iGlobal Law

Core Facts

• Population  :  208M
• GDP  :  USD 1,804 billion
• GDP per head  :  USD 11,212
• Workforce  :  89.35M
• Unemployment (2017)  :  13.7%
• High skilled monthly income (2017)  :  USD 1,313

Regulatory

• Government debt :  69% of GDP
• Personal income tax  :  27.50%
• Corporation tax (top rate)  :  34%
• World corruption ranking 2016  :  79th  Transparency International
• Ease of doing business ranking  :  123rd  Business Freedom Index
• Labour law  :  ILO Conventions ratified
• Data protection  :  Not recognised by EU as having adequate protection

Brazil is one of the most regulated labour law environments in the world. The employment relationship can be governed by the Federal Constitution, the Consolidation of Labour Laws (CLT), collective bargaining agreements and other legislation, resolutions and policy rules. The CLT contains extremely detailed laws on the rights of an individual and it is supplemented by a number of other relevant laws. The employment law environment is further regulated by rules on Trade Unions, Works Councils, Collective Agreements and Labour Inspectors. The global business must understand how to navigate around all these laws in order to manage risk and do business effectively in Brazil.

The Federal Labour Inspection System in Brazil currently has just under 3000 Labour Inspectors with the powers to operate throughout the country covering all enterprises, establishments and work places, public and private, professional and non-profit institutions. Its role is to verify compliance with all laws and regulations, including those relating to safety and health at work in the context of labour relations. Examples of its many tasks include the enforcement of quotas for the inclusion of apprentices and persons with disabilities, the enforcement of activities for the eradication of child labour and the elimination of forced labour (working conditions analogous to slavery). Global businesses should understand the use of Labour Inspectors in Brazil and in particular the duty to ensure compliance in advance of a labour inspection.