Complete Guide to Employment Termination in Brazil 2025
Learn how to calculate termination pay in Brazil. Complete guide with examples, rights by dismissal type, and deadlines. Calculate correctly!
Employment termination is the moment when the employment contract ends, when the employee has the right to receive various payments. Calculating these amounts correctly is essential to ensure all rights are respected.
In 2025, termination rules follow Brazilian labor legislation, but it’s important to understand each type of dismissal and its specificities. Each termination modality generates different rights for the worker.
What is employment termination
Employment termination is the formal end of the employment relationship between employer and employee. This process involves payment of specific amounts according to the type of dismissal and length of service.
The employment settlement must be paid by the 1st business day after contract termination when there’s compensated prior notice, or by the 10th day when the notice is worked.
Types of termination
There are four main termination modalities in Brazil:
- Dismissal without just cause: Employer’s initiative without serious reason
- Resignation: Employee’s initiative
- Dismissal for just cause: Employer dismisses due to employee’s serious misconduct
- Employment agreement: Consensus between parties (Law 13.467/2017)
Employee rights
Rights vary according to termination type, but some payments are always due:
- Salary balance for days worked
- Accrued vacation with 1/3 additional
- Proportional 13th salary (when applicable)
Other payments depend on the termination modality and may include prior notice, FGTS (severance fund) fine, and unemployment insurance.
Mandatory termination payments
Salary balance
The salary balance corresponds to days actually worked in the termination month. The calculation is proportional: monthly salary ÷ 30 days × days worked.
Example: Salary R$ 3,000, worked 15 days → R$ 3,000 ÷ 30 × 15 = R$ 1,500
Prior notice
Prior notice can be worked (employee serves 30 days) or compensated (employer pays without working). Since 2011, the period increases 3 days per year worked, limited to 90 days.
Proportional prior notice calculation:
- Base: 30 days
- Additional: 3 days × complete years of work
- Maximum: 90 days
Proportional 13th salary
The proportional 13th salary is calculated on months worked in the year. A complete month is considered when more than 15 days are worked.
Formula: (Salary ÷ 12) × months worked
Example: Salary R$ 2,400, 8 months worked → R$ 2,400 ÷ 12 × 8 = R$ 1,600
Proportional and accrued vacation
Accrued vacation: Complete accrual periods not taken, always with 1/3 constitutional additional.
Proportional vacation: Calculated on the ongoing accrual period, also with 1/3 additional.
Proportional vacation calculation: (Salary ÷ 12) × months worked × 1.33
Differences by dismissal type
Dismissal without just cause
In dismissal without just cause, the employee has the right to all termination payments:
- Salary balance
- Prior notice (worked or compensated)
- Proportional 13th salary
- Proportional vacation + 1/3
- Accrued vacation + 1/3
- 40% fine on FGTS
- Unemployment insurance (if eligible)
Resignation
In resignation, the employee does not receive:
- Compensated prior notice
- FGTS fine
- Unemployment insurance
Due payments: salary balance, proportional 13th salary, proportional and accrued vacation with 1/3.
Dismissal for just cause
Just cause is the most restrictive modality. The employee loses almost all rights, receiving only:
- Salary balance
- Accrued vacation + 1/3 (if any)
Does not receive: prior notice, proportional 13th salary, proportional vacation, FGTS fine, unemployment insurance.
Employment agreement
The employment agreement (Law 13.467/2017) allows negotiation between parties:
- 50% of prior notice
- 20% fine on FGTS (instead of 40%)
- Withdrawal of 80% of FGTS balance
- Other payments in full
The employee has no right to unemployment insurance in the agreement.
How to calculate each payment
To facilitate calculation of termination payments, we recommend using our termination calculator which automates all calculations according to current legislation.
Recommended calculation order:
- Salary balance: Daily value × days worked
- Prior notice: According to modality and length of service
- Proportional 13th: (Salary ÷ 12) × months worked
- Vacation: Proportional and accrued with 1/3 additional
- FGTS: Sum of payments × 8% + fine (if applicable)
Mandatory deductions
The following usual deductions apply to termination payments:
- INSS (social security): According to 2025 table (7.5% to 14%)
- IRPF (income tax): If exceeding exemption bracket
- Alimony: When court-ordered
Complete practical example
Real value simulation
Employee data:
- Salary: R$ 4,000
- Length of service: 3 years and 4 months
- Dismissal: Without just cause
- Last month: Worked 20 days
Payment calculations:
| Payment | Calculation | Amount |
|---|---|---|
| Salary balance | R$ 4,000 ÷ 30 × 20 | R$ 2,666.67 |
| Prior notice | 30 + (3 × 3) = 39 days | R$ 5,200.00 |
| Proportional 13th | R$ 4,000 ÷ 12 × 4 | R$ 1,333.33 |
| Proportional vacation | (R$ 4,000 ÷ 12 × 4) × 1.33 | R$ 1,773.33 |
| Gross total | - | R$ 10,973.33 |
FGTS balance: R$ 10,973.33 × 8% = R$ 877.87 40% FGTS fine: On total accumulated balance
Result: The employee will receive R$ 10,973.33 net (before INSS and IRPF deductions), plus FGTS withdrawal with 40% fine.
Payment deadline
The company must make termination payment within the following deadlines:
- By the 1st business day: When prior notice compliance is waived
- By the 10th day: When prior notice is worked
- Immediately: In case of resignation
Non-compliance with deadlines generates a fine equivalent to the employee’s salary, paid in favor of the worker.
Frequently Asked Questions
How to calculate proportional prior notice?
Prior notice starts with 30 days and increases 3 days for each complete year of work, limited to 90 days. For 5 years of service: 30 + (5 × 3) = 45 days of prior notice.
Can I withdraw FGTS in dismissal without just cause?
Yes. In dismissal without just cause, you can withdraw 100% of FGTS balance plus the 40% fine deposited by the employer. In employment agreement, you can withdraw 80% of the balance.
Are proportional vacation always due?
Proportional vacation is due in most cases, except in dismissal for just cause. Even in resignation, the worker has the right to proportional vacation with 1/3 additional.
When am I entitled to unemployment insurance?
Unemployment insurance is due only in dismissal without just cause. It’s necessary to have worked at least 12 months in the last 18 months (first application) or 9 months in the last 12 months (subsequent applications).
What happens if the company delays payment?
If the company doesn’t pay termination within the legal deadline, it must pay a fine equivalent to the worker’s salary. This fine is additional to termination payments and has compensatory nature.
How does INSS deduction work in termination?
INSS applies to all termination payments of salary nature, following the 2025 progressive table (7.5% to 14%). Some compensatory payments, like FGTS fine, don’t suffer social security deduction.
Can I contest the termination amount?
Yes. If there are calculation discrepancies, you can contest administratively with the company or seek Labor Court. It’s recommended to check amounts with a reliable calculator before signing documents.
Can I negotiate termination terms?
Since 2017, the employment agreement allows negotiation between parties through CLT (labor law) Article 484-A. Both parties must agree, and the employee receives reduced amounts but can access part of FGTS.
What documents should I receive at termination?
The company must provide: TRCT (termination term), CD/SD (FGTS withdrawal guide), updated work card, RAIS information, and unemployment insurance application (when applicable).