International labor laws: key aspects for employees

The remote work trend allowed companies to create a global workforce. If you're considering remote work for an international company, there are critical factors to consider.

Remote work vs. Home office

When it comes to remote work, it's essential to understand the differences between "remote work" and "home office."

A home office refers to the concept of working from home. Additionally, there is the potential for a hybrid model where the employee must visit the company's headquarters frequently.

Remote work, on the other hand, is a broader term that defines work without limitations on location. Working remotely means having the flexibility to work from anywhere other than a traditional office. With remote work, you can choose the environment that best suits your productivity. 

It's worth mentioning that remote companies often have a unique culture, focusing on asynchronous communication and more flexibility in work hours. If you want to work internationally, remote work is the ideal format. You don't need to be physically present at a specific location; many Brazilian professionals work for companies worldwide in this manner. 

However, it's important to note that working for a foreign company may have tax implications. There may be unique regulations and requirements for each country involved. It's advisable to seek the help of an accountant or legal advisor to ensure compliance with laws and regulations.

Remote work opens up new possibilities for employees and employers, but navigating the challenges and requirements is essential. With Olby, you can find international career opportunities that align with your skills and preferences. 

Remote hiring: understand your options

Take a moment to consider the Brazilian labor laws that govern employment contracts within the country. You will likely agree that some rules can seem confusing and unclear. We regret to inform you that working abroad also has its perks.

Working abroad can come with challenges, including navigating each country's labor laws and requirements. When it comes to remote hiring, there are different ways to establish a connection with an international company.

Being a foreign employee

In this case, the American company employs you directly, and as such, it will need to pay American taxes on your position. Additionally, it will deduct from your salary the amounts of the Brazilian income tax, the IRRF, which is the income tax withheld at the source. Simultaneously, you will need to file your Personal Income Tax Return with the Federal Revenue, as is already required in a CLT contract. As Brazilian labor rights differ from American states, most companies do not hire in this employment relationship format.

Remote work as a contractor

Independent Contractors, or self-employed workers who work for US companies, do not pay US taxes. However, they must have a company commonly known as Pessoa Jurídica (PJ) in Brazil.

As a result, they will have to pay Brazilian taxes and report their income to the Receita Federal in Brazil. This process must be done with the mandatory help of an accountant.

Many remote workers choose to work as independent contractors due to their financial flexibility. Using talent networks like Olby, you can swiftly establish a strong career. And you can also get assistance with the administrative procedures involved.

Working through a PEO Company

A PEO, or Professional Employer Organization, is an intermediary employment agency that will act as your official employer in Brazil. The agency can also act as the Employer of Record (EOR) in the country. This means it will hire you in the name of the international company for tax remittances and other deductions.

In other words, you will have a CLT contract with an agency and work on behalf of another company. This solution offers a more straightforward way for remote professionals to work for global companies.

What suits you best?

Working remotely comes in different formats, and it is essential to understand which is best for you. It's important to remember that you can experiment with various forms of remote work and make adjustments as you go. In addition, remote work can offer a sense of satisfaction and autonomy you may have never experienced. And with the current remote work trend, there has never been a better time to try it out.

Discover the freedom and flexibility of working remotely with a US company. Download our ebook Tudo o que você precisa saber para trabalhar remotamente em uma empresa americana.