Complete Guide to Employment Termination Procedures (With and Without Cause)
Creates a step-by-step guide covering all legal procedures for employee terminations across different termination types.
Ensure terminations are conducted in compliance with Brazil's Labor Code (CLT), avoiding labor liabilities and lawsuits in the Labor Courts.
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Prompt objective
Ensure terminations are conducted in compliance with Brazil's Labor Code (CLT), avoiding labor liabilities and lawsuits in the Labor Courts.
Real use case
RetailMax, an electronics retail chain with 210 employees across 8 cities, must lay off 35 staff during a 2026 restructuring, and HR needs a comprehensive guide to avoid the 12 labor lawsuits the company faced in previous downsizings.
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Prompt
Create a comprehensive employment termination guide for [COMPANY NAME], in the [INDUSTRY SECTOR] sector, with [NUMBER] employees.\\\\\\\\n\\\\\\\\n**Develop procedures for each termination modality:**\\\\\\\\n\\\\\\\\n1) **Termination Without Cause**:\\\\\\\\n - Notice period: worked or paid in lieu (Articles 487-491, CLT)\\\\\\\\n - Proportionality: 30 days plus 3 days per year of service (Law 12.506/2011)\\\\\\\\n - Severance pay components: earned wages, prorated 13th salary, prorated vacation plus 1/3, 40% FGTS fine\\\\\\\\n - Payment deadline: 10 days (Article 477, §6, CLT)\\\\\\\\n - Required forms: TRCT (termination receipt), FGTS connectivity key, SD (unemployment insurance form)\\\\\\\\n - Exit medical examination: deadline and requirement\\\\\\\\n\\\\\\\\n2) **Termination for Cause** (Article 482, CLT):\\\\\\\\n - Legal grounds (all subsections of Article 482)\\\\\\\\n - Requirements: immediacy, proportionality, non bis in idem\\\\\\\\n - Required documentary evidence\\\\\\\\n - Severance pay due (earned wages plus accrued vacation)\\\\\\\\n - Employee notification: template termination letter\\\\\\\\n\\\\\\\\n3) **Resignation**:\\\\\\\\n - Procedures and severance components\\\\\\\\n - Notice period: served or waived\\\\\\\\n - Settlement meeting required for contracts over 1 year (post-Labor Reform)\\\\\\\\n\\\\\\\\n4) **Mutual Agreement Termination** (Article 484-A, CLT—Labor Reform):\\\\\\\\n - Severance: half of notice period, 20% FGTS fine\\\\\\\\n - FGTS withdrawal: up to 80%\\\\\\\\n - No unemployment insurance eligibility\\\\\\\\n - Settlement agreement template\\\\\\\\n\\\\\\\\n5) **Constructive Dismissal** (Article 483, CLT):\\\\\\\\n - Grounds for \\\\\\\\
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