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Employer of Record (EOR) in Brazil
Brazil is quickly becoming known as one of the leading countries for tech talent and software development. This is why companies across the globe are considering opening up locations there, or at least outsourcing some of their operations.
Residents of Brazil learn a second language from a very young age, which has led to many people speaking English. Average wages in Brazil are typically lower than in other parts of the world, too, leading to potential large cost-savings for companies that want to locate there. Hiring SERVIAP as the EOR in Brazil means bringing experts on board to handle employment issues.
Economy Facts | Human Resources | Tax
SERVIAP can help with your global expansion needs. Contact us today to learn how you can expand your business with EOR in Brazil.
An Employment of Record, also known as an EOR, will become an employer in place of a company. This allows the EOR to take on the responsibilities and liabilities that would otherwise fall onto your business. This works well for expanding businesses, as they often won’t know the ins and outs of owning a business in every country. Hiring an EOR gives a business the space to expand in more helpful ways, so they can take on more employees and begin the circle again.
An EOR can take on payroll, compliance with local laws, timekeeping, claims on unemployment, benefits to be paid and given, workers’ compensation with accidents, and more. You can also partner with a PEO, which is similar, to help with taxes, benefits and HR.
SERVIAP functions as both a PEO and an EOR, helping you in the most efficient way possible, so you can hand off the responsibilities for much of the employee operations. When you hire a company like us, we take on the responsibility and liability for any of the services mentioned above and handle the subsidiaries of the country, allowing you to avoid fines and a slowdown of operations. All you have to do is hand over the responsibilities and lease back your employees, whilst keeping all the control over your workforce.
SERVIAP serves as the client’s Employer of Record (EOR), handling all things human resources whilst freeing the client to focus on growth and expanding the business into new markets.
The tasks SERVIAP specializes in can include:
- Tax filing
- Workers’ compensation (if applicable)
- Unemployment claims
- Global hiring
- Talent Acquisition (Recruiting)
- Global HR Management
When you are hiring in Brazil, it’s important to understand you need to have a verbal agreement with your employees, and that it must include the gross salary they will be paid.
When hiring for “positions of trust,” or management-level positions, you should pay roughly 40% more than those who will be reporting to them. You also need to outline whether these employees will be exempt from things such as overtime and control of hours. This complex situation is best left to an EOR for Brazil.
Employment contracts in Brazil can be done via written contract or oral contract, though it’s always advisable to put all of this information in writing. The contract should also be written in Portuguese, which is the official language spoken in the country.
The contract needs to outline the overall compensation, requirements for termination, as well as benefits. The contract needs to outline that the compensation will be paid in the local currency (Brazilian Real).
Employees can be subject to a probationary period of up to 90 days. This can be organized in one 90-day probationary period, or a 45-day probationary period that can be extended for another 45 days for that total of 90 days.
Employers can terminate the contract of an employee at the conclusion of the probationary period. If they do this, they must give final pay that includes salary up to the final day of employment, along with any vacation pay that wasn’t taken, and 13th salary proration.
Employees in the country are subject to 30 calendar days’ worth of vacation every year once they reach 12 months of service at the company. Typically speaking, they divide these days down into two periods — one of 20 days and another of 10 days. Then, those are broken down into three periods that last 14, 5 and 5 days, respectively.
Employees are also subject to a holiday bonus that’s equal to one-third of their monthly salary.
Employees who are sick can take 15 days of paid leave, as long as they provide a medical note. Any additional days they need to take end up being paid through Brazil’s National Institute of Social Security, which provides fixed rates.
Women are not allowed to be terminated while they are pregnant, and they are able to take 120 days of leave as well. All of their benefits and salary have to be paid throughout the entirety of that protection period.
Men are also entitled to five days of paternity leave, which is paid. They must request this leave in advance.
The Brazilian government generally provides health insurance to all employees. It’s becoming more common for employers to include health insurance as a benefit to employees, though.
Other benefits are laid out in Brazilian law, and employers have little wiggle room for negotiations here, so an EOR for Brazil is critical. This can include vouchers for meals and transportation, as well as life insurance.
SERVIAP is a leading Employer of Record (EOR) ready to help your business expand operations throughout the world. EOR is a model of co-employment, where we assume total responsibility for your talent, allowing you to focus on the strategic activities of your organization.
Contact us today to learn more about how you can expand your business with an EOR for Brazil.