Severance pay in Brazil: what you receive for each type of dismissal

*Severance pay (verbas rescisórias) is the set of amounts the employer must pay when an employment contract ends, and what you receive depends on how the contract ended.* Payment is due within 10 days of the end of the contract. Late payment triggers a penalty equal to one month's salary (art. 477 of the CLT, Brazil's Consolidated Labor Laws).

Quick summary

• Payment deadline: 10 days from the end of the contract (art. 477, §6).
• Late payment: penalty of one month's salary owed to the worker (art. 477, §8).
• Undisputed amounts not paid by the first hearing: +50% (art. 467).
• Since 2017, validation of the termination at the union (homologação) is no longer mandatory.

What you receive for each type of termination

• Salary balance — Dismissal without cause: ✅ · Resignation: ✅ · Dismissal for cause: ✅ · Mutual agreement (art. 484-A): ✅
• Accrued vacation + 1/3 — Dismissal without cause: ✅ · Resignation: ✅ · Dismissal for cause: ✅ · Mutual agreement (art. 484-A): ✅
• Proportional vacation + 1/3 — Dismissal without cause: ✅ · Resignation: ✅ · Dismissal for cause: ❌ · Mutual agreement (art. 484-A): ✅
• Proportional 13th salary — Dismissal without cause: ✅ · Resignation: ✅ · Dismissal for cause: ❌ · Mutual agreement (art. 484-A): ✅
• Paid notice in lieu — Dismissal without cause: ✅ full · Resignation: ❌ (must be worked or may be deducted) · Dismissal for cause: ❌ · Mutual agreement (art. 484-A): ✅ half
• FGTS penalty (FGTS is the Severance Indemnity Fund, a mandatory employer-funded account) — Dismissal without cause: 40% · Resignation: ❌ · Dismissal for cause: ❌ · Mutual agreement (art. 484-A): 20%
• FGTS withdrawal — Dismissal without cause: 100% · Resignation: ❌ · Dismissal for cause: ❌ · Mutual agreement (art. 484-A): up to 80%
• Unemployment insurance — Dismissal without cause: ✅ (if requirements are met) · Resignation: ❌ · Dismissal for cause: ❌ · Mutual agreement (art. 484-A): ❌

Constructive dismissal (rescisão indireta, art. 483) — when the employer commits a serious breach, such as paying wages late or failing to deposit FGTS — gives the worker the same amounts as a dismissal without cause, but it usually has to be recognized by the Labor Court.

Notice period: how many days

Notice is 30 days for up to 1 year with the company, plus 3 days per complete year of service, up to a maximum of 90 days (Law 12,506/2011). Paid notice in lieu counts as length of service for vacation and the 13th salary.

Dismissal for cause: when it can be applied

Only in the situations listed in art. 482 of the CLT — such as dishonesty, negligence (desídia), habitual drunkenness on duty, job abandonment and insubordination. The employer must prove the misconduct, and the penalty must be proportionate and immediate. An unjustified dismissal for cause can be reversed in court.

Unemployment insurance: requirements

• Having been dismissed without cause (or through recognized constructive dismissal);
• 1st application: salary received in at least 12 of the last 18 months;
• 2nd application: 9 of the last 12 months;
• From the 3rd application on: the 6 months immediately before dismissal;
• Deadline to apply: from the 7th to the 120th day after dismissal, through the Digital Work Card app or gov.br.

Step by step to check your severance

1. Identify the type of termination recorded in the termination form (TRCT).
2. Check the payment date: count 10 days from the end of the contract.
3. Add up the amounts according to the table above and compare them with the TRCT.
4. Check your FGTS in the Caixa app: all deposits and the penalty must appear.
5. Check the termination entry in the Digital Work Card and the unemployment insurance notice, if applicable.
6. If something is wrong, ask the employer in writing to correct it and keep the reply. If the problem persists, contact the union, file a complaint with the Ministry of Labor or bring a labor claim — even without a lawyer.

Frequently asked questions

What is the deadline for the employer to pay severance?

10 days from the end of the contract, for any type of termination (art. 477, §6).

What if the employer pays late?

It must pay the worker a penalty equal to one month's salary (art. 477, §8), unless the worker caused the delay.

Can someone who resigns withdraw their FGTS?

No. The balance stays in the account and can only be withdrawn in other situations provided by law, such as retirement, buying a home or after 3 years without an FGTS-covered job.

Does someone who opted for the birthday withdrawal (saque-aniversário) receive FGTS on dismissal?

As a rule, they receive the 40% penalty but not the account balance. Check the current rules in the FGTS app, as they may change.

Do I need to have the termination validated at the union?

It has not been mandatory since the 2017 Labor Reform, but the category's collective agreement may provide for union assistance.

Do temporary workers receive the same amounts?

Not exactly. See the specific rules in the guide on temporary work.

Read more in this series

• Temporary work: rights, deadlines and rules
• CLT worker rights: complete guide
• Labor Court: how it works and how to file a claim
• Jus postulandi: how to sue without a lawyer
• Index: complete guide to labor rights