CLT x PJ: understand the differences and advantages
Posted: Wed Jan 22, 2025 6:54 am
One of the biggest questions that still leaves companies, employees and service providers in doubt is about the hiring model: CLT (Consolidation of Labor Laws) and PJ (Legal Entity) .
There are companies that already have a hiring standard, but in other situations, it is possible to be more flexible and analyze the pros and cons of each option.
Want to know more about CLT and PJ? What are the advantages of each? Keep reading this article!
– CLT
The CLT is an instrument created by the government of President Getúlio Vargas, which consolidated and instituted standards that regulate individual and collective labor relations in the country, approved by decree-law nº 5.452 , of 1943.
As its name suggests, the CLT consolidated several laws that already existed . In more than seven decades of existence, the CLT has undergone several changes, including the 2017 labor reform.
In addition to guaranteeing labor rights and regulating argentina whatsapp lead urban employment relations, the CLT contains rules on: occupational health and safety, union organization, violations and fines in employment relations, Labor Justice, among other issues.
Who is the CLT for?
The CLT applies mainly to urban workers with employment contracts. For this reason, these professionals are called CLT employees.
To be considered under the CLT, it is necessary to: . Be an individual; . Provide services in a personal capacity – in other words, the work must be carried out by a specific person, hired for the service; . Be subject to the employer's rules; . Provide non-occasional services – every day or with a specific frequency, except in the case of intermittent work.
Registration in the work card establishes the link between the company and the employee, therefore, the employee has rights guaranteed by law.
What rights does the CLT guarantee to workers?
When hired under the CLT, the worker receives some rights, including:
. Paid weekly rest;
. Paid annual vacation with at least one third more than the salary;
. Thirteenth salary;
. FGTS (Service Time Guarantee Fund);
. Unemployment insurance;
. Maternity leave;
. Paternity leave;
. Among others.
Who cannot join the CLT?
Rural workers, civil servants, volunteers, self-employed workers, interns and apprentices, among other workers, cannot be included in the CLT. However, this does not mean that these workers do not have legal protection. Their rights are simply not covered by the CLT.
– PJ
Being a PJ means registering with the appropriate agencies to formalize your business, in other words, opening a company , whether it is a ME, MEI or any other business category. The PJ needs to have a CNPJ to provide services to the contracting party . Those who choose to be a PJ have a series of advantages, such as guaranteeing more freedom and flexible hours, but they also assume responsibilities, such as issuing invoices and paying taxes.
Some of the advantages of being an individual contractor include:
. Guaranteed greater flexibility in working hours;
. Autonomy to choose which companies and projects you want to work for;
. Allows you to work for several clients at the same time.
It is well known that in recent years the number of professionals who have signed up to the service provision regime has increased. This is because hiring with a formal contract involves so much bureaucracy and such a high tax cost for employers that outsourcing is becoming a better option for companies.
Taking all these considerations into account, the answer regarding the best hiring regime option will depend largely on each company's particular vision and the objective of each professional.
While on the one hand, those who are CLT do not need to worry about elementary factors for the company itself, such as default or prospecting for new clients, these professionals also do not have much control over their professional life.
If you want to ensure greater autonomy in your life, freedom, professional growth and are thinking about opening a company, consult our team. Accounting plays a fundamental role in a company, from the opening to the closing of a business.
There are companies that already have a hiring standard, but in other situations, it is possible to be more flexible and analyze the pros and cons of each option.
Want to know more about CLT and PJ? What are the advantages of each? Keep reading this article!
– CLT
The CLT is an instrument created by the government of President Getúlio Vargas, which consolidated and instituted standards that regulate individual and collective labor relations in the country, approved by decree-law nº 5.452 , of 1943.
As its name suggests, the CLT consolidated several laws that already existed . In more than seven decades of existence, the CLT has undergone several changes, including the 2017 labor reform.
In addition to guaranteeing labor rights and regulating argentina whatsapp lead urban employment relations, the CLT contains rules on: occupational health and safety, union organization, violations and fines in employment relations, Labor Justice, among other issues.
Who is the CLT for?
The CLT applies mainly to urban workers with employment contracts. For this reason, these professionals are called CLT employees.
To be considered under the CLT, it is necessary to: . Be an individual; . Provide services in a personal capacity – in other words, the work must be carried out by a specific person, hired for the service; . Be subject to the employer's rules; . Provide non-occasional services – every day or with a specific frequency, except in the case of intermittent work.
Registration in the work card establishes the link between the company and the employee, therefore, the employee has rights guaranteed by law.
What rights does the CLT guarantee to workers?
When hired under the CLT, the worker receives some rights, including:
. Paid weekly rest;
. Paid annual vacation with at least one third more than the salary;
. Thirteenth salary;
. FGTS (Service Time Guarantee Fund);
. Unemployment insurance;
. Maternity leave;
. Paternity leave;
. Among others.
Who cannot join the CLT?
Rural workers, civil servants, volunteers, self-employed workers, interns and apprentices, among other workers, cannot be included in the CLT. However, this does not mean that these workers do not have legal protection. Their rights are simply not covered by the CLT.
– PJ
Being a PJ means registering with the appropriate agencies to formalize your business, in other words, opening a company , whether it is a ME, MEI or any other business category. The PJ needs to have a CNPJ to provide services to the contracting party . Those who choose to be a PJ have a series of advantages, such as guaranteeing more freedom and flexible hours, but they also assume responsibilities, such as issuing invoices and paying taxes.
Some of the advantages of being an individual contractor include:
. Guaranteed greater flexibility in working hours;
. Autonomy to choose which companies and projects you want to work for;
. Allows you to work for several clients at the same time.
It is well known that in recent years the number of professionals who have signed up to the service provision regime has increased. This is because hiring with a formal contract involves so much bureaucracy and such a high tax cost for employers that outsourcing is becoming a better option for companies.
Taking all these considerations into account, the answer regarding the best hiring regime option will depend largely on each company's particular vision and the objective of each professional.
While on the one hand, those who are CLT do not need to worry about elementary factors for the company itself, such as default or prospecting for new clients, these professionals also do not have much control over their professional life.
If you want to ensure greater autonomy in your life, freedom, professional growth and are thinking about opening a company, consult our team. Accounting plays a fundamental role in a company, from the opening to the closing of a business.