It is common practice in the labor market the expatriation of foreign executives to Brazil (called 'expatriates'), coming from companies outside Brazil.

Thus, Brazilian companies have received these foreign executives and, as a result, has given them the same treatment given to Brazilian employees executives.

In this sense, when a Brazilian company receiving foreign executives to work in Brazil, besides the tax and labor issues that are not addressed in this article, specifically regarding the Social Security aspects, there is a need to check for existing bilateral or multilateral agreements between Brazil and the country Expatriate source.

Bilateral agreements are signed between two countries and seek to govern interests of both. Multilateral agreements are always signed by more than two countries, and aims to govern the interests of all countries involved.

These agreements are the result of efforts of the Ministry of Social Security and diplomatic understandings between governments, and are motivated by (i) high volume of foreign trade; (Ii) receipt in the country of significant foreign investment; (Iii) host, in the past, the intense migratory flow; (Iv) special friendships.

These agreements aims to guarantee the rights of social security provided for in the laws of the countries involved to their employees and dependents residing or in transit in the country.

This is the establishment of a relationship of providing social security benefits and does not involve the modification of current legislation in the country, fulfilling each Contracting State examine applications for benefits submitted and decide on the rights and conditions as their own applicable law, and the respective Agreement.

The Social Security Agreements apply to benefits, as specified in each agreement, on the following events:

  • disability to work (permanent or temporary);
  • Labor accident and 'occupational' diseases;
  • Length of service;
  • Old age;
  • Death; and
  • rehabilitation.

The temporary displacement of some worker to Brazil can vary according to the wording of the established agreement between the signatory countries and, in that period, the employee will remain linked to the country of origin social security legislation, or may be bound to the social security's system of their country without suffering / make payment (contribution) to the country of displacement, since met some formal requirements (information to social security of the country of origin, obtaining permission and etc.).

Finally, checked the need for maintenance of this worker in Brazil for more time than expected (and foreseen in each agreement, ie, with the end of the maximum period of temporary displacement, it is important that the Brazilian company check for a grace period to apply for a new displacement or whether to hire expatriate in the end, as a Brazilian's worker.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.