Termination by agreement in Brazil (art. 484-A): what you receive, 80% FGTS and the risks of the "deal"

Termination by agreement, created by the Labor Reform (CLT, art. 484-A — the CLT is Brazil's Consolidated Labor Laws), lets employee and employer end the contract by mutual agreement. The worker receives half the notice paid in lieu and half the FGTS penalty (20%), can withdraw up to 80% of the FGTS balance and receives all other amounts in full — but has no right to unemployment insurance.

Quick summary

• Notice paid in lieu: half.
• FGTS penalty: 20% (instead of 40%). FGTS is the Severance Indemnity Fund.
• FGTS withdrawal: up to 80% of the balance.
• Vacation + 1/3, 13th salary and salary balance: in full.
• Unemployment insurance: not entitled.
• Must be voluntary: no one can be forced to accept.

Quick comparison

• Dismissal without cause — Notice: full · FGTS penalty: 40% · FGTS withdrawal: 100% · Unemployment insurance: yes
• Agreement (484-A) — Notice: half · FGTS penalty: 20% · FGTS withdrawal: 80% · Unemployment insurance: no
• Resignation — Notice: must be worked · FGTS penalty: no · FGTS withdrawal: no · Unemployment insurance: no

See the full table in Severance pay.

The old "deal" is illegal

Before 2017, it was common for the employer to "dismiss" the worker so they could withdraw FGTS and receive unemployment insurance, with the penalty returned under the table. This is fraud: it can lead to repayment of unemployment insurance and liability for both. Art. 484-A exists precisely to provide a legal route for agreements.

When pressure becomes a problem

• If the employer wanted to dismiss and imposed the agreement to pay less, the worker can ask the court to convert it into a dismissal without cause, with the differences.
• Keep messages and emails showing who took the initiative.

Step by step

1. Consider whether the proposal pays off compared with a possible dismissal without cause or constructive dismissal.
2. Ask for the proposal in writing, with the amounts.
3. Sign only if you agree and check the termination code on the TRCT — see TRCT.
4. Check the 80% withdrawal in the FGTS app.

Frequently asked questions

Does someone who agrees to terminate receive unemployment insurance?

No. The law expressly excludes unemployment insurance in this type of termination.

Does the agreement need union approval?

No. A term signed by both parties is enough, unless a collective rule says otherwise.

Read more in this series

• Resignation: what you receive
• Severance pay: what you receive for each dismissal
• TRCT: how to check the termination form
• FGTS: how to check it, when to withdraw and the 40% penalty
• Index: complete guide to labor rights