Brazilian Labor Law (CLT) 2026: late vacation granting now triggers additional compensation for employees and fines for employers

New rules strengthen employee protection: delays in granting or paying vacation leave may result in financial compensation for the employee and automatic penalties for the employer

Paid annual leave is a statutory right guaranteed to all employees formally hired under the Brazilian Labor Code (CLT) and is therefore subject to specific legal deadlines.

When an employer postpones this rest period or fails to comply with the statutory payment schedule, the issue may result in operational complications and additional financial exposure.

In practical terms, there is a distinction between delaying the granting of vacation leave (failing to allow the employee to take leave within the legally defined period) and delaying the payment of vacation pay (making payment after the statutory deadline). Each situation may trigger different legal consequences.

The right to annual leave is acquired after 12 months of service (the accrual period). From that point, the employer has a legally defined concession period in which to grant the leave.

If the employer exceeds this deadline and requires the employee to continue working when the leave should already have been taken, the consequence is more severe: the employee may be entitled to receive double vacation pay, including the statutory one-third bonus.

In practice, this serves as a penalty mechanism to discourage indefinite postponement of the mandatory rest period.

When leave is granted but payment is not made correctly, the rule is also clear: vacation pay, including the constitutional one-third premium, must be paid no later than two days prior to the start of the leave.

Failure to comply may subject the employer to administrative fines imposed during labor inspections and increase exposure to labor claims, particularly if the delay causes demonstrable losses to the employee.

In recent years, case law has narrowed the interpretation of “double payment” in situations involving only delayed payment. Not every delay in depositing vacation pay automatically results in double compensation.

Even so, late payment remains a statutory violation and may lead to penalties.

For employees, the recommendation is to retain supporting documentation and records, including vacation notices, payslips, bank statements, and related communications.

For employers, the message is straightforward: vacation leave requires proper workforce and payroll planning, as delays may generate labor liabilities and regulatory penalties.

Ultimately, annual leave is not discretionary. Non-compliance with statutory requirements can result in direct financial consequences for the employer.

Source: Portal 6