BRAZIL Law and Practice Contributed by: Patricia Barboza, Alinne Gordilho and Amanda Costa, CGM Advogados
CGM Advogados Av Brigadeiro Faria Lima 1663
5th/13th Floors CEP 01452 001 São Paulo Brazil Tel: +55 11239 48900 Email: patricia.barboza@cgmlaw.com.br Web: www.cgmlaw.com.br
1. Opening an HR Internal Investigation 1.1 Circumstances The submission of a complaint by an employee, for - mer employee or even a third party through the com - pany’s reporting channels typically gives rise to an HR internal investigation. These complaints most often relate to issues within the work environment, such as harassment, discrimination or fraud (“matters subject to HR internal investigations”). HR internal investigations may also be initiated as a result of labour lawsuits filed by employees, investiga - tions or audits conducted by competent authorities (such as the Labour Prosecutor’s Office, Ministry of Labour and Employment, unions or tax authorities), due diligence processes or other situations where the company becomes aware of potential violations of laws or internal policies. 1.2 Bases There are no legal requirements for conducting inter - nal HR investigations, except for companies obligated to establish an Internal Commission for the Preven - tion of Accidents and Harassment (CIPA). According to Law 14.457/2022, these companies must have reporting channels to receive, monitor and investigate complaints involving sexual harassment or any other form of workplace violence. However, from an organisational perspective, it is recommended that companies investigate com - plaints regarding alleged irregular, illegal, immoral, illicit, unsafe or fraudulent conduct brought to their
attention. Such investigations help mitigate legal and reputational risks and enable the implementation of disciplinary actions and improvement measures. It is worth noting that the applicable collective bar - gaining agreement covering employees’ contracts may include additional rules regarding HR internal investigations, which the company must follow. Furthermore, if the HR internal investigation pertains to anti-corruption matters, the procedure must com - ply with the Brazilian Anti-Corruption Act, its associ - ated decree and other relevant regulations. For reference, the obligation for companies to estab - lish a CIPA depends on the number of employees and the business’s risk level, as stipulated by a regulation of the Ministry of Labour and Employment. 1.3 Communication Channels There are no specific requirements regarding the types of channels employees may use to report concerns. However, companies required to establish a CIPA, financial institutions and organisations under the authority of the Central Bank of Brazil must provide a reporting channel that ensures the anonymity of the reporter for matters subject to HR internal investiga - tions. The applicable laws for these companies and institutions do not specify further details about the types of reporting channels they must offer. It is also worth noting that the collective bargaining agreements applicable to employees’ contracts may
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