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If the employee is dismissed for good cause, he or she will be entitled only to the outstanding salary, accrued vacation and the additional one-third bonus in respect of the accrued vacation. Double accrued vacation remuneration is also due when the employer has failed to allow the employee to take the annual vacation during the twelve months following the acquisition period.

The employer may terminate a labor contract without notice in instances of grave fault, such as the employee violated basic duties (fighting, drunk, abused financial trust or benefits); the employee has committed a serious criminal offense, etc.

Dismissal: In the case of termination by the employer without Good Cause (Unfair Dismissal), the employee has the rights of:
(a) outstanding salary for the days worked;
(b) 30 days' prior notice;
(c) proportionate 13th salary;
(d) one-third bonus in respect of vacation;
(e) double accrued vacation, if applicable; and
(f) release of the FGTS deposits, with a fine of 50%

The employment contract and collective bargaining agreement may provide for other benefits, which must also be considered.

The Employment Agreement
The Labor Code of Brazil requires that each employee will be employed under the terms of an employment agreement. Execution of the agreement in Portuguese is recommended.

A fixed term agreement may not exceed two years, and may be renewed only once. A provisional agreement may not exceed ninety days and may not be renewed. A provisional agreement is the most common means of effecting a period of probation.

An employment agreement must be registered and reported within 48 hours of the commencement of the relationship, clearly entered in the work book of the employee and the records of the employer. Relative to compensation for services rendered, Brazilian labor law follows an equality principle under which when employees perform in positions with the same job duties and responsibilities, they must receive identical compensation unless there is a difference of seniority between or among them of two or more years.

Terminating the Employment Relationship
The termination of an employment contract may occur, as a general rule, either by decision of the employer (dismissal of the employee) or by decision of the employee (resignation). In the case of dismissal of an employee, it may be either for good cause or by unfair dismissal. When a fixed term agreement exists, the employer may terminate the agreement prior to the normal expiration date by the payment of one half of the remaining compensation due under the agreement.