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No dismissal at will: notice, the FGTS fine and job protection

Last verified: 2026-10-27 · Status: Stable

Abroad, many employers can end employment at will or with a short notice; in Brazil every dismissal without just cause costs notice of 30 to 90 days and a deposit of 40 percent of the worker's whole FGTS balance. Just cause is limited to a closed list of serious faults, final pay is due within 10 days, and some workers (accident victims, union officers, pregnant employees) cannot be dismissed at all for a period. No union approval is needed, though mass dismissals require prior union involvement, and a dismissal by mutual agreement halves the notice and the FGTS fine.

USD figures use the Banco Central do Brasil PTAX selling rate of R$5.3346 per US dollar for 27 October 2026. Conversions are for orientation only.

Key facts

Minimum notice of dismissal	30 daysLei nº 12.506 art. 1, as of 2026-10-27 · in force
Maximum notice of dismissal	90 daysLei nº 12.506 art. 1 sole paragraph, as of 2026-10-27 · in force
Extra notice per year of service	3 daysLei nº 12.506 art. 1 sole paragraph, as of 2026-10-27 · in force
FGTS fine on dismissal without cause	40 %Lei nº 8.036 art. 18 § 1, as of 2026-10-27 · in force
FGTS fine on termination by agreement	20 %CLT art. 484-A, as of 2026-10-27 · in force
Deadline to pay final pay	10 daysCLT art. 477 § 6, as of 2026-10-27 · in force
Union approval needed for collective dismissals	No (prior union intervention required for mass dismissals, STF Theme 638) CLT art. 477-A; STF Theme 638, as of 2026-10-27 · in force
Job security after work accident leave	12 monthsLei nº 8.213 art. 118, as of 2026-10-27 · in force
Maximum probation contract	90 daysCLT art. 445 sole paragraph, as of 2026-10-27 · in force
Maximum fixed term contract	2 yearsCLT art. 445, as of 2026-10-27 · in force

The rule

1. The Constitution protects employment against arbitrary dismissal or dismissal without just cause, and gives every worker notice proportional to length of service, of at least 30 days. There is no general at will employment.
Cost to do it: No fee; the cost is the notice and the FGTS fine in the next rules.
Example: Any employee hired for an indefinite term in Brazil is covered, whatever the contract says. / Covers every employee regardless of salary in US dollars.Constituição Federal of 5 October 1988, Art. 7 items I, III and XXI, 1988-10-05 official text · verified 2026-10-27

2. Notice is 30 days for up to one year with the same employer, plus 3 days for each further year, up to 60 extra days, so the maximum is 90 days. If the employer does not give notice, it pays the salary for the notice period, and that period still counts as service. Habitual overtime is part of paid notice.
Cost to do it: 30 to 90 days of pay per worker, worked or paid.
Example: A worker earning R$15,000 a month with 10 full years: 60 days of notice, R$30,000 if paid instead of worked. / About US$5,624 on a salary of about US$2,812 a month.Lei nº 12.506 of 11 October 2011; Consolidação das Leis do Trabalho (CLT), Decreto-Lei nº 5.452 of 1 May 1943, Lei nº 12.506 art. 1 and sole paragraph; CLT art. 487 § 1 and § 5, 2011-10-11 official text · verified 2026-10-27

3. On a dismissal without just cause the employer deposits in the worker's FGTS account 40 percent of all deposits made during the contract, updated with interest; 20 percent for reciprocal fault or force majeure recognized by the Labor Court. The employer also deposits any FGTS for the month of termination and the previous month not yet paid.
Cost to do it: 40 percent of the updated FGTS balance built up over the whole contract (8 percent of pay each month under art. 15).
Example: FGTS balance of R$150,000: fine of R$60,000. / Balance of about US$28,118: fine of about US$11,247.Lei nº 8.036 of 11 May 1990 (FGTS law), as worded by Lei nº 9.491 of 9 September 1997, Art. 18 caput and §§ 1 and 2, 1997-09-09 official text · verified 2026-10-27

4. Just cause, which removes notice and the FGTS fine, is a closed list of serious faults, among them dishonesty, habitual negligence, drunkenness at work, breach of company secrets, insubordination, job abandonment and loss of a professional license through the worker's own fault.
Cost to do it: No fee; a just cause dismissal that the Labor Court rejects is converted into a dismissal without cause, with notice and the 40 percent fine.
Example: Poor performance alone is not on the list; it is handled as a dismissal without cause. / No US dollar amount; the risk is the full severance if the cause is not proven.CLT, art. 482 item m added by Lei nº 13.467 of 13 July 2017, Art. 482 items a to m, 2017-07-13 official text · verified 2026-10-27

5. Employer and employee may end the contract by agreement: half of the paid notice and half of the FGTS fine (20 percent) are due, all other items in full; the worker may withdraw up to 80 percent of the FGTS balance but has no unemployment insurance.
Cost to do it: Half of the notice and a 20 percent FGTS fine.
Example: Same worker: notice R$15,000 and FGTS fine R$30,000. / About US$2,812 and US$5,624.CLT, art. 484-A added by Lei nº 13.467 of 13 July 2017, Art. 484-A items I and II, §§ 1 and 2, 2017-07-13 official text · verified 2026-10-27

6. Final pay must be paid and the termination reported within 10 days of the end of the contract. Late payment costs a fine to the worker equal to one salary, plus an administrative fine per worker. If the amount is disputed in court, the undisputed part must be paid at the first hearing or it is owed with 50 percent added.
Cost to do it: One salary to the worker if the 10 day deadline is missed.
Example: Paying the worker above on day 12: an extra R$15,000. / About US$2,812.CLT, art. 477 § 6 as worded by Lei nº 13.467 of 13 July 2017; § 8 added by Lei nº 7.855 of 24 October 1989; art. 467 as worded by Lei nº 10.272 of 5 September 2001, Art. 477 §§ 6 and 8; art. 467, 2017-07-13 official text · verified 2026-10-27

7. Under the CLT, individual, multiple and collective dismissals without cause are treated alike and need no prior union authorization or collective agreement. The Supreme Court (STF) has however held, in Theme 638 of general repercussion, that mass dismissals require prior union intervention; on the motion for clarification judged in April 2023 it limited that requirement to mass dismissals after the publication of the minutes of the merits ruling. Intervention means engaging the union first, not obtaining its authorization.
Cost to do it: No fee; the cost is the time to engage the union before a mass dismissal.
Example: A company closing a 200 person plant needs no union authorization, but should involve the union before giving notice. / No US dollar amount.CLT, art. 477-A added by Lei nº 13.467 of 13 July 2017; STF, RE 999.435 (Theme 638), final on 23 June 2023, CLT art. 477-A; STF Theme 638, 2017-07-13 official text · verified 2026-10-27

8. Some workers have temporary job security: a worker back from accident related sick leave keeps the job for at least 12 months after the benefit ends; a union candidate or officer cannot be dismissed from registration of the candidacy until one year after the term, save for serious misconduct proven under the CLT; a pregnant employee has the constitutional stability even if pregnancy is confirmed during notice; and a worker with a disability hired under the quota can only be dismissed without cause after another worker with a disability is hired.
Cost to do it: A dismissal in breach is typically reversed or converted into pay for the protected period.
Example: A worker earning R$15,000 returns from accident leave: dismissing them in the next 12 months exposes up to R$180,000 of salary for the period. / About US$33,742.Lei nº 8.213 of 24 July 1991; CLT (art. 391-A added by Lei nº 12.812 of 16 May 2013); Lei nº 8.213 art. 93 § 1 as worded by Lei nº 13.146 of 6 July 2015, Lei nº 8.213 arts. 118 and 93 § 1; CLT arts. 391-A and 543 § 3, 1991-07-24 official text · verified 2026-10-27

9. Fixed term contracts are limited to 2 years and probation contracts to 90 days. If the employer ends a fixed term contract early without cause, it pays half of the pay the worker would have earned until the end date.
Cost to do it: Half of the remaining pay to the end date.
Example: Ending a 12 month fixed term contract at R$15,000 a month with 4 months left: R$30,000. / About US$5,624.CLT, art. 445 as worded by Decreto-Lei nº 229 of 28 February 1967, Art. 445 and sole paragraph; art. 479, 1967-02-28 official text · verified 2026-10-27

Route	Notice	FGTS fine	FGTS withdrawal	Unemployment insurance
Dismissal without cause	30 to 90 days	40 percent	Full	Yes
Mutual agreement (art. 484-A)	Half, if paid	20 percent	Up to 80 percent	No
Just cause (art. 482)	None	None	No	No
Reciprocal fault or force majeure	Per court	20 percent	Per law	Per law

Cost of ending an indefinite contract, by route (CLT and Lei nº 8.036).

Worked example

A foreign owned Ltda. dismisses without cause a manager with 10 full years of service earning R$15,000 a month (about US$2,812), with an FGTS balance of R$150,000 (about US$28,118). It owes 60 days of notice, R$30,000 (about US$5,624) if paid (Lei nº 12.506 art. 1), and an FGTS fine of R$60,000 (about US$11,247) (Lei nº 8.036 art. 18 § 1), together R$90,000 (about US$16,871) before accrued vacation, the proportional 13th salary and payroll charges. If both sides agree to end the contract instead, notice and fine fall to R$45,000 (about US$8,435) (CLT art. 484-A).

Step by step

1. Before deciding, check for job security: recent accident leave, union candidacy or office, pregnancy, quota hires with a disability.
2. Decide the route: without cause, mutual agreement or just cause, and document any just cause against the art. 482 list.
3. Give written notice (worked or paid) of 30 days plus 3 days per year of service.
4. Calculate final pay with the FGTS fine on the full updated balance, and pay within 10 days of the end of the contract.
5. Report the termination and hand over the documents within the same 10 days to avoid the one salary fine.
6. For a mass dismissal, involve the union before notices go out (STF Theme 638).
7. Keep records for the claim window: claims can be brought up to two years after the contract ends, covering the last five years (Constitution art. 7 item XXIX).

Common traps

The 40 percent fine is on the FGTS balance of the whole contract, not on the last salary, so it grows with tenure (Lei nº 8.036 art. 18 § 1).
Missing the 10 day final pay deadline costs one extra salary per worker (CLT art. 477 § 8).
Pregnancy confirmed during notice, even paid notice, still triggers stability (CLT art. 391-A).
Dismissing a quota worker with a disability without hiring a replacement first is unlawful (Lei nº 8.213 art. 93 § 1).
A just cause that the court rejects becomes a dismissal without cause, with the full notice and fine due.

Sources

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