Dismissal After Retirement in 2026: What the Law and Brazil’s Superior Labor Court (TST) Say

This page is a translation of the original Portuguese text, provided for convenience. It deals with Brazilian law. If there is any discrepancy, the Portuguese version prevails. Read the original in Portuguese

Many workers retire and stay with the same company, until the day they receive a termination letter. The question comes up right away: can the company do that?

Does retirement give you job security?

No. The CLT (Brazil’s Consolidated Labor Laws) does not provide job security for people who retired voluntarily. The cases of temporary job security are an exhaustive list: pregnant workers (art. 10, II, “b”, ADCT, the Transitional Constitutional Provisions Act), union leaders (art. 543, CLT) and members of the internal accident prevention committee (art. 165, CLT). None of them includes retirees.

If you retire based on length of contribution or age, you remain an ordinary employee. The company keeps the power to end the employment contract at any time, without any specific justification. There is no automatic legal shield.

But what if the collective bargaining agreement for your occupation says something different? In that case, you may well have protection. Some occupations negotiate clauses that guarantee temporary job security or additional compensation for retirees who are dismissed. It is always worth checking with your union.

Citation capsule: Brazilian labor law does not provide job security for retired workers. The temporary job security cases in the CLT are an exhaustive list and do not include voluntary retirement, according to the Consolidated Labor Laws (arts. 165 and 543).

What does the TST say about dismissal after retirement?

Brazil’s Supreme Federal Court (STF) settled the question when it declared paragraphs 1º and 2º of art. 453 of the CLT unconstitutional, in ADI 1721 and ADI 1770 (direct actions of unconstitutionality), and the Labor Courts apply that position: voluntary retirement does not end the employment contract if the employee keeps working. The worker keeps all of his or her rights, but the company retains the power to dismiss the worker.

The CLT does not provide job security for people who retired voluntarily.

In recent rulings, the TST has reaffirmed that dismissing a retired employee is not, by itself, discrimination or abuse of rights. The dismissal does not even need to be justified, because art. 7º, I of the Federal Constitution (which provides protection against arbitrary dismissal) still awaits implementing legislation.

When can a dismissal be considered unlawful?

There are two clear exceptions. First, if the company dismisses a worker solely because of advanced age, that is discrimination under Law 9.029/95. Second, mass layoffs without prior collective bargaining can be annulled. Both require strong evidence and a case-by-case analysis.

See the firm’s article on Do Student-Apprentice and Minor Apprentice Periods Count Toward Retirement in 2026?.

In practice, proving age discrimination is challenging. The worker needs to gather concrete evidence (e-mails, witness testimony, a pattern of dismissals at the company) to support the claim before the Labor Courts.

Citation capsule: As the Supreme Federal Court decided in ADI 1721 and ADI 1770, voluntary retirement does not end the employment contract. The company may dismiss a retired employee without giving a reason, as long as it pays in full the termination pay required by the CLT.

Did the 2019 Social Security Reform change anything in this relationship?

Constitutional Amendment (EC) 103/2019 changed the age and contribution requirements, but it did not touch the relationship between retirement and the employment relationship. The minimum age became 62 (women) and 65 (men) under the RGPS (Brazil’s General Social Security Regime), according to art. 19 of the amendment.

What did the reform actually change?

• Minimum age: 62 for women and 65 for men for old-age retirement
• Contribution time: 15 years (women) and 20 years (men), under art. 201, §7º, I of the Federal Constitution (CF), as worded by EC 103/2019
• Transition rules: five options for people who were already contributing before 13/11/2019
• Benefit calculation: a new formula that lowered the average retirement benefit (art. 26, EC 103/2019)

The reform did not ban continuing to work after retirement. It also did not create any extra protection against dismissal. The employment situation of a retiree remains exactly as it was before.

Citation capsule: Constitutional Amendment 103/2019 set a minimum age of 62 (women) and 65 (men) for old-age retirement, but it did not change the possibility of dismissing a retired worker and did not create additional job security.

What rights do you have if you are dismissed after retiring?

A retiree dismissed without cause receives all the termination pay required by the CLT, including the 40% FGTS (Brazil’s Severance Indemnity Fund) penalty under art. 18, §1º of Law 8.036/90. Your rights are not reduced because you already receive a social security benefit.

The full list includes:

• Proportional advance notice: a minimum of 30 days, plus 3 days for each year worked, up to 90 days (Law 12.506/2011)
• Unpaid wages and overdue vacation pay with the 1/3 bonus
• Proportional vacation pay plus the constitutional 1/3 bonus
• Proportional 13th salary for the months worked in the year
• 40% FGTS penalty on all deposits made during the contract
• Full withdrawal of the FGTS balance
• Unemployment insurance, if you meet the requirements of Law 7.998/90

What about social security contributions?

Even if you are retired, if you keep working you are a mandatory insured person under the RGPS (art. 11, Law 8.213/91). You must contribute on your salary as usual. However, these contributions do not increase the amount of the benefit you were already granted.

Desaposentação (giving up a benefit in order to obtain a more advantageous one) was prohibited by the STF (Topic 503). Reaposentação, on the other hand, provided for in art. 18, §2º of EC 103/2019, allows a new calculation without giving up the earlier benefit, but under very specific and limited rules.

Citation capsule: A retiree dismissed without cause is entitled to the 40% FGTS penalty on all deposits, under art. 18, §1º of Law 8.036/90, in addition to proportional advance notice of up to 90 days (Law 12.506/2011) and full withdrawal of the fund.

How can you protect yourself if you are dismissed after retiring?

Roughly five practical tips can make a real difference. The first: there is no legal obligation to tell your employer that you have retired, according to settled case law in labor courts.

• Do not announce your retirement too early. You are not required to disclose it.
• Check the collective bargaining agreement. Some occupations have clauses that protect retirees.
• Keep proof of your performance. Positive reviews, e-mails and records help if you need to prove discrimination.
• Plan your finances. Dismissal is legally possible at any time.
• Consult a specialized lawyer. If the dismissal looks discriminatory, seek advice right away.

Have you checked what the collective bargaining agreement for your occupation says? That document may contain protections many workers don’t know about, and they could completely change the outcome of your dismissal.

Frequently Asked Questions

Can a company dismiss a worker after he or she retires?

Yes. Voluntary retirement does not end the employment contract or create job security, as the Supreme Federal Court decided in ADI 1721 and ADI 1770. A retired employee who keeps working can be dismissed without cause at any time, with full payment of the termination pay required by the CLT, including advance notice, proportional 13th salary, vacation pay and the 40% FGTS penalty.

When can the dismissal of a retiree be considered discriminatory?

When it is proven that the dismissal occurred solely because of age or retiree status, the act can be annulled under Law 9.029/95. Case law requires strong evidence, such as a pattern of mass dismissals of retirees, express statements or discriminatory internal policies. If discrimination is found, the worker may seek reinstatement or double compensation for the period of removal.

Is a dismissed retiree entitled to unemployment insurance?

Yes, as long as the requirements of Law 7.998/90 are met, such as a minimum period of work and the absence of sufficient income of one’s own. Receiving a retirement benefit does not automatically bar unemployment insurance, although the Labor Courts and the STJ (Superior Court of Justice) have taken differing positions in specific situations. For that reason, it is worth filing the claim and, if it is denied, seeking legal advice.

As informações deste artigo são de caráter informativo e não substituem consulta jurídica individualizada. Cada caso possui particularidades que exigem análise específica.