Unpaid leave in Brazil: how it works and what you lose

Unpaid leave is not a right under Brazil's CLT: it exists by agreement between employee and employer, preferably in writing. During the leave, the contract is suspended: there is no salary, FGTS deposit or INSS contribution, and the period does not count toward vacation and 13th salary. The employer cannot impose the leave on the employee.

Quick summary

• Nature: an agreement between the parties, at the employee's initiative.
• Effects: no salary, FGTS, INSS, vacation or 13th salary for the period.
• Return: the employee comes back to the same job and pay, with the category's raises.
• INSS: you can contribute as an optional contributor to keep your insured status.
• Imposed leave: if the employer forces it, it is an unlawful suspension, and wages can be claimed.

How to make the agreement

1. Request it in writing, with start and end dates.
2. Agree on whether the health plan continues and who pays.
3. Agree on whether it can be extended and how the return works.
4. Keep a copy signed by both parties.

INSS precautions

Without contributions, a person keeps insured status for a grace period, usually 12 months. For long leaves, it is worth contributing as an optional contributor to keep coverage for illness or accidents.

Vacation after the leave

Because the contract is suspended, the leave does not count toward the vacation accrual period: the count stops and resumes on return. Check the dates with HR before leaving.

Frequently asked questions

Can my employer put me on unpaid leave?

Not unilaterally. That would shift the business risk to the employee and can be challenged in court.

Can I work elsewhere during the leave?

It depends on the agreement and on any exclusivity or non-compete clause.

Can unpaid leave be used to study abroad?

Yes, if the employer agrees. Set the return date in writing.

Read more in this series

• Paid vacation under the CLT
• Health plan after dismissal
• CNIS: check your INSS contributions
• Index: complete guide to labor rights

Topic: this guide is part of Health, safety and leave at work, with all the guides on the subject.