Is Your US Employment Contract Illegal in Brazil?
Is Your US Employment Contract Illegal in Brazil?
✗ Our US contract says Delaware law governs, so Brazilian rules don't apply.
Brazil's CLT applies territoriality: any work habitually performed in Brazil is subject to local law, regardless of employer location. Article 3 defines employee broadly. Your US contract won't protect you.
Can't I just have my employee sign a waiver of Brazilian rights?
Without a local entity, a Brazilian court may declare a direct employment relationship with your US parent company, triggering retroactive liabilities for years of missed payments and social security.
DICA
✓ 13th monthly salary ✓ 30-day paid vacation ✓ FGTS (severance fund) deposits
❝ You cannot contract your way out of Brazilian labor law for work performed in Brazil.
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