Article 480 of the CLT: understand the rights and duties when terminating a contract
Posted: Sun Feb 02, 2025 6:13 am
Managing employment contracts effectively is an essential task to avoid legal complications and ensure a fair relationship between the company and its employees. In the case of fixed-term contracts, article 480 of the CLT plays a fundamental role in defining the rights and obligations in situations of early termination.
Clearly, for HR managers and business owners, understanding this rule is essential, especially to prevent financial losses and ensure that terminations occur in accordance with the law.
In this article, we will explore in detail how Article 480 impacts the termination of fixed-term contracts, what penalties are provided for and how to apply the rule in a practical way in your company.
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What does Article 480 of the CLT say?
Article 480 of the Consolidation of Labor Laws ( CLT ) establishes that, in the event of termination of a fixed-term employment contract, when the employer terminates the contract before its end, without just cause, the employee will be entitled to receive the wages corresponding to the remaining period until the end of the contract.
In other words, if the employer terminates a fixed-term employment contract before its end, without just cause, the employee will be entitled to receive the wages corresponding to the period remaining to complete the contract.
It is important to note that this article of the CLT protects the employee by ensuring that he or she receives the amounts owed to him or her if the employer decides to terminate the contract early. In this way, the employee is guaranteed the same rights that he or she would have if the contract had been fulfilled to the end.
What is the value of the fine under article 480 of the CLT?
According to the aforementioned legal provision, the amount of the fine under article 480 of the CLT is equivalent to the remuneration that would be due to the employee until the end of the fixed-term contract. In other words, if the termination of the employment contract occurs at the employer's initiative, without just cause, the employer must compensate the employee.
Here we will explain in a simple way how to calculate this fine. As we have already seen, the fine in this article of the CLT is calculated based on the employee's salary, taking into account the remaining time of the contract. If the employee decides to terminate the contract before the agreed term, he must pay a fine equivalent to half of the salary he would receive until the end of the contract.
Example
Your company has an employee whose contract would end in 3 months and his salary is R$2,000.00. In this case, the fine that your employee has to pay will be R$1,000.00. In other words, half of the salary for the remaining period of 3 months.
br - INBOUND - Commercial dossier
What losses warrant the application of Article 480?
According to article 480 of the Consolidation of Labor Laws (CLT), the employee may be held liable for losses caused to the employer, provided that these losses are the result of intentional actions or negligence on the part of the employee.
For the application of this provision to be valid, it is essential to understand precisely which situations are considered losses within the context of Brazilian labor legislation. These losses must be clear and demonstrated to ensure that the fine is applied fairly and in accordance with the law.
Clearly, for HR managers and business owners, understanding this rule is essential, especially to prevent financial losses and ensure that terminations occur in accordance with the law.
In this article, we will explore in detail how Article 480 impacts the termination of fixed-term contracts, what penalties are provided for and how to apply the rule in a practical way in your company.
Understand how to protect your business while maintaining legal armenia whatsapp list compliance!
sesame hr logo
Simple and centralized digital time control system from Sesame RH
Supervise and manage your team's working time efficiently, record hours worked and optimize resource planning to improve productivity.
Free trial
What does Article 480 of the CLT say?
Article 480 of the Consolidation of Labor Laws ( CLT ) establishes that, in the event of termination of a fixed-term employment contract, when the employer terminates the contract before its end, without just cause, the employee will be entitled to receive the wages corresponding to the remaining period until the end of the contract.
In other words, if the employer terminates a fixed-term employment contract before its end, without just cause, the employee will be entitled to receive the wages corresponding to the period remaining to complete the contract.
It is important to note that this article of the CLT protects the employee by ensuring that he or she receives the amounts owed to him or her if the employer decides to terminate the contract early. In this way, the employee is guaranteed the same rights that he or she would have if the contract had been fulfilled to the end.
What is the value of the fine under article 480 of the CLT?
According to the aforementioned legal provision, the amount of the fine under article 480 of the CLT is equivalent to the remuneration that would be due to the employee until the end of the fixed-term contract. In other words, if the termination of the employment contract occurs at the employer's initiative, without just cause, the employer must compensate the employee.
Here we will explain in a simple way how to calculate this fine. As we have already seen, the fine in this article of the CLT is calculated based on the employee's salary, taking into account the remaining time of the contract. If the employee decides to terminate the contract before the agreed term, he must pay a fine equivalent to half of the salary he would receive until the end of the contract.
Example
Your company has an employee whose contract would end in 3 months and his salary is R$2,000.00. In this case, the fine that your employee has to pay will be R$1,000.00. In other words, half of the salary for the remaining period of 3 months.
br - INBOUND - Commercial dossier
What losses warrant the application of Article 480?
According to article 480 of the Consolidation of Labor Laws (CLT), the employee may be held liable for losses caused to the employer, provided that these losses are the result of intentional actions or negligence on the part of the employee.
For the application of this provision to be valid, it is essential to understand precisely which situations are considered losses within the context of Brazilian labor legislation. These losses must be clear and demonstrated to ensure that the fine is applied fairly and in accordance with the law.