What are the Vacation and Leave Entitlements in Brazil?

Brazilian labor law offers comprehensive regulations to ensure employees are entitled to rest periods and paid vacations, reflecting the importance of work-life balance. These laws are primarily governed by the Consolidation of Labor Laws (CLT) and provide detailed guidelines on annual leave and holidays.

1. Annual Leave Entitlement

Eligibility: Employees in Brazil are entitled to 30 days of paid vacation after completing 12 months of continuous service with the same employer. This period is referred to as the “acquisition period.”
Minimum Leave Duration:
- 30 days if the employee has fewer than 5 days of absence during the year.
- 24 days if the employee has 6–14 days of absence.
- 18 days if the employee has 15–23 days of absence.
- 12 days if the employee has 24–32 days of absence.

2. Scheduling and Usage

Vacation Start Date: The employer must grant the vacation within 12 months following the acquisition period, called the "concession period." Employers have the discretion to decide when employees take their vacation but must provide at least 30 days' notice.
Vacation Periods: Annual leave can be split into a maximum of three periods. However:
- One of these periods must be 14 consecutive days.
- The other two periods must each be at least 5 consecutive days.
Restrictions: Leave cannot start on a Friday, Saturday, or Sunday, nor can it begin within two working days before a paid rest day or a public holiday.

3. Vacation Pay (Remuneração de Férias)

Payment Before Vacation: Employers must pay the employee’s vacation salary at least two days beforethe vacation starts. This payment includes:
- The normal monthly salary for the vacation period.
- An additional payment equivalent to one-third of the employee’s regular monthly salary, as mandated by Brazilian law.

4. Accrual and Carryover

Accrual: Employees accrue annual leave over a 12-month period, and the leave must be taken within 12 months after it’s earned.
Carryover: If the employer fails to grant the vacation within the concession period, they are required to pay double the salary for the corresponding vacation days.

5. Selling Vacation Days (Abono Pecuniário)

Cash Conversion: Employees can request to "sell" up to one-third of their vacation days (10 days) to the employer for the equivalent salary. This request must be made within 15 days after the end of the acquisition period, and the employer is obligated to comply.

6. Unused and Pro-Rated Vacation

Unused Vacation: If an employee leaves the company before completing a full year, they are entitled to a pro-rata payment for the unused vacation days accrued during their employment.
Vacation Accumulation: Employers who delay granting vacations beyond the required period must pay the employee double the salary for the delayed vacation days.

7. National and State Holidays

In addition to annual leave, Brazil observes national and state holidays. Employees are generally not required to work on these days unless necessary, in which case they are entitled to extra compensation.

In this article...

Brazil