Brazilian Employment Termination: Complete 2025 Guide

Employment termination is the moment when the work contract ends, whether initiated by the employer or employee. Knowing your rights and correctly calculating termination payments is essential to avoid financial losses.

In 2025, CLT (labor law) rules continue to apply, but it’s important to stay updated with current minimum wage values and contributions. This complete guide will help you understand each payment and calculate your termination correctly.

What is employment termination

Employment termination is the end of the employment relationship between employer and employee. It can happen for various reasons, and each type of dismissal generates different rights for the worker.

Types of dismissal

There are four main types of termination, each with specific rights:

• Dismissal without just cause: Employer’s initiative without serious reason
• Dismissal with just cause: Employer dismisses due to employee’s serious misconduct
• Resignation: Worker’s own initiative
• Consensual dismissal: Agreement between parties (Law 13.467/2017)

Worker’s rights

Rights vary according to the type of termination. In dismissal without just cause, the worker is entitled to the highest number of payments. In resignation, some rights are lost.

Consensual dismissal allows access to 50% of payments that would be paid in dismissal without just cause, including reduced FGTS (severance fund) penalty and unemployment insurance.

Mandatory termination payments

Termination payments are the amounts the employer must pay the employee at the time of termination. Each type of dismissal has its particularities.

Salary balance

The salary balance corresponds to days worked in the termination month that have not yet been paid.

The calculation is proportional: monthly salary ÷ 30 days × days worked.

Example: Worker with R$ 3,000 salary who worked 15 days in January.
Calculation: R$ 3,000 ÷ 30 × 15 = R$ 1,500

Proportional and accrued vacation

Accrued vacation refers to vacation periods already earned but not taken. Proportional vacation refers to months worked in the current acquisition period.

To be entitled to proportional vacation, you must have worked at least 15 days in the month. The calculation considers complete months + 1/3 constitutional bonus.

Proportional 13th salary

The proportional 13th salary is calculated based on months worked in the termination year. A complete month is considered when the worker worked 15 days or more.

The formula is: current salary ÷ 12 × number of months worked.

Prior notice

Prior notice can be worked or paid as compensation. In compensated notice, the employer pays the amount without the employee working.

The minimum period is 30 days, plus 3 days per year worked at the same company, limited to 90 total days.

FGTS and penalty

FGTS (severance fund) corresponds to 8% of salary deposited monthly. In dismissal without just cause, there’s a right to a 40% penalty on the total balance.

In consensual dismissal, the penalty is 20%. In resignation or just cause, there’s no penalty.

How to calculate each payment

Correctly calculating termination payments requires attention to detail and knowledge of specific rules for each payment.

Step-by-step calculation

To calculate your termination correctly, follow this organized sequence:

• Step 1: Identify the type of termination
• Step 2: Calculate proportional salary balance
• Step 3: Determine accrued and proportional vacation
• Step 4: Calculate proportional 13th salary
• Step 5: Define prior notice amount
• Step 6: Add FGTS and penalty (if applicable)

Complete practical example

Let’s calculate the termination for a worker with the following characteristics:

Employee data:

• Salary: R$ 4,000
• Time at company: 2 years and 4 months
• Dismissal without just cause on January 15, 2025
• Accrued vacation: 1 period

Salary balance: R$ 4,000 ÷ 30 × 15 days = R$ 2,000

Accrued vacation: R$ 4,000 + R$ 1,333 (1/3) = R$ 5,333

Proportional vacation: 0 months (worked only 15 days in January)

Proportional 13th: R$ 4,000 ÷ 12 × 1 month = R$ 333

Prior notice: 30 days + 6 days (2 years × 3) = R$ 4,800

FGTS + penalty: Assuming R$ 8,000 balance → penalty of R$ 3,200

Approximate total: R$ 15,666 + FGTS of R$ 8,000 = R$ 23,666

Online calculator

To facilitate your calculations and avoid errors, use our employment termination calculator. It considers all variables and provides detailed results for each payment.

Payment deadlines

The employer has specific deadlines to settle termination payments, under penalty of paying additional fines.

CLT deadlines

Deadlines vary according to the type of prior notice:

• Worked prior notice: Until the 1st business day following the end
• Compensated prior notice: Until the 10th calendar day from notification

Late payment penalty

Late payment generates a penalty equivalent to the employee’s salary. This penalty is additional to normal termination payments.

The deadline starts counting from the limit date established by CLT, not from the dismissal date.

Required documents

In termination, the employer must provide:

• TRCT (Employment Contract Termination Term)
• FGTS keys for withdrawal
• Work card with annotations
• Dismissal medical exam

Frequently Asked Questions

How do I know if my termination calculation is correct?

Compare the amounts with a reliable calculator and verify that all due payments were included. Also check if INSS (social security) and IRPF (income tax) deductions were correctly applied to each payment.

Can I withdraw FGTS in any type of dismissal?

No. Full FGTS withdrawal is only released in dismissal without just cause and consensual dismissal. In resignation or just cause, FGTS remains blocked until retirement.

How long do I have to question termination amounts?

You have up to 2 years after contract termination to claim termination payments in Labor Court. During contract validity, the period is 5 years.

Can the company deduct absences from termination?

Yes, unjustified absences can be proportionally deducted from salary balance and other payments. The deduction must follow CLT rules and cannot exceed certain limits.

Do accrued vacations expire at termination?

No. Accrued vacations within the statute of limitations period (5 years during contract, 2 years after) must be paid in full at termination, even if the acquisition period was completed years ago.

Can I receive unemployment insurance if dismissed for just cause?

No. Unemployment insurance is only released in dismissal without just cause and consensual dismissal (with some reduced installments). Just cause and resignation don’t generate right to the benefit.

How does indirect termination work?

In indirect termination, the employee “dismisses” the company for serious breach of contractual obligations. Has the same rights as dismissal without just cause, but must be proven in Labor Court.