New vacation rules require written notice and impose fines on companies

Since July 2025, Brazilian companies must comply with new labor regulations that require at least 30 days' written notice of vacation, under threat of fines and lawsuits. The measure, implemented by the federal government, seeks greater transparency and organization in relationships between employers and employees, especially in a scenario of growing remote work. The regulation, which is already in effect, also revises vacation splitting, guaranteeing minimum rest periods and formal agreements. The update aligns Brazil with international practices, such as those adopted in Portugal and Germany, and requires adaptations in human resources departments. The Central Única dos Trabalhadores (CUT) and companies such as Petrobras and Magazine Luiza are already working to comply, while noncompliance can result in severe penalties.

The change to the Consolidation of Labor Laws (CLT) responds to the need to formalize communications in a dynamic labor market. Mandatory written notice eliminates the ambiguity of verbal notifications, common in small businesses, and strengthens employees' legal protections. Furthermore, the new legislation reflects the modernization of labor relations, considering the rise of hybrid and remote models.

Main points of the new rule

• Vacation notice must be formalized in writing.

• A minimum period of 30 days is required for employee notification.

• Vacation splitting requires minimum periods and a documented agreement.

• Fines and legal action are expected for non-compliance.

What changes in vacation notice

The new legislation requires vacation notice to be delivered in writing at least 30 days in advance, ensuring that employees have sufficient time to plan their vacation. Formal notice must include confirmation of receipt by the employee, either in a physical or digital document. This requirement reduces the risk of misunderstandings and protects both employer and employee in potential legal disputes. Large companies, such as Petrobras and Vale, are already reviewing their internal processes to implement digital systems that streamline the communication and archiving of these documents.

The requirement for written notice also seeks to standardize labor practices in Brazil, aligning the country with international standards. In countries like Germany and the United Kingdom, formal vacation notice is a well-established practice, and its adoption in Brazil aims to improve efficiency and transparency in labor relations. The CUT (Workers' Union) emphasizes that clear communication is essential to avoid labor disputes, especially in high-turnover sectors such as retail and construction.

How vacation splitting works

The possibility of dividing vacation into up to three periods remains, but the new rule establishes stricter conditions to ensure effective rest for workers. At least one of the periods must be at least 14 consecutive days, while the other two cannot be less than 10 days each. This division requires a formal agreement between the employee and employer, documented in writing, to avoid future disputes.

Splitting rules

• A minimum period of 14 consecutive days.

• Other periods cannot be less than 10 days.

• Agreement must be recorded in writing with mutual consent.

• Possibility of converting up to one-third of vacation time into cash compensation.

The option of "selling" up to one-third of vacation time, known as cash compensation, remains available, provided the employer agrees. This practice allows employees to receive the amount corresponding to up to 10 days of vacation time, offering a financial alternative for those in need of additional resources. However, unions warn that selling vacation time should be the employee's choice, without pressure from the company.

Impact on companies and necessary adaptations

Brazilian companies, from small to large corporations, need to adjust their human resources processes to comply with the new requirements. Formalizing advance notice requires greater organization, especially for companies with large employees. Sectors such as retail, manufacturing, and technology, which often work with large teams, are already investing in human resource management systems to automate the sending and filing of notices.

Failure to comply with the new rules can result in significant fines, which vary depending on the company's size and the severity of the violation. Furthermore, a lack of formal communication can lead to labor lawsuits, increasing costs and impacting the organization's reputation. Multinational companies, such as Nestlé and Unilever, which already follow similar standards in other countries, have had a smoother transition, but small and medium-sized businesses face challenges implementing the new procedures.

Strategies for compliance

• Adoption of digital systems for sending and recording notices.

• Training HR teams on the new legal requirements.

• Organized archiving of documents for audits.

• Clear communication with employees to avoid misunderstandings.

Benefits for employees

The new legislation reinforces employee rights, ensuring greater predictability and security in vacation planning. Formalizing advance notice prevents companies from imposing last-minute dates, a common practice in sectors such as retail, where seasonal peaks make planning difficult. Furthermore, well-regulated vacation splitting ensures that workers have adequate rest periods, even in high-demand scenarios.

The possibility of converting part of vacation time into a cash bonus is also seen as a benefit, especially for workers facing financial difficulties. The CUT (Cut) and other unions emphasize that the new rule strengthens the relationship of trust between employers and employees, as long as companies strictly comply with the requirements.

Alignment with international standards

The adoption of formal notice periods and regulated vacation splitting brings Brazil into line with labor practices in developed countries. In Germany, for example, vacation notice is required at least one month in advance, and failure to comply can result in severe penalties. In the United Kingdom, companies must also notify employees in advance, and vacation splitting follows rules similar to those now implemented in Brazil.

This convergence reflects the need to modernize Brazilian labor laws in a context of globalization and increased remote work. Formalizing these processes also facilitates the integration of multinational companies into the Brazilian market, which are already accustomed to following strict standards in other countries.

Countries with similar practices

• Germany: 30 days' notice and regulated splitting.

• United Kingdom: Formal notice and minimum rest periods.

• Portugal: Requires written communication and clear agreements.

• United States: Some companies adopt voluntary notice practices.

Preparing for the future

Companies have until the end of 2025 to consolidate their adaptations to the new rules, but experts recommend acting quickly to avoid problems. Implementing digital human resource management systems is a practical solution for medium and large companies, while small businesses can opt for simplified paper document models. Ongoing training of HR teams is essential to ensure that all processes comply with the legislation.

The new rule also encourages more transparent communication between employers and employees, reducing conflicts and strengthening trust in labor relations. For employees, the security of knowing when and how to take their vacation represents a significant advance, especially in sectors where rest was often neglected.

Interesting facts about vacation legislation

Vacation legislation in Brazil has undergone several changes over the years, always seeking to balance workers' rights and the needs of companies. The requirement for advance written notice is one of the most significant changes since the 2017 labor reform, which introduced vacation splitting.

Historical Facts

• The Consolidation of Labor Laws (CLT), created in 1943, established the right to 30 days of annual vacation.

• Splitting vacations was permitted starting in 2017 with the labor reform.

• The new 2025 rule is the first to require formal advance written notice.

• Countries like Japan and South Korea have less stringent vacation rules.

Fonte: Mixvale