Dismissal by Agreement in Brazil (Art. 484-A): What You Get, FGTS and Unemployment Insurance

Updated November 3, 2026

Since the 2017 labour reform, employer and employee in Brazil can end a contract by mutual agreement (CLT, art. 484-A). It sits between resigning and being dismissed without cause: some items are halved, others are paid in full.

1. What changes compared with dismissal without cause

Item	Without cause	By agreement
Notice paid in lieu	full	half
FGTS fine	40%	20%
FGTS withdrawal	100% of the balance	up to 80%
Unemployment insurance	yes, if eligible	no
Salary balance, pro-rata 13th, vacation + 1/3	full	full

The 20% of FGTS that cannot be withdrawn stays in the account and can be taken later in the other cases the law allows (retirement, buying a home and so on).

2. Worked example

Salary of R$ 3,000.00, 4 full years in the job, FGTS balance of R$ 12,000.00, notice paid in lieu:

Notice: 30 + 3 × 4 = 42 days → R$ 4,200.00; half = R$ 2,100.00
FGTS fine: 20% of R$ 12,000.00 = R$ 2,400.00 (R$ 4,800.00 without cause)
Withdrawal: 80% of R$ 12,000.00 = R$ 9,600.00; R$ 2,400.00 stays in the account
Salary balance, pro-rata 13th and vacation: calculated as usual

Compared with a dismissal without cause, the employee gives up R$ 2,100.00 of notice, R$ 2,400.00 of fine and the unemployment insurance — but gets much more than by resigning, which brings no notice pay, no fine and no FGTS withdrawal.

3. When it makes sense

You already have another job lined up and would not need unemployment insurance.
You were going to resign anyway: by agreement you take half the notice, a 20% fine and 80% of the FGTS.

The agreement must be what both sides want. An employer cannot impose it to pay less for what would be a dismissal without cause; if that happens, talk to your union.

4. Common questions

What if the notice is worked? The law halves only notice paid in lieu. If it is worked, the normal period applies.
Does it need union approval? No: since 2017 terminations need no union sign-off, but the termination form must show the agreement code, and payment is due within 10 days (art. 477, §6).
Unemployment insurance? Not available after an agreement (art. 484-A, §2). See the unemployment insurance guide.

Do the maths

In the severance calculator, choose "agreement" as the reason: it works out half the notice, the 20% fine and the 80% FGTS withdrawal, and shows the difference from a dismissal without cause. For how notice days are counted, see the notice period guide.

This guide covers the general CLT rules; collective agreements may offer better terms. If in doubt, ask HR or your union.

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