Function bonus in Brazil: can the employer take it away?

Yes, as a rule. Since the 2017 labor reform, the CLT says that returning an employee to their permanent role, with or without just cause, does not guarantee keeping the function bonus, regardless of how long they held the position (art. 468, § 2). The old rule, TST Precedent 372, protected those who had received the bonus for 10 years or more.

Quick summary

• Today: the employer can remove the bonus when returning the employee to the former role.
• Before Nov 11, 2017: those who already had 10 years of bonus on that date may be entitled to keep it, according to part of the case law.
• Bonus without a change of role: removing the amount while keeping the same duties is a pay cut.
• Collective agreement: may set more favorable rules.
• Reflexes: while paid regularly, the bonus counts as salary for vacation, 13th salary and FGTS.

What the law says

CLT art. 468 forbids contract changes that harm the employee. The exception is returning to the permanent role after holding a position of trust: this is not an unlawful change, and § 2, added by Law 13,467/2017, made clear that the bonus need not be kept.

When the removal can be challenged

1. No actual reversal: the employer removes the bonus, but the employee keeps managing or holding the same responsibilities.
2. Acquired right: 10 or more years of bonus completed before the reform. Courts still decide this differently.
3. Collective or internal rule guaranteeing incorporation.
4. Discrimination or retaliation behind the reversal.

Frequently asked questions

I have received a function bonus for 12 years. Can I lose it?

Under the current rule, yes, if you return to the former role. If the 10 years were completed before November 2017, some decisions guarantee keeping it.

Does the bonus count toward vacation and 13th salary?

Yes, while it is paid regularly.

Can the employer remove the bonus and keep my management duties?

No. That is an unlawful pay cut and the differences can be claimed.

Read more in this series

• Salary reduction: when it is allowed
• Working outside your role
• Equal pay
• Index: complete guide to labor rights

Topic: this guide is part of Pay and benefits, with all the guides on the subject.