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Recognition of
Employment Relationship
The “Pejotizado” figure is increasingly common in the job market. Instead of hiring an employee and following the CLT rules, which is correct, the company chooses to require the employee to open a CNPJ, or use a CNPJ they already have, to provide services.
It turns out that, normally, this service provider acts as an employee. In reality, this type of contracting is a fraud, as in addition to evading the payment of social security contributions, it does not guarantee all the rights legally provided for by the CLT.
It is known that many “Pejotizados” prefer this type of hiring, as they often receive higher remuneration than if they were hired by the CLT. But often this is an illusion.
There are no limits on working hours. Contract termination does not comply with legal requirements. Social security contributions are usually made in amounts lower than those due and, therefore, even lead to lower retirement amounts, for example.
Thus, “Pejotizados” have the right to be recognized as employees and have all CLT rights.