Page 132 - InvestmentGuideBrasilEng

MAXIMUM HOURS/ PAID HOLIDAYS PROFIT SHARING PAID MATERNITY LEAVE

OVERTIME PAY The following are the legal paid holidays that Law 10,101 of December 19, 2000, regulates the Female employees in Brazil are entitled to a 120-

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

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