Employment Termination Guide: Rights & Calculations 2026
Complete guide to employment termination in Brazil. Learn your rights, calculate severance pay, and understand different dismissal types with examples.
Employment termination is a process that generates many doubts for both employees and employers. Severance pay calculations vary significantly depending on the type of dismissal, and knowing your rights is essential to avoid losses.
In 2026, CLT (labor law) rules continue to apply, but some values have been updated. The termination calculator automates all these complex calculations, ensuring accuracy in your rights.
Types of employment termination
Dismissal without just cause
Dismissal without just cause occurs when the employer terminates the employee without the latter having committed serious misconduct. It’s the most common type and guarantees more rights to the worker.
In this case, the employee is entitled to all possible severance benefits. The employer doesn’t need to justify the decision but must bear all costs provided by law.
Resignation
When the worker requests dismissal, it characterizes resignation. Here, some rights are lost, especially unemployment insurance and FGTS (severance fund) penalty.
The worker must formalize the request in writing. If they have more than one year with the company, ratification at the union or Ministry of Labor may be mandatory.
Dismissal for just cause
Just cause occurs when the employee commits serious misconduct provided in article 482 of CLT. Situations include:
- Acts of dishonesty
- Misconduct
- Unauthorized regular trading
- Criminal conviction
- Negligence at work
- Habitual drunkenness or on duty
- Violation of company secrets
- Acts of indiscipline or insubordination
- Job abandonment
- Harmful acts against anyone’s honor
- Constant gambling practice
In this case, the worker loses most rights, receiving only salary balance and accrued vacation.
Consensual dismissal
Created by Law 13.467/2017 (Labor Reform), it allows mutual agreement between employer and employee. It’s an intermediate option between dismissal without just cause and resignation.
The worker receives 50% of FGTS penalty and can withdraw 80% of FGTS balance, but isn’t entitled to unemployment insurance.
Severance benefits by type
Prior notice
Prior notice can be worked (30 days of work) or compensated (payment without working). In dismissal without just cause, it’s the employee’s right.
From the second year with the company, 3 days per year worked are added, up to a maximum of 90 days. An employee with 10 years receives 60 days of prior notice.
Example: Employee with 5 years at company → 30 days + (4 × 3) = 42 days of prior notice
Proportional and accrued vacation
Accrued vacation refers to complete acquisition periods not yet taken. Proportional vacation refers to incomplete acquisition periods.
Vacation always includes the constitutional third (+33.33%). In just cause dismissal, only accrued vacation is paid, without the proportional period.
Proportional 13th salary
Calculated proportionally to months worked in the termination year. Each month worked (or fraction equal to or greater than 15 days) equals 1/12 of salary.
In dismissal for just cause, proportional 13th salary is lost, even if advances have already been paid.
FGTS and penalty
The FGTS balance can always be withdrawn upon termination (except resignation). The 40% penalty on the balance is only due in dismissal without just cause.
In consensual dismissal, the penalty is reduced to 20% and the worker can withdraw 80% of total balance.
How to calculate each benefit
Detailed step-by-step
Termination calculation follows this specific order:
- Salary balance: Days worked in month × (salary ÷ 30)
- Prior notice: Full salary + regular additions
- Proportional 13th: (Salary ÷ 12) × months worked in year
- Vacation: Proportional or accrued + 1/3 constitutional
- FGTS: 8% on all benefits + penalty (if applicable)
- Deductions: INSS (social security) and IRPF (income tax) when applicable
Practical examples
Let’s calculate termination without just cause with the following data:
Employee: João Silva
Salary: R$ 4,000.00
Hire date: 03/15/2023
Termination: 01/10/2026
Accrued vacation: 1 period (Mar/2024 to Mar/2025)
Detailed calculation:
| Benefit | Calculation | Amount |
|---|---|---|
| Salary balance | (R$ 4,000 ÷ 30) × 10 days | R$ 1,333.33 |
| Prior notice | R$ 4,000 + 6 extra days | R$ 4,800.00 |
| Proportional 13th | (R$ 4,000 ÷ 12) × 1 month | R$ 333.33 |
| Accrued vacation | R$ 4,000 + R$ 1,333.33 | R$ 5,333.33 |
| Proportional vacation | (R$ 4,000 ÷ 12) × 10 + 1/3 | R$ 4,444.44 |
| Gross total | R$ 16,244.43 |
Mandatory deductions
Severance benefits are subject to:
- INSS: According to 2026 table (maximum R$ 908.85)
- IRPF: If applicable, by progressive table
- Alimony: When legally determined
The termination calculator performs all these calculations automatically, considering updated 2026 rates.
Payment deadline
Legal deadlines
Severance pay must occur:
- With worked prior notice: By 1st business day after termination
- With compensated prior notice: Within 10 days after notification
- Resignation: Within 10 days after dismissal
Consequences of delay
Non-compliance with deadlines generates penalty equivalent to employee’s salary. This penalty is additional to benefits already due.
The company is also subject to Ministry of Labor inspection and may face labor lawsuits.
Termination ratification
When it’s mandatory
Ratification is mandatory when:
- Employee with more than 1 year at company
- Any type of termination (dismissal, resignation, consensual)
- Gross amount exceeding R$ 20,000.00 (regardless of time)
Where to get ratification
Ratification can be performed at:
- Employee’s category union
- Ministry of Labor (when no union exists)
- Public agencies accredited by MTE
Required documents
For ratification, the following are mandatory:
- Termination agreement (TRCT)
- Work card
- Identification document
- Proof of last FGTS payment
- FGTS regularity certificate
- Dismissal notice (CD)
- Dismissal medical examination
Frequently Asked Questions
Can I withdraw FGTS in any type of termination?
Yes, except in resignation. In dismissal without just cause, you withdraw 100% + 40% penalty. In dismissal for just cause, you withdraw only the balance. In consensual dismissal, you withdraw 80% of balance.
What happens if the company delays termination payment?
The company must pay penalty equivalent to your salary in addition to benefits already due. You can also contact the union or file a labor lawsuit to guarantee your rights.
Are proportional vacation days always due upon termination?
No. In dismissal for just cause, you lose the right to proportional vacation, receiving only accrued vacation (complete periods already acquired). In other cases, proportional vacation is always due.
How does compensated prior notice work?
In compensated prior notice, you don’t work the 30 days but receive the corresponding amount. For employees with more than 1 year, 3 days per year worked are added, up to a maximum of 90 total days.
Can I receive unemployment insurance in consensual dismissal?
No. Unemployment insurance is only due in dismissal without just cause. In consensual dismissal, you lose this right but can withdraw 80% of FGTS and receive a 20% penalty.
Can the company deduct absences from termination pay?
Yes. Unjustified absences are deducted from salary balance and may impact proportional vacation and 13th salary. One unjustified absence deducts 1/30 of monthly salary from severance benefits.
How long do I have to question termination amounts?
You have up to 2 years after contract termination to question amounts in Labor Court. It’s recommended to check all calculations before signing termination settlement documents.