How EWS Helps You Meet Country-Specific Hiring Requirements: Case Study – Hiring in Brazil
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Challenge
A fast-growing IT vendor wants to hire a technical support specialist in Rio de Janeiro. Their legal team has warned them about Brazil's complex labor laws, including the mandatory 13th salary, FGTS contributions, and strict termination procedures. The company has no legal entity in Brazil and doesn't want to spend months setting one up. They need someone to start within 30 days to support their growing customer base in South America.
The main challenges include:
- No legal entity in Brazil to employ staff directly
- Complex Brazilian labor laws with mandatory benefits like 13th salary and FGTS
- Strict termination procedures that could expose the company to legal risks
- Time pressure to hire within 30 days
- Need for local compliance expertise in Brazilian employment law
Solution
EWS Limited steps in as the Employer of Record (EOR) in Brazil. We handle all the legal employment requirements:
- We become the legal employer of the technical support specialist on behalf of the IT vendor
- Our local team ensures full compliance with Brazilian labor laws, including proper calculation and payment of the mandatory 13th salary
- We manage FGTS (Severance Indemnity Fund) contributions as required by Brazilian law
- All employment contracts are drafted in Portuguese and comply with local regulations
- We handle payroll processing, tax withholdings, and social security contributions
- Our HR team manages the onboarding process and ensures all documentation is properly filed with Brazilian authorities
- We provide ongoing support for any HR-related issues that may arise
The IT vendor retains full control over the employee's daily work, performance management, and project assignments, while EWS handles all the administrative and legal compliance aspects.
Results
The technical support specialist was successfully hired and onboarded within the 30-day deadline. The IT vendor was able to:
- Expand into the Brazilian market without establishing a legal entity
- Ensure 100% compliance with complex Brazilian labor laws
- Avoid potential legal risks and penalties associated with non-compliance
- Focus on their core business while EWS handled all employment administration
- Successfully support their growing South American customer base
- Save significant time and resources that would have been required for entity setup
- Maintain flexibility to scale their Brazilian operations up or down as needed
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