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Wednesday, February 6, 2013

Labour Law Framework: An International Comparison

XIME, Bangalore


As labor laws pervade virtually every aspect of business practice anywhere in the world and managers regularly confront employment law questions, this paper intends to provide an analysis of the most relevant aspects of Brazilian labour law. The literature examining Brazilian labour law is as rich and thoughtful as it is expansive. However, most of this writing is also exceedingly legalistic and complex to those without legal training or expertise. The goal of this paper is to demystify Brazilian labour legislation, and explain how it influences the way of doing business in the country. From an economic, political and historical perspective, Brazilian labour legislation impacts wages, employment, domestic consumption and economic growth, among others. Labour legislation also affects labor market outcomes and business operations as part of the “Custo Brasil” – Brazilian cost (the high cost of doing business in Brazil). This paper concludes that regulatory changes have to be made in the near future; otherwise labour law in Brazil will become ineffective and may affect sustainable economic growth.

Ligia Maura Costa. Partner at Ligia Maura Costa, Advocacia, full professor at FGV-EAESP. Author of the book: BRIC. Doing Business in BRIC Countries. Legal Aspects. (2012). v. 1, São Paulo: Quartier Latin.