Page 131 - InvestmentGuideBrasilEng

MAXIMUM HOURS/ PAID HOLIDAYS PROFIT SHARING
OVERTIME PAY The following are the legal paid holidays that
must be observed. As mentioned above, an em-
Regular working hours are limited to 8 hours per ployee required to work on any of these holidays
day and 44 hours per week. must be paid at the rate of at least 100% over his
The employees’ regular work schedule may be or her normal wage.
increased by overtime hours. However, the over-
time hours cannot exceed the legal limit of two
hours per day. ? New Year’s Day (January 1);
Overtime work during business days requires
an additional overtime payment of at least 50% ? Carnival (varies);
more than the regular rate. Work on Sundays and
holidays requires a permit from the Ministry of La- ? Good Friday/Easter (varies);
bor and a minimum overtime payment of at least
100% more than the regular rate. Collective bar- ? Tiradentes (Brazilian Martyr for
gaining agreement may provide for higher over- National Independence)(ApriI21);
time payments.
? Labor Day (May 1);
PAID LEAVE ? Corpus Christi (varies);
In Brazil, every employee is entitled to an annual ? Brazilian Independence Day (September 7);
30-calendar day paid leave, in addition to the hol-
idays occurring during the year. The employee’s ? Our Saint Lady of Aparecida (October 12);
vacation right is acquired after a year of continu-
ous employment. The leave must be taken in the ? All Souls’ Day (November 2);
course of the 12 months following the anniversa-
ry date of employment. If the employee does not ? Proclamation of the Republic (November 15);
take his or her vacation on time, the company
must pay the respective compensation in double. ? Christmas Day (December 25).
The Federal Constitution also provides that
employers must pay an additional 1/3 of the There are also paid state and municipal holidays.
monthly salary as a vacation bonus during the
month the employee is on vacation.
CHRISTMAS BONUS
(13 SALARY)
TH
The Constitution also provides that all employers
must pay the Christmas Bonus, which is better
known as 13th salary. This is an additional month-
ly salary payment each year. This payment is made
in two installments: the first installment is paid
between February and November of each year
and the second installment is paid on or before
December 20. The Christmas Bonus is paid based
not on the base salary, but on the employee’s en-
tire compensation, including the usual overtime
and bonuses.
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PAID MATERNITY LEAVE
Law 10,101 of December 19, 2000, regulates the Female employees in Brazil are entitled to a 120-
employees’ share in the company’s profits or re- day paid maternity leave. The payment of salary
sults, as an instrument to align capital and the during the maternity leave is made by the employ-
workforce and as a production incentive. er, who may offset the corresponding amount
Although it is not mandatory, once the com- against Social Security charges.
pany decides to implement this benefit, it has to Under the CLT, an employer cannot dismiss
follow some important rules: pregnant employees from the confirmation date
of the pregnancy until at least five months after
? All company employees must be allowed the birth.
to participate in the profit-sharing plan;
? The company must renegotiate the Finally, in addition to the benefits above, em-
content of the profit sharing plan every ployers may voluntarily provide further ones at
year with the labor union. The negotiation their discretion. In Brazil, employers usually pro-
instrument usually establishes the rules to vide health care plans and life insurance policies
set the material participation rights and to their employees.
procedural rules, including mechanisms Most usual fringe benefits granted to employ-
to evaluate the information related to the ees (i.e., health insurance, pension fund, life insur-
accomplishment of the agreed goals, frequency
ance, education, etc.) are not considered salary
of the distribution, terms of validity, and for any purpose.
frequency of review of the agreement;
? Profit sharing does not replace
or complement the employees’
compensation, nor it is a basis for any
labor or social security charges;
? It is subject to withholding income tax.
HEALTH AND SAFETY
Although the CLT contains a chapter that deals
exclusively with health and safety matters, the
Labor Ministry publishes Administrative Rules
which establish specific provisions in connection
with, among other matters, the prevention of and
protection from accidents, personal safety equip-
ment, building safety requirements, transporta-
tion and handling of materials, hazardous work
conditions, and environmental contamination.
Also, some employers must establish an in-
ternal accident prevention committee in every
establishment. This committee is made up of rep-
resentatives of the employer and the employees
and must hold periodic meetings to prevent on-
the-job accidents.
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