Call them a consultant. Brazil sees an employee.
Facts over labels in Brazilian labor law.
Call them a consultant. Brazil sees an employee.
Facts over labels in Brazilian labor law.
Brazil’s CLT is a floor of mandatory rights. You cannot contract out of it. Any clause giving less than the law is automatically void, even if the worker signed a waiver.
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The principle of prevalence of facts: what actually happened matters more than what the written documents say.
✘ Mito
Myth: A signed contract as 'independent contractor' protects you.
✓ Verdade
Truth: Courts pierce labels. They check personal service and habituality.
Dica
Never rely on written labels. Brazilian courts analyze the daily work reality, not the contract title. If the work is personal and habitual, an employment relationship exists.
What exactly makes a worker an employee in Brazil?
If they must work personally (no substitutes) and regularly (not a one-off project), the law likely sees them as an employee.
Before day one, register every employee on eSocial, the government’s digital platform. The true cost of an employee is far more than just a monthly salary.
Dica
Misclassification can cost years of back pay, social charges, fines, and legal fees. Always verify the actual working relationship, not just the contract.
Don’t gamble with your business in Brazil. Protect yourself from costly labor lawsuits.