As China’s Belt and Road Initiative aligns more deeply with Brazil’s “reindustrialisation” strategy, China has maintained its position as Brazil’s largest trading partner for 16 consecutive years. With bilateral economic ties expanding, a growing number of Chinese enterprises are moving beyond trade to invest and operate locally in Brazil.
Brazil’s legal environment is renowned for its complexity, with a labour law regime reflecting strong bias towards worker protection. Law No. 13467/2017, which came into effect in 2017, introduces greater flexibility in employment practices, but Brazil’s labour system remains a minefield for investors accustomed to Chinese employment management norms.
Ignoring the institutional differences between the two countries can send personnel costs spiralling and expose companies to costly employment litigation.
As a guide to avoiding such pitfalls, this article examines core compliance issues under Brazil’s labour law that Chinese businesses should prioritise when establishing or expanding operations in the country.
Brazilian labour law adheres strictly to the principle that “substance prevails over form” when determining the existence of an employment relationship.
Even if a company signs an agreement styled as an Independent Contractor Agreement or Labour Service Contract, the courts will look beyond the contractual label to analyse the reality of the working relationship.
If the nature of the services provided meets...
Abu Dhabi -- Dr Anwar Bin Mohammed Gargash, Diplomatic Advisor to the President of the UAE, shared a statement on the "X" platform, noting that Iranian claims of targeting American military bases ...