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Hiring employees & recruitment requirements in Brazil

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Brazil is the largest economy in Latin America and has the largest population. This economic powerhouse is a great jurisdiction to employ local staff to assist with your business activities. In addition, local Brazilians are often tri-lingual; Portuguese, Spanish and English, which is extremely advantageous when conducting business in an International environment. However, before hiring staff in Brazil, it is important to understand the somewhat complicated employer requirements.

Watch the short yet informative presentation below and stay compliant when hiring staff in Brazil.

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Hiring employees & recruitment requirements in Brazil

  1. 1. Hiring Employees + Recruitment Requirements in Brazil www.bizlatinhub.com
  2. 2. www.bizlatinhub.com Key Considerations: Employment Find below, some of the key considerations that should be taken into account before contracting staff in Brazil Yes – 90 days Is there an employee probation period? Yes Do staff need a local employment contract? Yes Can expatriate staff be hired? 30 days after 12 months of work Vacation entitlement Max employer contribution is 85% Total cost of employment Employers - they must also pay employee’s social security Who manages withholding tax? • Christmas Bonus • Medical Insurance • Life Insurance • Savings fund Employee benefits
  3. 3. www.bizlatinhub.com Pathways to Hiring Staff Through a local legal entity Through a PEO solution: Professional Employer Organization
  4. 4. Forming a Legal Entity in Brazil www.bizlatinhub.com In Brazil, there are (3) main types of legal entities: Limited Liability Company (LTDA), Closed Joint Stock Company, Open Joint Stock Company and the General Partnership Company Advantages: • Greater control of your employees • Better knowledge of local market, laws and regulation • Viewed more positively than a PEO solution Disadvantages: • High set-up/ongoing costs • Administration involved in managing a local company • Accounting and tax obligations
  5. 5. Professional Employer Organization www.bizlatinhub.com Advantages: • You can operate without forming and maintaining a local entity • Limited legal responsibility • Cost-effective way to convert international contractors into employees Disadvantages: • The PEO becomes a co-employer • Loss of control • Costs involved with PEO services • Compromised company culture International PEO is a method to employ staff without having your own company
  6. 6. www.bizlatinhub.com contact@bizlatinhub.com Are you looking to hire staff? As you are now aware, you have two options to hire staff: a) Through a Local Legal Entity or b) Through a PEO solution Need assistance hiring employees? Partner with Biz Latin Hub to learn how we can support you and your business in Latin America
  7. 7. Doing Business in Brazil? Learn More Here! www.bizlatinhub.com What You Need to Know to Get a Brazilian Investor Visa and Permanent Residency Key Considerations when Opening a Company in Brazil? Company Formation in Brazil: An Overview of the Sociedad Limitada (SRL)