Brazil’s Workplace Compliance Rules: What Foreign Companies Need to Know for 2026

Brazil is one of the most attractive markets in Latin America for foreign companies, particularly in mining, energy, and industrial technology. The opportunity is clear, but labour is often where things become complex. The framework is highly regulated, with strict requirements around payroll, reporting (such as eSocial), employee benefits, and working conditions, along with an active labour litigation environment. Health and safety obligations are also detailed and closely enforced, which can create challenges if companies are not properly set up from the start.

From May 2026, this becomes even more relevant. Changes to NR-1 reinforce and expand the expectation that workplace safety is actively managed in day-to-day operations. The focus is on structured risk management, ongoing monitoring, and, importantly, addressing psychosocial risks such as stress, burnout, and workplace pressure. For foreign companies, this highlights a common gap between having global policies and meeting Brazil’s expectations for local, documented compliance.

What is changing under NR-1

From May 2026, NR-1 becomes more demanding in practice. The key change is that the Programa de Gerenciamento de Riscos (PGR) is expected to be actively used, embedded into daily operations, and supported by regular updates and monitoring.

The most notable development is the inclusion of psychosocial risks. This means companies are now expected to look at things like stress, burnout, workplace pressure, harassment, and how the organization itself may be impacting employees’ mental health. These risks should be identified, assessed, and managed in a structured way, alongside physical risks.

In simple terms, NR-1 is moving further toward a practical, operational requirement rather than a purely formal exercise.

Why this matters for companies

This change raises the bar on compliance. It is no longer enough to have policies in place or documents prepared. Authorities are increasingly looking at whether companies are actually applying these measures in practice.

For many foreign companies, this is where the gap sits. Most already have global policies on health, safety, and workplace behaviour, but those policies are often not adapted to Brazil or properly documented in line with local rules.

The focus on psychosocial risks makes this even more relevant. These are areas that are harder to measure and are often handled informally. In Brazil, however, companies are expected to show that they have identified these risks and are actively managing them.

There is also a practical risk. If these issues are not handled correctly, it can lead to inspections, fines, or employee claims, particularly in a system where labour protections are strong and actively enforced.

What companies need to do

There are three main steps companies should focus on.

First, carry out a proper risk assessment. This means looking at the actual workplace in Brazil and identifying both physical and psychosocial risks. It should be specific to how the company operates locally, not just based on global templates.

Second, put together a clear action plan. This should explain how each risk will be managed in practice. For example, how workload is controlled, how complaints are handled, what training is in place, and who is responsible for each area.

Third, implement ongoing monitoring. Companies should be able to show that they are tracking risks over time, reviewing what is working, and making updates when needed.

In simple terms, NR-1 is no longer just about having the right documents in place. Companies need to show that they are managing risks day to day, including areas such as stress and workplace pressure. This applies to all companies. Smaller teams can keep things simple, but it still needs to be clear and documented. Larger companies will need more structure and stronger evidence that their systems are working. The key is to ensure that what is written on paper reflects what is actually happening in the business.

Conclusion

These changes highlight a simple reality. Labour and compliance in Brazil cannot be managed informally. Having the right HR support, whether internal or through a local advisor, is essential. 

Someone on the ground who understands how the system works can help ensure that contracts, policies, and processes are aligned with Brazilian law from the start. They can also identify risks early, including psychosocial risks, and make sure day-to-day matters such as payroll, reporting, and employee management are handled correctly and consistently.

In practice, this leads to fewer issues, smoother operations, and better preparation for inspections or audits. In a market like Brazil, where labour rules are detailed and actively enforced, having this support is not just helpful, it is a key part of operating effectively.

Ax Legal helps industrial technology, engineering, and service companies to navigate the legal and commercial aspects of operating their business in Latin America. With deep knowledge of the industrial and natural resource sectors, we provide actionable and practical advice to help streamline our clients’ entries into Latin America, improve how they operate in the region, and to protect their interests.

Over the years, our team of legal and commercial advisors have developed a track record of working with companies of all sizes from Australia, Canada, the U.S., and Europe. The one common factor that connects our clients is that they are leaders in their field, providing innovative technologies and services to the industrial sectors.

To better understand how we can support you in the Region, please contact Cody Mcfarlane at cmm@ax.legal