required. The employee’s continuity of service dates from their first day of probation.

Fixed-Term or Definite Contracts

The probationary period itself is a type of fixed-term contract, and it is different from other types of fixed-term contracts in Brazil, such as those for specific projects, seasonal work, or temporary replacements. A probationary period can be included within other fixed-term employment contracts. However, even in such cases, the probation period cannot exceed the general 90-day maximum.

Other fixed-term contracts have 2 years maximum duration and can only be extended once. In the case when a fixed-term contract exceeds two years or is extended more than once, it automatically converts into an indefinite-term contract. If an employee is rehired by the same employer after a previous fixed-term contract, the new contract cannot include a new probationary period. 

Legal Considerations for Probation Periods in Brazil

The framework governing probation periods in Brazil is dictated by the Consolidação das Leis do Trabalho, with interpretations from labor courts and collective bargaining agreements (CBAs). These rules protect the rights of workers and offer a defined period to assess a new hire. During the probationary period, both parties are expected to act in good faith. The primary purpose is the mutual assessment of the employment relationship, not arbitrary termination.

Pay and Working Conditions 

Employees under a probationary contract in Brazil are entitled to the same rights and working conditions as those on an indefinite-term contract. All employees must be paid at least the national minimum wage. The national minimum wage in Brazil is 1,518 BRL per month.

The standard working week in Brazil is 44 hours, distributed over 8 hours per day, Monday to Friday, with 4 hours on Saturday. Daily working hours generally cannot exceed 8 hours. Any hours worked beyond the standard must be compensated as overtime.

Overtime is compensated at a minimum of 50% above the normal hourly wage for weekdays. For work on weekly rest days or public holidays, the overtime premium is typically 100%. Work performed between 10 PM and 5 AM or 9 PM and 5 AM is considered night work and must be compensated with an additional premium of at least 20% on the regular hourly wage.

For a workday exceeding six hours, a minimum one-hour meal/rest break is mandatory. Employers are legally required to contribute 8% of the employee’s monthly salary to the employee’s individual FGTS account. This contribution is mandatory even during the probationary period. 

Both employers and employees contribute to the INSS. Employer contributions are typically 20% of the employee’s salary, plus additional levies for workplace risk and third-party entities. Employee contributions are progressive, ranging from 7.5% to 14% depending on income level.

Termination and Notice

If the employer decides to terminate the employee without just cause before the probation period ends, the employer is obligated to pay:

  • Salary balance for days worked
  • Proportional 13th salary
  • Proportional vacation pay, plus the mandatory one-third vacation bonus
  • A fine of 40% of the balance in the employee’s FGTS account
  • Compensation for early termination

If an employer terminates the employee for just cause disciplinary issues, the employee is generally only entitled to the salary balance for days worked. Proportional 13th salary, vacation pay, and FGTS fine/withdrawal usually do not apply.

Vacation / Holidays

Brazil has 12 national holidays. If a public holiday falls during a worker’s probationary period, the worker is entitled to the day off with pay. If required to work on a public holiday, the employee must receive overtime compensation (100% above their normal daily wage).

Employees in Brazil accrue vacation after being employed for 12 months. This includes 30 days of paid annual leave and a one-third vacation bonus. 

Benefits of Probation Periods in Brazil

Probationary periods have many advantages in Brazil for employees and employers, and they include the following:

  • For Employees

Employees gain a formal and defined period to experience their new work environment.

Employees have a clear pathway to resign within the probationary period.

From day one, probationary employees get benefits, as permanent employees do.

  • For Employers

Employers can assess a worker’s performance, reliability, adaptability, and cultural fit.

If a new hire proves unsuitable for the role or the company culture, employers can terminate the employment contract more easily and with predefined compensation terms during probation.

The clear legal framework for probation in the CLT helps employers bypass the financial and legal risks of a bad hire.

Conclusion

Brazil represents a compelling market for international businesses, but handling its employee-protective labor laws and probationary periods is important for compliant and effective hiring. The Brazilian CLT provides a clear framework for these trial periods and sets a maximum duration of 90 days.

For international businesses without deep knowledge of Brazilian labor law, partnering with Remote People can be an invaluable strategic decision. We help you with the complexities of local employment and ensure your business meets all probationary period laws to make hiring new staff in Brazil a smoother process. 

Frequently Asked Questions

No, a probation period is not mandatory for all employment contracts in Brazil. However, if an employer wishes to implement one, it must be explicitly agreed upon in writing within the employment contract. 

The maximum legal duration for a probationary period in Brazil is 90 calendar days. This limit includes any single extension. For instance, an initial 30-day period can be extended by a maximum of 60 days, or a 45-day period by another 45 days, but the total cannot exceed 90 days.

During the probationary period, either the employer or the employee can terminate the employment agreement with more flexibility than after probation.

Yes. Probationary employees are entitled to most of the same fundamental rights and benefits as permanent employees under the CLT.