New regulations on work permits for foreigners have been issued by the General Immigration Coordinator. This new regulation is known as Resolution 95/2011, Labour Ministry, August 19 2011.

The changes will affect foreigners who are hired or transferred by a foreign entity for appointment as a local manager, director or executive with management powers in Brazil, formerly governed by Resolution 62/2004.

Under the new resolution, foreign entities interested in appointing a foreigner as an officer or director of a Brazilian subsidiary company can still apply for a permanent visa.

However, where the foreign entity offers a local position to a foreign individual, the required investment is R600,000 (around $350,000) for each nominated foreign citizen. Under the previous resolution (62/2004), the required investment was R350,000 (around $200,000) for each employed foreign citizen or R150,000 (around $88,000) where 10 new jobs were created during the following two years. This was according to Resolution 62/2004, Articles 3(I) and (II).

Following the termination of foreigners hired locally for companies that belong to the same economic group, even where termination was by amicable agreement, the former employee will be entitled to the cost of an air ticket and other expenses necessary for the return to his or her home country.

This position was confirmed by a recent labor court decision from the 12th Region in which a company was ordered to pay the repatriation costs of a French worker.

The lawsuit was brought by a French citizen against a French company which has a local subsidiary in Brazil. The court ruled that according to Precedent 207 of the Superior Labour Court, the legal relationship is governed by the labor laws of the country in which the foreigner is providing the service and not by those of the country in which the company is based. It dismissed the defendant’s argument that since the termination occurred following an amicable agreement, the company was not liable to support the repatriation.

Source:  International Law Office | Article by Mesquita Barros Advogados. Please see URL for original content.