Penalties for Breaking Employment Laws in Brazil
Brazilian worker legislation ensures worker's rights and regulates the relationship between employers and employees. If it is disrespected, penalties must be applied accordingly. Outlined in this article are the various penalties and how Employment Laws are monitored and enforced in Brazil.
In Brazil there is a section of laws that establish rules for the collective and common labor relations. These laws, all together, are recognized as Consolidação das Leis do Trabalho, also known as CLT, that guarantee the fulfillment of workers’ rights in the country. The main subjects of CLT are:
- Official employment registration with the CTPS
- Word period or schedule Breaks
- Vacations
- Special categories of workers
- Protection of work done by women
- Individuals Employment Agreements
- Right to organize in a labor union
- Supervision of labor
- Labor justice and labor legal process
The Supervision of the Ministry of Labor
If an employer does not obey or does not act in accordance with this rules they will suffer penalties. Most of them, are charged or designated by the Ministry of Work, that acts in order to create and guarantee:
- policy and guidelines to the generation of employment and income to the employee
- policy and guidelines to the modernization of the labor relations
- supervision of the work and of sanctions established by legal rules
- salary policy
- professional formation and development
- security and health of labor
- immigration policy
The infraction to the CLT is punishable by fine which is equal to the value established by law or is established according to each infraction. After the infraction is recognized by the Auditor-Fiscal do Trabalho, the professional responsible for guarantee the accomplishment of Brazilian labor legislation, the employer or company is notified.
They have the possibility to present self-defense in a period of ten days to the Ministry of Labor. The process will be forwarded for analysis and decision. If the employers were subjected to a fine they must pay it or appeal in court.
Penalties: Labor Fines with fixed value
| Situations | Fine (BRL) |
| Not paying 13° salary | 170.26 |
| Improper note in CTPS | 402.53 |
| Delay of wage payment | 170.26 |
| Charge for the emission of CTPS | 1207.60 |
| Breaking the agreement of employment | 402.53 |
| Not paying social security contribution | 75% of the debit value |
| Discrimination | 10 times the salary value |
| Delivery of Cadastro Geral de Empregados e Desempregados, also known as CAGED, which is a registry of all employees and unemployed Brazilian workers, with a delay of 30 days | 4.47 |
| Delivery of CAGED with a delay of 31 to 60 days | 6.70 |
| Loss or destruction of CTPS | 201.27 |
| Lack of notes in CTPS | 296.12 |
| Lack of updates in Livro de Registro de Empregados, also known as LRE/FRE, which is the registry book of the employees that must be filled by the Employer or Company | 201.27 |
| Lack of authentication of LRE/FRE | 201.27 |
| Not having a CAGED | 13.41 |
| Lack of employment registry | 402.53 |
| Break of vocations rules | 170.26 |
| Non-attendance in the hearing for annotation in CTPS | 402.53 |
| Not having a CTPS | 402.53 |
| Retention for more 48 hours of CTPS | 201.27 |
| Employ minors | 402.53 |
| Break of temporary work rules | 170.26 |
| Not providing public transportation vouchers | 170.26 |
| Selling the CTPS | 1207.6 |
Penalties: Labor Fines with non-fixed value
| Situations | Fine (BRL) |
| Not paying labor union contributions | 8.05 to 8,050.66 |
| Breaking the work period rules | 40.25 to 4,025.33 |
| Breaking the special conditions of the work period | 40.25 to 4,025.33 |
| Not following the proportion established by law about the number of Brazilian employees hired | 80.51 to 8050.66 |
| Not following the proportion established by law about the number of disable people hired | 1.329.18 to 132,916.84 |
| RAIS: delivery with delay, with errors, with omissions or misrepresentation | 425.64 to 4,256.00 |
| Not paying minimum wage | 40.25 to 1,227.06 |
| Breaking the security in the work place rules | 670.89 to 6,708.59 |
| Breaking the unemployment fund rules | 425.64 to 42,564.00 |
| Break labor rules for women | 80.51 to 805.09 |