Labor Relations in Brazilian Startups
In recent years, startups, seen as dynamic and innovative environments, have gained attention and changed how we view the job market. In Brazil, work relations in startups have unique characteristics that reflect the challenges and opportunities of these companies.
Entrepreneurship and Flexibility: One key characteristic that differentiates startups from conventional companies is the entrepreneurial culture that surrounds their environment with a horizontal hierarchy. Employees also experience more autonomy and freedom to work, as there is flexibility in working hours and how daily tasks are performed.
Remuneration and Profit Sharing: Unlike fixed remuneration, startups usually offer profit sharing or company stock. This is an encouraging incentive for employees, motivating them to perform their duties better and support the company's growth.
Dynamism: Working in a startup is challenging. The workflow is faster, and adapting to daily changes and challenges is necessary.
Labor Risks: However, startups often face problems related to structuring and compliance with current laws and regulations. It is crucial for startups to be aware of labor laws and build ethical and responsible relationships with their employees. Among the main risks of these operations are:
- Lack of formalization of rules between partners and employees;
- Employees not formally registered or without contracts;
- Lack of control over working hours, vacations, and other benefits;
- Absence of collective rights;
- Bonuses and awards used incorrectly.
Vanessa Dumont, a labor process specialist lawyer, also states that the main challenge for startups is reconciling the disruptive environment with current legislation, including the Consolidation of Labor Laws (CLT). Despite their innovative and disruptive nature, startups are formally subject to a set of labor rules and regulations.
Therefore, labor consultancy is always recommended as it can help these companies adopt the best hiring strategy for their employees. Today, the CLT provides different hiring models such as:
- Intermittent work;
- Temporary contract;
- Part-time work regime;
- Highly qualified worker;
- Fixed-term contract.
Thus, it is possible to legally meet the needs of entrepreneurs and employees, further promoting the disruptive and informal universe of startups.