HR, PEO & Employer of Record (EOR) Services in Brazil

Introduction

Brazil stands as Latin America’s largest economy and a strategic hub for regional expansion, offering access to a vast consumer market of over 200 million people. With strengths in technology, agribusiness, energy, and a rapidly evolving digital ecosystem, the country presents diverse opportunities for foreign investors. While labor and tax regulations are complex, businesses that navigate them effectively can tap into one of the most dynamic growth markets in the world.

EOR & PEO Solutions in Brazil

If you’re looking to hire employees in Brazil without setting up a legal entity, using an Employer of Record (EOR) like Empleyo is the simplest and most compliant path forward. An EOR in Brazil acts as the official legal employer on your behalf, managing everything from payroll and HR administration to employment contracts and statutory employee benefits.

This model allows you to expand into Brazil quickly, while remaining fully compliant with local labor laws without the complexity or cost of registering a local entity.

What Is an Employer of Record in Brazil?

An Employer of Record Brazil (also known as an EOR provider) enables businesses to hire and onboard Brazil employees without having to incorporate in-country. The EOR manages:

You continue to oversee your team’s day-to-day tasks, while the EOR service handles legal obligations as the official employer on paper.

What’s the Difference Between EOR and PEO?

A Professional Employer Organization (PEO) typically supports businesses that already have a registered entity in Brazil, offering co-employment solutions for HR, payroll, and benefits. An EOR, however, is ideal when you don’t have a legal presence in Vietnam but still want to hire full-time staff.

Whether you choose an EOR or PEO depends on your Brazil hiring strategy, budget, and long-term plans for the market.

Benefits of Using an EOR Service in Brazil

By using an EOR solution, companies can confidently build their team in Brazil, access top talent in Brazil, and stay focused on business growth without getting tangled in bureaucracy.

Hiring in Brazil

Brazil is a thriving market with a growing pool of skilled professionals, making it an ideal destination for businesses looking to expand globally. But to hire in Brazil successfully, it’s important to understand your options especially when you don’t have a legal entity in Brazil.

That’s where using an Employer of Record in Brazil makes all the difference.

Your Hiring Options in Brazil

Businesses have two main paths to hire employees in Brazil:

The second option is faster, lower-risk, and ideal for companies that want to test the Brazilian market, launch quickly, or hire remote employees without permanent infrastructure.

Why Use an EOR to Hire in Brazil?

This approach is especially useful for startups, global teams, and growing businesses that need to hire quickly and remain fully compliant.

Employment in Brazil

Understanding how employment in Brazil works is key to managing your team successfully and staying compliant. Whether you’re hiring directly or using an Employer of Record (EOR), companies must follow Brazilian labor laws closely especially when it comes to employment contracts, payroll, and employee benefits.

That’s why many growing businesses choose to use an EOR in Brazil to handle these responsibilities with confidence.

Employment Contracts in Brazil

All employees in Brazil must be hired under a written employment contract, clearly outlining the job role, salary, benefits, working hours, and duration of employment. Contracts must comply with the Labor Code of Brazil, and are usually signed before or on the first day of work.

By working with a Brazil employer of record, you can ensure that all employment contracts in Brazil are properly structured, compliant, and aligned with local requirements without having to hire a full in-house HR team.

Payroll & Employer Contributions

Payroll in Brazil involves more than just paying a monthly salary. Employers are required to withhold income tax and make contributions to:

These deductions and employer contributions are calculated based on the employee’s gross monthly salary, and must be submitted on time to remain compliant. An EOR in Brazil handles this for you, managing all payroll, tax filings, and reporting on your behalf.

Employee Benefits and Leave

Brazilian labor law mandates several employee benefits, including:

Using an employer of record service ensures your team in Brazil receives all required benefits and that your business remains fully compliant with Brazilian employment law.

Termination & Notice Periods

Ending an employment contract in Brazil requires careful compliance with strict labor laws governing notice periods and termination rights. Notice typically ranges from 30 to 90 days, depending on length of service, and employees are often entitled to severance, including payments from the FGTS (Severance Indemnity Fund).

Partnering with an Employer of Record ensures companies handle these obligations correctly, reducing legal risks while maintaining a fair and compliant offboarding process.

Visas & Permits in Brazil

If you’re planning to hire employees in Brazil or bring in foreign talent, understanding Brazil’s visa and permit requirements is critical. Navigating these processes can be complex, but working with a trusted Employer of Record (EOR) in Brazil makes it much easier.

An experienced EOR provider will ensure all permits are handled legally, so you can focus on building your team in Brazil with confidence.

Work Permits for Foreign Employees in Brazil

Foreign nationals who plan to work in Brazil must secure the appropriate work visa and residence authorization, a process that can be complex due to strict labor and immigration regulations.

An Employer of Record helps streamline this by managing sponsorship, compliance, and documentation, ensuring foreign employees are legally authorized to work without delays. This allows companies to expand seamlessly into Brazil while remaining fully compliant with local laws.

Types of Visas for Foreign Talent

There are several types of visas used to work or do business in Brazil, including:

Each visa type has specific use cases, duration limits, and documentation requirements. If you’re looking to hire in Brazil or send international staff temporarily, an EOR Brazil solution helps you identify the right visa and manage the application process end-to-end.

Business Permits for Foreign Companies

To operate directly in Brazil, foreign companies typically need to register a legal entity in Brazil and apply for a business license. This can be a time-consuming process that includes office registration, investment approvals, and compliance with Brazilian labor laws.

Alternatively, you can use an EOR in Brazil to bypass the need for a local entity. The Brazil employer of record is already registered and authorized to employ staff and manage payroll, contracts, and local compliance making it easier and faster to hire employees in Brazil.

Why Visas & Permits Matter for Global Hiring

If you’re hiring foreign employees in Brazil, or placing international staff in-country, it’s essential to stay compliant with immigration laws. The right employer of record service helps you:

Common Questions on EOR in Brazil

How does an EOR support foreign employees working in Brazil?

An EOR assists with visa sponsorship and compliance for foreign employees, ensuring they obtain the proper work authorization. They also handle local onboarding and HR support so foreign talent can work legally and seamlessly within Brazilian labor frameworks.

Can an EOR manage employee terminations in Brazil?

Yes, an EOR manages employee terminations in strict accordance with Brazilian labor law. This includes observing notice periods, calculating severance, managing FGTS withdrawals, and ensuring proper documentation is filed with authorities to avoid disputes or penalties.

Does using an EOR in Brazil reduce compliance risks?

Absolutely. Brazil has one of the most complex labor law systems in the world, and an EOR helps companies stay compliant with payroll, benefits, tax, and HR regulations. This minimizes risks of fines, litigation, or reputational harm due to non-compliance.

Can an EOR manage both permanent and fixed-term contracts in Brazil?

Yes, an EOR can facilitate different employment types—whether open-ended, fixed-term, or project-based contracts. They ensure contracts comply with Brazilian labor code provisions, which strictly regulate contract terms, renewals, and termination conditions.

How does an EOR handle employee onboarding in Brazil?

An EOR oversees the entire onboarding process, from drafting compliant employment contracts to collecting mandatory documentation and registering employees with government authorities. This ensures new hires can start working quickly without administrative delays.

Can companies scale their workforce quickly in Brazil using an EOR?

Yes, one of the biggest advantages of using an EOR is speed. Since the EOR already has the legal infrastructure in place, companies can hire staff in Brazil within weeks instead of months, bypassing the lengthy process of entity setup.