Dismissal without cause occurs when an employer decides to terminate an employment contract without attributing serious misconduct to the employee.

Although Brazilian law permits this form of termination, the employer must comply with the resulting labor obligations. Understanding these rights helps workers identify the amounts and documents that should be provided when the employment relationship ends.

1. Which payments are generally due?

As a general rule, an employee dismissed without cause under an indefinite-term employment contract may be entitled to:

  • salary balance: payment for the days worked in the month of termination;
  • notice: worked or paid in lieu, including proportional notice where applicable;
  • proportional 13th salary: calculated according to the countable months in the year of termination;
  • accrued and proportional vacation pay: increased by the constitutional one-third payment, subject to the applicable accrual and use periods;
  • FGTS: required deposits and the 40% statutory termination compensation.

The exact calculation depends on the contract, compensation, recurring payments and any amounts already paid.

2. How does notice work?

Law no. 12,506/2011 establishes 30 days of notice, with three additional days for each year of service to the same employer, up to a total of 90 days.

Notice may be worked or paid in lieu, depending on the circumstances. When paid in lieu, the corresponding period is included in length of service for the legal purposes established by Brazilian law.

3. May the worker withdraw FGTS funds?

Dismissal without cause is a statutory ground for withdrawing funds from the FGTS linked account. In general, the 40% termination compensation is also due under FGTS legislation.

However, the withdrawal option selected by the worker may affect immediate access to the account balance. A worker enrolled in the anniversary-withdrawal option must observe that option’s specific rules. The right to the 40% compensation should therefore be distinguished from the ability to withdraw the entire account balance immediately.

4. Is unemployment insurance available?

A worker dismissed without cause may qualify for unemployment insurance if the statutory requirements are met.

The criteria include the minimum employment period applicable to each claim, unemployment status and other legal conditions. The benefit is not automatic in every dismissal and depends on an assessment of the applicable requirements.

5. What is the deadline for termination payments?

Article 477, paragraph 6, of Brazil’s Consolidation of Labor Laws (CLT) generally provides a ten-day period from the end of the contract for payment of termination amounts and delivery of the documents required by law.

Failure to comply may trigger the penalty provided for in paragraph 8 of the same article, subject to the legally recognized exceptions.

In Repetitive Theme 127, Brazil’s Superior Labor Court held that late delivery of documents proving that the termination was reported to the competent authorities may also trigger the penalty, even when payment was made within the statutory period.

This interpretation reinforces the importance of complying with both payment and documentary obligations.

6. What should be done if there are discrepancies?

If the worker identifies differences in the amounts paid, the following employment documents should be gathered:

  • employment contract and Brazilian Digital Work Card records;
  • employment termination statement;
  • payment receipts;
  • FGTS account statement;
  • documents concerning notice;
  • payslips and records of variable compensation.

Reviewing these documents helps determine how the payments were calculated and whether any differences exist. The limitation periods applicable to Brazilian labor claims must also be considered.

7. Is every dismissal without cause valid?

The possibility of dismissal without cause does not override statutory protection in specific situations.

Temporary job protection may apply in circumstances involving pregnancy, workplace accidents or employee representation, provided that the legal requirements are met. Discriminatory dismissal and other circumstances may also require an individual assessment.

The validity of a dismissal therefore depends not only on payment of termination amounts but also on the concrete circumstances in which the contract ended.

Conclusion

Dismissal without cause involves rights and duties that extend beyond payment of the final salary.

Notice, vacation pay, the 13th salary, FGTS, unemployment insurance and the payment deadline must be examined under Brazilian law and the particular terms of each contract.

Accurate legal information helps workers and employers understand their responsibilities and prevent disputes.

Vinicius Faria Advocacia
OAB/RJ 189.329
Rio de Janeiro — Brazil
Informational content. The assessment of a specific situation depends on its circumstances and supporting documents.

Legal references