Are you risking 4x salary fines hiring in Brazil?
The hidden trap in Brazilian labour law.
Are you risking 4x salary fines hiring in Brazil?
The hidden trap in Brazilian labour law.
4X
What getting it wrong can cost in back payments and fines.
Without a CNPJ, you can’t legally register employees in Brazil. Courts use the primacy of facts: subordination + pay = full employee, regardless of contract.
Can I hire Brazilians as PJ contractors?
It’s common in tech, but courts often reclassify them as employees. You risk retroactive benefits and the 40% FGTS penalty.
Dica
The safest fast track is an Employer of Record (EOR). They become the legal employer, handling payroll, taxes, and eSocial registration. You just manage the work. Fees range 8–15% of employment cost — a fraction of a ...
Register on eSocial before day 1
Use EOR or open a subsidiary
Never misclassify as PJ
✘ Mito
I can hire as a contractor and avoid all labour costs.
✓ Verdade
Courts ignore contracts — if it looks like employment, you pay all CLT benefits retroactively.
Hire Brazilian talent without risking your business. Talk to a local expert.