Brazilian Labor Termination Guide: Rights, Calculations and Deadlines 2026

Rescisao trabalhista (labor termination) is the legal process that formalizes the end of an employment contract in Brazil, governed by the CLT (Consolidacao das Leis do Trabalho) - the Consolidation of Labor Laws. This is one of the most important moments in a worker's professional life, as it determines how much money they will receive upon leaving the company.

In Brazil, the type of termination depends on who initiates it and the circumstances of the dismissal. Each type generates different rights:

Termination type	Initiated by	Main rights
Demissao sem justa causa	Employer (without just cause)	All rights: FGTS + 40% fine, notice period, vacation, 13th, unemployment insurance
Demissao por justa causa	Employer (for serious misconduct)	Only salary balance and overdue vacation + 1/3
Pedido de demissao	Worker (voluntary resignation)	Salary balance, vacation + 1/3, proportional 13th. No FGTS fine or unemployment insurance
Rescisao por acordo	Mutual agreement (2017 Reform)	20% FGTS fine (instead of 40%), 50% notice, withdrawal of 80% FGTS
Rescisao indireta	Worker (due to employer fault)	Same rights as demissao sem justa causa

Understanding the difference between these types is fundamental to knowing exactly what you are entitled to. Demissao sem justa causa is the most common and generates the most rights for the worker. Justa causa is the most restrictive and can only be applied for specific causes defined in Article 482 of the CLT.

If you need to calculate your termination quickly, use our Brazil rescisao calculator which covers all scenarios.

The FGTS (Fundo de Garantia do Tempo de Servico) - Severance Indemnity Fund - is one of the most important rights of Brazilian workers. Each month, the employer deposits 8% of the worker's gross salary into a linked FGTS account at Caixa Economica Federal. This money belongs to the worker but can only be withdrawn in specific situations.

How FGTS works:

• The employer deposits 8% of the monthly salary (including 13th, overtime, and additional pay)
• The balance earns TR (Taxa Referencial) + 3% per year
• Workers can check their balance through the FGTS app or the Caixa website
• Deposits must be made by the 7th of each month

When you can withdraw FGTS:

• Dismissal without just cause (full balance + 40% fine)
• Mutual agreement termination (80% of balance + 20% fine)
• Indirect termination (full balance + 40% fine)
• Retirement
• Purchase of own home
• Serious illness (cancer, HIV, etc.)
• Inactive account for 3 years without deposits
• Birthday withdrawal (annual partial withdrawal, if opted in)

The FGTS termination fine:

When the employer dismisses sem justa causa (without just cause), they must pay a fine of 40% on the total FGTS balance accumulated throughout the entire contract. This fine is deposited into the same FGTS account and the worker withdraws it along with the balance.

Example:

• Gross salary: R$ 5,000
• Length of employment: 3 years (36 months)
• Monthly FGTS deposits: R$ 5,000 x 8% = R$ 400
• Accumulated balance (without returns): R$ 400 x 36 = R$ 14,400
• 40% fine: R$ 14,400 x 40% = R$ 5,760
• Total FGTS to receive: R$ 14,400 + R$ 5,760 = R$ 20,160

In mutual agreement termination, the fine is 20% (R$ 2,880 in this example) and only 80% of the balance can be withdrawn (R$ 11,520).

Aviso previo (notice period) is the advance communication that the employment contract will be terminated. Both employer and worker must respect a minimum notice period so the other party can prepare.

Types of notice:

• Aviso previo trabalhado (worked notice): The worker continues working during the notice period. If dismissed, they have the right to reduce their workday by 2 hours daily or miss the last 7 consecutive days of the notice period
• Aviso previo indenizado (paid notice): The employer pays the notice period in cash and the worker does not need to work. The value equals the salary for the period

Calculating proportional notice:

Since Law 12,506/2011, the notice period has both a fixed and proportional component:

• Base: 30 days (for all workers)
• Proportional: + 3 days per year of service at the same company
• Maximum: 90 days (30 base + 60 proportional = 20 years)

Proportional notice table:

Years of service	Notice days
Less than 1 year	30 days
1 year	33 days
2 years	36 days
3 years	39 days
5 years	45 days
10 years	60 days
15 years	75 days
20 years or more	90 days

Important: Proportional notice is a right of the worker. If the worker resigns (pedido de demissao), they only need to serve 30 days of notice. The additional proportional days only apply when the employer dismisses the worker.

Calculation example:

• Salary: R$ 5,000
• Length of service: 5 years
• Notice period: 30 + (5 x 3) = 45 days
• Value of paid notice: R$ 5,000 / 30 x 45 = R$ 7,500

Beyond FGTS and notice, the termination includes other important items that make up the total amount to be received:

1. Ferias (vacation):

In Brazil, workers are entitled to 30 days of vacation for every 12 months worked (acquisition period). Upon termination, the following must be paid:

• Overdue vacation (ferias vencidas): Vacation already earned but not taken. Paid in dobro (double) if not granted within the legal period (Article 137 CLT). Value: salary + constitutional 1/3, multiplied by 2
• Proportional vacation (ferias proporcionais): Vacation proportional to time worked in the incomplete acquisition period. Calculated as: (months worked / 12) x salary + 1/3
• Constitutional third (1/3): The Federal Constitution (Article 7, XVII) guarantees that all vacation payments include an additional 33.33%. If vacation pay is R$ 5,000, the 1/3 is R$ 1,666.67, totaling R$ 6,666.67

2. Decimo terceiro salario (13th salary):

The 13th salary is a Christmas bonus equivalent to one monthly salary, paid in two installments (November and December). Upon termination, it is paid proportionally:

• Formula: (Months worked in the year / 12) x Salary
• A month counts as worked if the employee worked at least 15 days in that month
• Paid notice counts as time worked for the 13th calculation

3. Salary balance (saldo de salario):

These are the days worked in the termination month that have not yet been paid. Calculated by dividing the salary by 30 and multiplying by the days worked.

4. Pending overtime and additional pay:

Any overtime, night shift premium, hazard pay, or health hazard pay that has not been paid must be included in the termination.

Proportional vacation example:

• Salary: R$ 5,000
• Months worked in period: 8 months
• Proportional vacation: (8/12) x R$ 5,000 = R$ 3,333.33
• Constitutional 1/3: R$ 3,333.33 / 3 = R$ 1,111.11
• Total proportional vacation: R$ 4,444.44

The difference between being dismissed por justa causa (for cause) or sem justa causa (without cause) is enormous in financial terms. Let us examine each scenario in detail:

Demissao sem justa causa (without just cause):

The employer dismisses the worker without serious misconduct. The worker receives ALL rights:

• Salary balance
• Notice period (worked or paid, with proportional addition)
• Proportional 13th salary
• Proportional vacation + 1/3
• Overdue vacation + 1/3 (if any)
• 40% fine on FGTS
• Full FGTS withdrawal
• Unemployment insurance documentation

Demissao por justa causa (for just cause):

The employer dismisses the worker for committing one of the serious offenses listed in Article 482 of the CLT. The worker loses most rights:

• Only receives: salary balance and overdue vacation + 1/3
• Loses: notice period, proportional 13th, proportional vacation, 40% FGTS fine, FGTS withdrawal, unemployment insurance

Causes for justa causa (Article 482 CLT):

• Act of dishonesty (theft, fraud)
• Misconduct or improper behavior
• Unauthorized regular business dealings
• Final criminal conviction
• Negligence (repeated carelessness)
• Habitual drunkenness or intoxication on duty
• Violation of company secrets
• Insubordination or indiscipline
• Job abandonment (30+ consecutive days)
• Acts offensive to honor (physical or verbal assault)
• Constant gambling
• Loss of professional qualification

Financial comparison with R$ 5,000 salary and 3 years of service:

Item	Sem justa causa	Justa causa
Salary balance (15 days)	R$ 2,500	R$ 2,500
Paid notice (39 days)	R$ 6,500	R$ 0
Proportional 13th (8 months)	R$ 3,333	R$ 0
Proportional vacation + 1/3	R$ 4,444	R$ 0
40% FGTS fine	R$ 5,760	R$ 0
FGTS withdrawal	R$ 14,400	R$ 0
Approximate total	R$ 36,937	R$ 2,500

The difference can be more than R$ 34,000 in this example. This is why justa causa should only be applied in serious, well-documented cases.

Seguro-desemprego (unemployment insurance) is a temporary benefit paid by the federal government to workers dismissed sem justa causa. It is not paid directly in the termination, but the employer must provide the necessary documentation for the worker to apply.

Requirements to apply for unemployment insurance:

• 1st application: Must have worked at least 12 months in the last 18 months before dismissal
• 2nd application: Must have worked at least 9 months in the last 12 months
• 3rd application onward: Must have worked at least 6 months before dismissal
• Must not have sufficient personal income for self-support
• Must not be receiving other social security benefits (except death pension or accident aid)

Number of installments:

Months worked	Installments
6 to 11 months	3 installments
12 to 23 months	4 installments
24 months or more	5 installments

Calculating installment amounts (2026):

The value is calculated based on the average of the last 3 salaries:

Average salary range	Calculation
Up to R$ 2,041.39	Average salary x 0.8 (80%)
R$ 2,041.40 to R$ 3,402.65	R$ 1,633.10 + (excess x 0.5)
Over R$ 3,402.65	Fixed amount of R$ 2,313.74 (ceiling)

Application deadline:

• From the 7th to the 120th day after dismissal (formal worker)
• Apply at Ministry of Labor offices, SINE, Caixa Economica Federal, or through the Carteira de Trabalho Digital app

Important: In mutual agreement termination (rescisao por acordo), the worker is not entitled to unemployment insurance. It is only granted for dismissal sem justa causa and rescisao indireta.

The CLT establishes strict deadlines for paying termination amounts. Non-compliance generates fines for the employer.

Termination payment deadlines (Article 477 CLT):

• The employer has up to 10 calendar days from the contract's end to pay all termination amounts and deliver documents
• This deadline applies regardless of termination type (sem justa causa, justa causa, resignation, mutual agreement)
• The deadline covers: payment of all amounts, delivery of TRCT (Employment Contract Termination Statement), unemployment insurance forms, and eSocial notification

Late payment fine (Article 477, paragraph 8):

If the employer fails to pay within the 10-day period, they must pay a fine equivalent to one month's salary. This fine is in addition to the termination amounts.

Homologation:

Before the 2017 Labor Reform, contracts lasting more than 1 year needed to be homologated (ratified) at the relevant union. After the reform:

• Union homologation is no longer mandatory
• However, many collective agreements still require it
• Workers can voluntarily seek homologation for added security
• The union verifies that all amounts are correct and no rights have been suppressed

Documents the employer must provide:

• TRCT (Employment Contract Termination Statement)
• FGTS withdrawal authorization (Chave de conectividade social)
• Unemployment insurance forms (SD form)
• Updated CTPS (physical or digital work card)
• Professional Profile for Social Security (PPP) if applicable
• Dismissal Communication (CD)

Calculate your complete termination with our Brazil rescisao calculator and verify that the amounts your employer offers are correct.

Let us walk through a step-by-step example of a termination sem justa causa to understand the complete calculation:

Case details:

• Gross salary: R$ 5,000
• Admission date: 03/10/2023
• Dismissal date: 03/16/2026
• Length of service: 3 years and 6 days
• Type: Dismissal sem justa causa with paid notice
• Overdue vacation: None (took the last period's vacation)
• Last day worked: 03/16/2026 (16 days in March)

Step 1: Salary balance

• 16 days worked in March
• R$ 5,000 / 30 x 16 = R$ 2,666.67

Step 2: Paid notice

• 30 base days + (3 years x 3 days) = 39 days
• R$ 5,000 / 30 x 39 = R$ 6,500.00
• Notice projection: notice extends to 04/24/2026

Step 3: Proportional 13th salary

• Months worked in 2026 (including notice projection): January, February, March, April = 4 months
• (4/12) x R$ 5,000 = R$ 1,666.67

Step 4: Vacation + 1/3

• Last acquisition period: 03/10/2025 to 03/16/2026 = 12 months + projection
• Full period vacation: R$ 5,000 + R$ 1,666.67 = R$ 6,666.67
• Proportional vacation (new period with notice): (1/12) x R$ 5,000 = R$ 416.67 + 1/3 = R$ 555.56
• Total vacation: R$ 7,222.23

Step 5: FGTS + 40% Fine

• Monthly deposits: R$ 400 x 36 months = R$ 14,400 (approximate)
• FGTS on termination amounts: ~R$ 880
• Estimated total balance: ~R$ 15,280
• 40% fine: R$ 15,280 x 40% = R$ 6,112.00

Termination summary:

Item	Amount
Salary balance	R$ 2,666.67
Paid notice	R$ 6,500.00
Proportional 13th	R$ 1,666.67
Vacation + 1/3	R$ 7,222.23
40% FGTS fine	R$ 6,112.00
FGTS withdrawal	R$ 15,280.00
Estimated gross total	R$ 39,447.57

Deductions (INSS and IRRF on taxable amounts) will reduce the net value. Use our rescisao calculator to get the exact net amount and our percentage calculator to analyze each component.