Modalities of employment agreements in Brazil

Two people shaking hands
The employment agreement regulates labor relations in Brazil

Brazilian employment agreement can be defined as a tacit or express agreement corresponding to an employment bond. The regulation of labor affairs in Brazil rules by the Federal Constitution, the CLT (Consolidation of Labor Laws) and other complementary laws, which aim to guarantee the rights and duties of employees and employers.

Employment agreements are responsible for setting the links between parties, and knowing the main modalities of employment bond is very relevant for companies that wish to operate in the country.

The employment agreement does not need to be written; it can be verbal or even tacit, as long as the requirements of the employment bond are present, being those: (i) work performed by an individual, (ii) habituality, (iii) personality, (iv) onerosity and (v) subordination.

The main Modalities of employment agreements are:

Employment agreement with no term.

The most usual modality of employment agreement rules with no term. Whenever the employee and the company do not agree on any other modality, the agreement between them will be considered as an agreement with no term.

Employment agreement with fixed-term.

There are some hypotheses where the hiring of employees for a specific period may occur, so the employment agreement has a date to start and end.

a) Service of a transitory nature or that justifies the predetermined term. For example, the company needs to hire an employee to build a shed. In this scenario, there is no need to sign an agreement for an indefinite period, since the service has a date to start and end.