Employer of Record in Brazil (EOR in Brazil)

Hire Globally, Pay Locally, Expand Effortlessly

Brazil, the largest economy in South America, presents significant opportunities for businesses looking to expand their operations in the region. However, navigating its complex labor and tax laws can be challenging. An Employer of Record (EOR) in Brazil can streamline your operations and ensure compliance with local laws.

Want to have a Team in Brazil TODAY?

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We prefer to let others grow their business.

Want to Have a Team in Brazil TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

Three Steps to Seamless Expansion with a Brazilian Employer of Record

Step 1 – Detailed Planning & Assessment

Your collaboration with a Brazilian EOR, like INS Global, begins with a comprehensive consultation to understand your business goals. This involves determining the workforce needed, defining their roles, and setting your expansion timeline. The EOR customizes its services to meet your unique needs, ensuring a seamless integration process in Brazil.

Step 2 – Efficient Setup, Recruitment & Onboarding

Whether you’re building a new team in Brazil or relocating current staff, the EOR manages all legal and administrative obligations. This includes handling visas, work permits, payroll, contract administration, and ensuring compliance with Brazilian labor laws. Acting as your legal employer in Brazil, the EOR removes the need to set up a local entity, saving significant time and money.

Step 3 – Continuous HR Management & Compliance

Once your employees are operational in Brazil, the EOR oversees ongoing HR and payroll functions. This includes salary processing, managing employee benefits, and ensuring compliance with health insurance and social security requirements. The EOR acts as the HR liaison between you and your Brazilian team, managing administrative responsibilities and addressing employee concerns so you can focus on scaling your business.

Benefits of Partnering with a Brazilian EOR

Expedited Market Entry

Partnering with a Brazilian EOR enables your business to quickly enter the Brazilian market without the need to establish a local entity, accelerating your market penetration.

Compliance with Brazilian Labor Laws

The EOR ensures that your business complies with Brazil’s labor regulations, including those related to employment contracts, taxes, and employee benefits, reducing the risk of legal challenges.

Access to Local Talent

The EOR assists in recruiting and managing Brazilian employees, ensuring access to top talent in the region while managing all employment-related matters.

Cost Savings

By utilizing a Brazilian EOR, you can avoid the substantial costs associated with setting up and operating a local entity. The EOR handles payroll, benefits, and HR functions, allowing you to focus on business growth.

Scalable Operations

A Brazilian EOR provides the flexibility to scale your business operations according to market demands without the long-term commitment of establishing a local entity, offering greater operational agility.

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.

 5/5

EOR vs. Company Incorporation in Brazil: Making the Right Choice

While establishing a subsidiary in Brazil is a traditional method for local expansion, partnering with an EOR presents several benefits:

Speed – With an EOR like INS Global, the setup process in Brazil is accelerated, enabling you to commence operations and hire staff much faster than company incorporation, which can take several months. An EOR can have your team operational within weeks or even days.
Compliance – Both EORs and subsidiaries must adhere to Brazilian tax laws and labor regulations. EORs are well-equipped to manage these complexities and ensure ongoing compliance, reducing potential legal risks.
Cost – For smaller teams or temporary needs, EOR services are often more cost-effective than establishing a subsidiary, as they avoid the significant upfront costs of incorporation and ongoing administrative expenses. For larger companies, EORs provide streamlined solutions that integrate new markets into multi-country payroll systems seamlessly.
Control – While incorporating offers full control over HR, finances, and operations, EORs provide similar control over your workforce while reducing administrative responsibilities and liability.

Vital Criteria for Selecting the Best Employer of Record in Brazil

Choosing the right EOR in Brazil is critical for successful market entry. Consider these key factors:

Experience and Market Credibility – Look for a Brazilian EOR with a proven track record and strong market reputation, like INS Global. Client feedback and industry accolades are reliable indicators of trustworthiness.
Complete Service Offerings – Ensure the EOR provides all necessary services or can tailor their offerings to meet your needs, including visa and work permit support, payroll processing, tax compliance, and navigating Brazil’s tax and labor laws.
Scalability and Flexibility – Opt for an EOR that can expand its services as your business grows. Their team should be capable of managing a growing workforce and adapting to evolving business needs.
Reliable Communication and Transparency – Choose an EOR known for maintaining transparent and consistent communication. They should keep you informed about regulatory updates, upcoming deadlines, and any potential issues, providing a dedicated point of contact and digital tools for easy access to critical information.
Competitive and Clear Costing – Compare the pricing models of different EOR providers. Ensure their fees are clear, competitive, and free of hidden costs. Third-party advice can help you obtain the best value for your EOR in Brazil.

Brazil Labor Law Overview

Contracts – In Brazil, employment contracts are governed by the Consolidation of Labor Laws (Consolidação das Leis do Trabalho, CLT). These contracts can be for an indefinite period, a fixed term (up to two years), or for temporary work. Contracts must specify job duties, salary, working hours, and conditions for termination. The minimum wage, set by the government, was BRL 1,320 per month as of 2023. Written contracts are essential for ensuring legal clarity and protection for both employers and employees, with indefinite-term contracts being the most common due to the job security they offer.
Probationary Periods – Brazilian labor law permits probationary periods of up to 90 days. During this period, the employer can assess the employee’s suitability for the role, and either party can terminate the employment with minimal notice and without the obligation of severance pay, provided legal notice periods are adhered to. The probationary period is crucial for employers to evaluate new hires’ performance and fit within the company. Probationary employees still enjoy basic labor rights, including social security contributions and proportional paid leave, ensuring a balance between assessment flexibility and worker protection.
Working Hours – The standard workweek in Brazil is 44 hours, typically divided into 8 hours per day from Monday to Friday, plus 4 hours on Saturday, or alternatively, 8 hours over 5 days. Overtime is paid at a rate of 50% above the regular hourly wage and is limited to two hours per day. Night work, which is performed between 10 PM and 5 AM, is compensated at a 20% higher rate than daytime work. Brazil’s labor laws also promote work-life balance, with recent trends showing an increase in flexible working arrangements and remote work, especially post-pandemic.
Paid Leave – Brazilian labor law mandates various types of paid leave, including annual leave, sick leave, and maternity leave. Employees are entitled to 30 days of paid annual leave after completing a year of service. Maternity leave is set at 120 days with full pay, and paternity leave is five days. Additionally, employees are entitled to paid sick leave, which is covered by the employer for the first 15 days and by the social security system thereafter. Brazil also observes 11 public holidays, which are fully paid. These paid leave provisions are designed to ensure the well-being and job satisfaction of employees.
Social Insurance – Brazil’s social insurance system is extensive, covering health, pensions, unemployment, and work-related injuries. The National Social Security Institute (INSS) administers these benefits, with contributions from both employers (20% of the payroll) and employees (ranging from 8% to 11% of their salary). The INSS provides retirement benefits, disability pensions, and sickness benefits. Additionally, the Unified Health System (SUS) offers free healthcare services to all residents. As of 2023, approximately 86% of the Brazilian workforce is covered by social insurance, reflecting the system’s wide reach and importance in providing financial security and healthcare access.
Severance Pay – Severance pay in Brazil is mandated by the CLT and is an essential aspect of worker protection. Employees dismissed without just cause are entitled to a severance package that includes 40% of the balance in their Severance Indemnity Fund (FGTS) account, a fund into which employers contribute 8% of the employee’s salary monthly. Additionally, employees receive proportional pay for unused vacation and a 13th-month salary. The FGTS system is designed to provide financial stability during unemployment, ensuring workers have a financial cushion while seeking new employment.

Managing these intricate details can be time-consuming and requires vigilance in tracking legal changes. Collaborating with an EOR in Brazil gives you a local legal partner, ensuring your business adheres to labor laws and protects you from potential liabilities.

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FAQs

How does an EOR support entry into the Brazilian market?

An EOR in Brazil handles all legal, HR, and compliance work required for employing workers, enabling businesses to swiftly enter the market without establishing a local entity.

What financial benefits are there to using an EOR in Brazil?

Employing an EOR in Brazil can be more cost-effective than setting up a local subsidiary, as it eliminates incorporation costs and lowers ongoing administrative expenses.

Can an EOR manage visa and work permit processes in Brazil?

Yes, a Brazilian EOR handles the entire visa and work permit application process, ensuring compliance with local immigration laws and procedures.

Which types of businesses benefit most from EOR services in Brazil?

Businesses of all sizes benefit from EOR services in Brazil, particularly those seeking fast market entry, cost savings, and reduced administrative workload.

How does an EOR ensure compliance with Brazilian labor laws?

EORs in Brazil have local experts who are knowledgeable about the latest legal updates and manage all compliance activities to ensure adherence to Brazilian labor laws.

What control do I retain over my employees when using an EOR in Brazil?

While the Brazilian EOR is the legal employer, you retain considerable control over the daily management and operational decisions regarding your workforce.

Employer of Record in Brazil (EOR in Brazil)

Hire Globally, Pay Locally, Expand Effortlessly

Three Steps to Seamless Expansion with a Brazilian Employer of Record