Loss of regular overtime in Brazil: compensation under TST Precedent 291
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If an employer cuts overtime worked for over a year, it owes compensation: one month of the cut hours per year of overtime. How TST Precedent 291 works.
An employer may stop requiring overtime, but if it was worked regularly for at least a year, it must pay compensation. Under TST Precedent 291, the amount is one month of the cut hours for each year, or fraction of 6 months or more, in which the overtime was worked.
Quick summary
- When it applies: regular overtime for 1 year or more, removed fully or partly.
- Amount: monthly average of the cut hours over the last 12 months × hourly rate on the day of the cut × years of overtime.
- Fraction: 6 months or more counts as one more year.
- Partial cut: compensation is proportional to the hours removed.
- Time limit to claim: up to 2 years after the contract ends.
How to calculate it
- Add up the overtime of the last 12 months and divide by 12 to get the monthly average.
- Multiply by the overtime hourly rate on the date of the cut (with the premium).
- Multiply by the number of years with regular overtime, counting fractions of 6 months or more as one year.
Example: an average of 20 overtime hours a month, an overtime rate of R$ 30 and 3 years and 7 months of overtime. Compensation: 20 × R$ 30 × 4 = R$ 2,400.
What does not lead to compensation
- Occasional overtime, without regularity.
- A reduction that does not meaningfully change the average.
- End of the contract: in that case overtime reflects into severance pay, not Precedent 291.
Frequently asked questions
Can my employer cut my overtime?
Yes. What the law guarantees is compensation when the overtime was regular for a year or more.
Is INSS deducted from the compensation?
Because it is compensation, as a rule neither INSS nor FGTS applies.
Does cutting half of my overtime count too?
Yes. A partial cut leads to compensation proportional to the hours removed.
Calculate: use the Overtime calculator — free, no registration.
Read more in this series
- Overtime: how to calculate and claim it
- Salary reduction: when it is allowed
- Time bank: rules and deadlines
- Index: complete guide to labor rights
Topic: this guide is part of Working hours, with all the guides on the subject.
Official sources consulted
Informational content, updated in October 2026. This does not replace an individual analysis of your case.
Informational content produced by the Human Case editorial team based on official public sources. Does not replace individual advice.
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