CLT stands for Consolidação das Leis do Trabalho, meaning "Consolidation of Labor Laws." Enacted in 1943, it is Brazil's foundational labor legislation that consolidates all employment regulations into a single code. Employees hired under CLT rules are called "celetistas" and receive the full range of Brazilian labor protections.
Key CLT Provisions
The CLT establishes a 44-hour work week (8 hours daily, 4 hours on Saturday or distributed), 30 calendar days of annual vacation plus a one-third vacation bonus, 13th salary, FGTS contributions, maternity leave (120 days), paternity leave (5 days, extended to 20 in some programs), and overtime pay at 50% premium (100% on holidays and Sundays).
2017 Labor Reform
Brazil's 2017 labor reform (Reforma Trabalhista) introduced significant changes to the CLT, including allowing negotiated agreements to override certain legal provisions, creating new contract types (intermittent work), enabling vacation to be split into three periods, and introducing termination by mutual agreement with reduced FGTS penalty (20% instead of 40%).
EOR Relevance
An EOR in Brazil employs workers under CLT, ensuring full compliance with all labor code requirements. This includes proper contract registration with the Ministry of Labor, maintaining the digital work card (CTPS digital), and managing the extensive benefits package mandated by CLT. This is essential for foreign companies that find Brazil's labor laws among the most complex in the world.