When the maximum duration period of temporary disability is reached (365 days plus a possible extension of 180 days), a total of 545 days of sick leave is reached. From that moment on, generally the company stops contributing for the employee and processes their leave with Social Security. In this regard:

• Even though the employee is no longer registered for contribution purposes, their employment contract is not terminated. It remains suspended while the National Institute of Social Security (INSS) decides whether to grant the affected person a permanent disability or issues their medical discharge.

• During that period, the worker maintains the right to return to their position if they receive a medical discharge. Therefore, even if they are not providing services, their position cannot be considered vacant.

Therefore, if the company needs to fill that position, they must formalize a substitution contract (previously, an interim contract), which is the one that should be used to temporarily fill a position while the contract of the titular person is suspended. In the contract, the company must identify the replaced worker and clearly indicate the reason for the substitution. In other words, explain that the contract of the titular person is suspended after exceeding the maximum IT period and while the INSS resolves their situation.

The substitution contract will terminate when any of the following situations occur:

• The reintegration of the titular worker of the position (who has been replaced), if the INSS does not recognize permanent disability.

• Or the termination of the contract of said person due to their recognition of permanent disability (provided that the company is unable to make adjustments to their position).

 

Our professionals will inform you about any questions you may have regarding employment contracts.