Termination Before the End of the Probationary Period

In Brazil, the probationary period is governed by the Consolidation of Labor Laws (CLT), specifically outlined in Article 451. Here’s a detailed look at what happens if an employee is terminated before this period concludes:

Probationary Contract Rules

According to Article 451 of the CLT:

- Compensation for Early Termination: If an employer ends a probationary contract early, they must compensate the employee for half of the remaining days of the contract. For instance, if 30 days are left in the probationary period, the employer is required to pay for 15 days as compensation.

Probationary Period Overview

In Brazil, the probationary period typically lasts up to 90 days and can be divided into two 45-day intervals. This phase allows both the employer and employee to assess their fit within the role and organization.

Key Aspects of Early Termination

1. Notice Period: Employers are not obligated to provide notice for dismissal during the probationary period unless specified in the employment contract.

2. Compensation: Should termination occur before the probationary period ends, the employer must pay compensation equivalent to half of the remaining contract days.

3. Employee Entitlements: Beyond the compensation for the remaining days, employees are entitled to their salary balance for the days worked, proportional vacation pay plus one-third, a proportional 13th salary, and access to their FGTS (Severance Indemnity Fund) without incurring the 40% fine.

Understanding these provisions helps both employers and employees navigate the early termination of probationary contracts while ensuring compliance with Brazilian labor laws.