How does Brazil probation work in 2026?
Brazil sets a hard statutory cap: 3 months maximum under CLT Art. 445. Either party can end a periodo de experiencia with no advance notice and no severance penalty. That is the sharpest contrast with the post-probation rules, where dismissal without cause triggers a 40% FGTS penalty and full notice.
· Brazil guide
Illustration · Sao Paulo, Brazil
Brazil probation is the periodo de experiencia. The law caps it at 3 months. Either side can end it with no advance notice and no severance payment.
That changes after probation ends. Post-probation dismissal without cause requires 30 days notice and a 40% FGTS penalty on the full fund balance.
Protection against discriminatory dismissal applies from day one. There is no qualifying service period. The FGTS fund accrues from the first month, including during probation.
What does Brazil probation actually do?
Probation in Brazil is a separate contract type under the CLT.
It is not a clause inside a permanent contract. It is a fixed-term trial contract.
It ends automatically at the agreed date. Or either party can end it early with no notice and no penalty.
The periodo de experiencia is governed by CLT Art. 445. What it modifies:
- No notice required. Either party ends the contract during probation with zero advance notice. The 0 days notice rule applies inside the probation window.
- No FGTS penalty. The 40% penalty on the FGTS fund only applies to dismissal without cause after probation ends. Early termination of a probation contract carries no multa.
- Same daily protections. Discrimination protections, FGTS deposits, social security, and statutory leave all apply from day one, including during probation.
- Fixed end date. The contract expires at the agreed date unless the employer explicitly converts it to a permanent (CLT indeterminado) contract.
What probation does not suspend:
- FGTS deposits: the employer deposits 8% of gross salary into the employee's FGTS account every month, starting from month one.
- Protection against dismissal for discriminatory reasons. Brazil has no qualifying period for this protection.
- The obligation to pay all wages and benefits earned up to the termination date.
How long should Brazil probation be?
The legal maximum is 3 months. This is a hard cap in CLT Art. 445.
You cannot agree a longer probation by contract or by any arrangement.
In practice, many employers use a two-stage structure within the 90-day ceiling.
Typical probation structures used by employers in Brazil:
| Structure | First period | Renewal | Total |
|---|---|---|---|
| Single period (most common) | 90 days | None | 90 days |
| Two-stage (commonly used) | 45 days | 45 days | 90 days |
| Short trial | 30 days | Up to 60 days | Up to 90 days |
The CLT permits one renewal of the probation contract, provided the total does not exceed 3 months. The renewal must be agreed before the first period expires. A second renewal is not allowed.
The two-stage structure gives the employer a natural decision point at 45 days. If the hire is clearly not working, the employer can end the first stage without entering the renewal. This avoids the automatic conversion to a permanent contract that happens if no action is taken when the contract expires.
Automatic conversion to permanent employment
If the employee continues to work after the probation contract expires and no written permanent contract is issued, the CLT treats the employment as a standard indeterminate contract. At that point the full post-probation notice rules and the 40% FGTS penalty apply to any future without-cause dismissal. Employers must act before the end date, not after.
Fair procedure during probation: the trap most employers fall into
Dismissal during probation requires no advance notice and no FGTS penalty.
But protection against discriminatory dismissal applies from day one.
Brazil has no qualifying service period. An employee dismissed on day two can bring a claim if the reason was discriminatory.
What "dismissal without penalty" means in Brazil:
- No notice payment. The employer owes nothing beyond wages and benefits earned to date.
- No FGTS multa. The 40% penalty does not apply during the probation window.
- Final pay (verbas rescisorias) is still due within 10 days of the termination date. This includes accrued leave, proportional 13th salary, and any outstanding wages.
What "dismissal without penalty" does not mean:
- Dismissal for discriminatory reasons is still unlawful. Terminating for pregnancy, union membership, disability, or filing a workplace complaint is illegal regardless of probation status.
- The employer cannot rely on probation as a shield against a discrimination claim. Courts look at the real reason for termination.
Practical steps to keep a probation dismissal defensible:
- Document the performance or fit issue. A written note of what was observed and when, kept in the employee file.
- Make the reason clear and consistent. The stated reason for ending the probation contract must be the actual reason.
- Confirm termination in writing. A formal term de rescisao contratual, signed and dated.
- Pay the verbas rescisorias on time. Accrued salary, proportional 13th salary, and accrued leave by the 10 days deadline.
- Register the termination with the CTPS. The employee's work record (Carteira de Trabalho) must be updated on the day of termination or the following working day.
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Document the issue
Write down the performance or fit concern with a date. Keep it in the employee file from the moment it is identified.
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Confirm the decision in writing
Issue a formal term de rescisao contratual, signed and dated. The employee receives a copy.
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Update the CTPS
Register the termination in the employee's Carteira de Trabalho on the day it occurs or the next working day.
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Calculate and pay the verbas rescisorias
All accrued wages, proportional 13th salary, and accrued leave must be paid within the statutory deadline.
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Close the FGTS record
Notify the FGTS fund that the probation contract has ended. No penalty applies. The fund balance remains with the employee.
Probation extensions: when and how
The CLT allows one renewal within the 90-day ceiling.
You cannot extend beyond 3 months total under any arrangement.
A renewal agreement must be in writing and signed before the first period ends.
When a renewal makes sense:
- The first period was shorter than 90 days and the employer needs more time to assess.
- A project or client situation interrupted the assessment during the first period.
- The employee is close to meeting the role criteria but not there yet, and a further 30 to 45 days would be a genuine test.
When a renewal does not make sense:
- Performance is clearly not working. Extending adds cost and delays the inevitable.
- The first period was already the full 90 days. No further extension is permitted.
- The employer is using the renewal period to delay a difficult decision. Courts view this with suspicion if a discrimination claim follows.
How to renew properly:
- Document the reasons for renewal. What specific criteria will the employee be assessed against in the second period?
- Issue a written renewal agreement before the first period expires. Both parties sign.
- Set a clear end date. Total period including the first stage must not exceed 3 months.
- Act before the new end date. If the employee continues working after expiry without a signed permanent contract, the CLT converts the relationship to a permanent one automatically.
The 30-60-90 day onboarding standard
Good Brazil onboarding maps directly onto the probation period.
The statutory cap is 3 months, so the full 30-60-90 framework fits exactly within the trial window.
The day-90 review is the probation outcome decision, not a separate milestone.
| Phase | Day range | Manager focus | Employee focus |
|---|---|---|---|
| Orientation | Days 1 to 30 | Introductions, systems access, CLT rights briefing, FGTS registration, CTPS update | Learn the role, build relationships, understand Brazilian workplace norms |
| Contribution | Days 31 to 60 | First project ownership, structured feedback, renewal decision if using 45-day structure | Deliver first independent work, clarify expectations, flag concerns early |
| Independence | Days 61 to 90 | Full role scope, probation outcome decision, permanent contract preparation if confirming | Demonstrate role-readiness, participate in probation review meeting |
The probation review at day 90 is the conversion point. The employer must either issue a signed permanent contract or end the probation contract on the expiry date. There is no informal continuation: the CLT converts the employment to permanent if the employee keeps working past the expiry date without any written action.
Brazil onboarding admin that must happen in the first days:
- CTPS (Carteira de Trabalho e Previdencia Social) registration on day one or the next working day.
- FGTS account opened and first deposit registered. The 8% monthly deposit starts from the first month.
- INSS social security registration. Contributions begin from the first payroll run.
- Vale-Transporte (transport allowance) set up if the employee uses public transport. This is a common benefit that applies regardless of probation status.
How does Teamed handle Brazil probation and onboarding?
Teamed becomes your legal employer of record in Brazil for from $599 per employee per month, with zero FX mark-up in any currency.
The periodo de experiencia, CTPS registration, FGTS setup, and all CLT admin run on one platform from the first offer letter.
Real HR and legal experts handle your Brazil hires from the first contract draft through every review meeting and probation outcome. An actual person, not a chatbot or a pooled queue. There is no setup fee and no exit fee. Employer cost passes through at cost, itemised on every invoice.
Teamed's standard Brazil service for probation and onboarding:
- CLT-compliant periodo de experiencia contract with a configurable period up to 3 months, or a two-stage structure (45 plus 45 days) if preferred
- CTPS update on day one, FGTS account opening, and INSS registration handled by Teamed
- Renewal reminder issued to the client at day 30 (or day 15 for a 45-day first stage) so no contract expires by accident
- Probation review template provided to client managers at the relevant checkpoint
- If ending the probation contract: Teamed issues the term de rescisao, calculates the verbas rescisorias, and pays the final settlement within the 10 days CLT deadline
- If converting to permanent: Teamed issues the new CLT indeterminate contract and transitions the payroll record without disruption
The split is clear. The client owns the relationship and the performance assessment. Teamed owns the CLT procedure, documentation, and legal-employer mechanics. That combination keeps probation outcomes clean without burdening the client with Brazilian labour admin.
Key source: L&E Global Brazil employment law overview and CMS Law Brazil dismissals guide.
Frequently asked questions
What is the maximum probation period in Brazil?
The CLT sets a hard statutory maximum of 3 months (90 days). This is not a convention like in the UK: it is a legal ceiling. A contract that runs longer than 90 days is not a valid fixed-term probation contract. Many employers use a two-stage structure, for example 45 days with a single renewal of 45 days, to build in an earlier decision point.
Do you have to give notice to end a Brazil probation contract?
No. Either party can end the periodo de experiencia at any time with no advance notice. The notice requirement during probation is 0 days. This is the main practical benefit of the probation window. Compare that with post-probation dismissal without cause, which requires 30 days notice (base rate) and a 40% FGTS penalty.
Does the FGTS apply during probation?
Yes. The employer deposits 8% of gross salary into the employee's FGTS fund account every month, starting from the first month of employment, including during the probation period. The 40% penalty multa on the FGTS balance only applies if the employer dismisses a permanent employee without cause. Ending a probation contract lawfully at or before the expiry date does not trigger the penalty.
Can a Brazil probation contract be extended?
The CLT permits one renewal, provided the total period does not exceed 3 months. The renewal must be agreed in writing before the original contract expires. A second renewal is not permitted. If the employee works past the probation expiry date with no written action, the CLT automatically converts the employment to a permanent indeterminate contract.
What final payments are owed when ending a probation contract in Brazil?
All wages and benefits earned up to the termination date must be paid within 10 days, regardless of whether the contract ends during or at the end of probation. This includes accrued salary, proportional 13th salary (Decimo Terceiro) for the months worked, and any accrued annual leave not taken. There is no FGTS penalty, but the FGTS fund balance remains available to the employee.
Brazil is where clients who expect an at-will probation window get a surprise. The period de experiencia ends cleanly, yes. But discriminatory dismissal is illegal from day one, the CTPS must be updated immediately, and the verbas rescisorias clock starts ticking the moment you end the contract. Speed and accuracy matter here. The CLT does not tolerate late final pay.
Brazil gives you a clean 3 months window with no notice and no FGTS penalty.
But the CLT does not pause for probation. FGTS deposits, CTPS registration, and discrimination protection all start on day one.
When the window closes, you either convert or you end it. If you do nothing, the CLT converts it for you.
