Employment Termination Guide: Rights and Calculations
Complete guide to employment termination in Brazil. Learn about severance pay calculations, deadlines, and rights for each type of dismissal.
Employment termination is a process that involves various calculations and specific rights for each situation. Understanding severance pay and its values is essential to ensure that both employer and employee fulfill their legal obligations.
Each type of dismissal generates different rights, and calculations can vary significantly. Brazilian labor legislation establishes clear rules about deadlines, amounts, and required documentation.
Types of employment termination
Dismissal without just cause
Dismissal without just cause is the most advantageous type for the worker. It occurs when the employer decides to terminate the contract without the employee having committed a serious offense.
In this case, the employee is entitled to all severance benefits, including the 40% penalty on FGTS (severance fund) and access to unemployment insurance.
Employee resignation
In employee resignation, the worker themselves requests dismissal. This type significantly reduces severance rights, not generating the right to FGTS penalty or unemployment insurance.
The employee maintains the right to salary balance, proportional vacation and proportional 13th salary, but loses compensated prior notice.
Just cause dismissal
Dismissal for just cause is applied when the employee commits a serious offense provided for in article 482 of the CLT (labor law). It is the least advantageous type for the worker.
Rights are limited only to salary balance and accrued vacation (not proportional). There is no right to prior notice, proportional 13th salary, FGTS penalty, or unemployment insurance.
Employment agreement
The employment agreement was regulated by Law 13.467/2017 (Labor Reform). It allows employer and employee to negotiate dismissal consensually.
In this type, the worker receives 50% of prior notice, 20% penalty on FGTS, and can withdraw 80% of the fund balance. They are not entitled to unemployment insurance.
Severance benefits by type
Salary balance
Salary balance corresponds to days worked in the month of termination. This right is guaranteed in all types of dismissal.
To calculate, divide the salary by 30 and multiply by days actually worked:
Example: Salary R$ 3,000, worked 15 days → R$ 3,000 ÷ 30 × 15 = R$ 1,500
Prior notice
Prior notice can be worked or compensated. In dismissal without just cause, the employer must grant 30 days of prior notice, which can be extended by 3 days per year of service, limited to 90 days.
In employee resignation, the employee must fulfill the notice or compensate the employer. In just cause dismissal and agreement, there is no right to full prior notice.
Proportional 13th salary
Proportional 13th salary is calculated based on months worked in the year. Each month worked for more than 15 days counts as a complete month.
Example: Worked 8 months, salary R$ 2,500 → R$ 2,500 ÷ 12 × 8 = R$ 1,666.67
Vacation and 1/3
Proportional vacation is due in most cases, except in just cause dismissal (where only accrued vacation is paid). The constitutional 1/3 bonus always accompanies vacation payment.
The calculation considers months worked in the current acquisition period, with the same 15-day rule.
FGTS and penalty
FGTS is always due, but the penalty varies according to termination type:
- Dismissal without just cause: 40% penalty on entire balance
- Employee resignation: no penalty
- Just cause dismissal: no penalty
- Employment agreement: 20% penalty
Step-by-step calculation
Information gathering
Before starting the calculation, gather the following data:
- Employee’s current salary
- Hiring and dismissal dates
- Accrued and proportional vacation balance
- Prior notice time due
- Current FGTS balance
Benefit calculations
Use the termination calculator to obtain precise values automatically. The system considers all variables and provides the complete calculation.
For manual calculation, add all due benefits and apply INSS (social security) and IRPF (income tax) deductions when necessary.
Result verification
Check that all values are correct, especially:
- Proportionality of vacation and 13th salary
- FGTS penalty according to termination type
- Social security and tax deductions
- Payment deadlines
Payment deadlines
Worked prior notice
When prior notice is fulfilled by working, the payment deadline is up to 1 business day after contract termination.
Compensated prior notice
In case of dismissal with compensated prior notice, payment must be made within up to 10 calendar days from dismissal notification.
Late payment penalties
Non-compliance with deadlines generates a fine equivalent to the employee’s salary, according to article 477, §8º of the CLT.
Practical examples by situation
Dismissal without just cause
Employee with R$ 4,000 salary, hired in January and dismissed in August:
| Benefit | Calculation | Value |
|---|---|---|
| Salary balance | 15 days | R$ 2,000.00 |
| Prior notice | 30 days | R$ 4,000.00 |
| Proportional 13th | 8/12 | R$ 2,666.67 |
| Proportional vacation + 1/3 | 8/12 × R$ 5,333.33 | R$ 3,555.55 |
| FGTS penalty | 40% of balance | According to balance |
Employee resignation
Same employee, but requesting resignation:
- Does not receive: compensated prior notice or FGTS penalty
- Receives: balance, proportional 13th, proportional vacation + 1/3
- Must fulfill: prior notice by working or compensate
Employment agreement
In agreement, values are reduced:
- Prior notice: 50% of value (R$ 2,000.00)
- FGTS penalty: 20% instead of 40%
- FGTS withdrawal: 80% of available balance
Termination approval
When it’s mandatory
Approval is mandatory for contracts longer than 1 year. It must be carried out at the union or Regional Labor Superintendency.
Approval deadline
The deadline is the same as severance pay payment. Lack of approval when mandatory can generate fines for the employer.
Required documents
For approval, present:
- Termination term (TRCT)
- Work card
- Benefit payment receipt
- Dismissal medical exams
- eSocial access keys
Required documents
Basic documentation
Every termination process requires the following documentation:
- TRCT (Employment Contract Termination Term)
- Work card with dismissal noted
- Unemployment insurance forms (when applicable)
- FGTS statement for verification
Medical exams
The dismissal medical exam is mandatory and must be performed by the dismissal date. Its absence can generate employer liability for subsequent accidents.
eSocial notification
The employer must inform dismissal in eSocial by the 10th of the following month or by the first subsequent event, whichever occurs first.
Lack of adequate notification can generate fines and social security complications for both parties.
Frequently Asked Questions
How long does the employer have to pay termination?
Payment must be made within 1 business day when there is worked prior notice, or 10 calendar days when there is compensated prior notice. Delay generates a fine equivalent to the employee’s salary.
Can termination be approved online?
Yes, approval can be done digitally through the Ministry of Labor system, especially after changes implemented during the pandemic. Consult your union about availability in your region.
How to calculate FGTS in termination?
FGTS corresponds to 8% of gross salary deposited monthly. In dismissal without just cause, there is a 40% penalty on the entire balance. In employment agreement, the penalty is 20% and the worker can withdraw 80% of the value.
Are accrued and proportional vacation the same thing?
No. Accrued vacation refers to the completed acquisition period that was not taken. Proportional vacation corresponds to months worked in the current acquisition period, calculated proportionally.
Is it possible to contest termination calculation?
Yes. If there are value discrepancies, the worker can seek guidance from the union, Regional Labor Superintendency, or file a lawsuit in Labor Court for calculation review.
What happens if the employer doesn’t pay termination?
The employer is subject to a fine equivalent to the employee’s salary, plus possible judicial execution. The worker can contact the Labor Public Ministry or file a lawsuit for collection.
How does intermittent contract termination work?
In intermittent contracts, termination follows the same rules, but values are calculated proportionally to periods actually worked. The 13th salary and vacation are proportional to call-up time, not the total contract period.