The significant rate of labor turnover in Brazil is caused by several factors, such as short-term contracts, seasonality of raw material, and economic cycles and employers' free reign to dismiss and hire employees. Despite the rise in resignations by employees due to booming markets, unjustified dismissals (contracts terminated by the employer without motive) remain one of the most common reasons for employment termination.
This was demonstrated in a study conducted by the Inter-Trade Union Department for Statistics and Socioeconomic Studies (DIEESE), which assessed six industry and service sectors between 2007 and 2012 (hotels and catering, banks, trade, civil construction, metallurgy and chemistry), which together account for nearly half of ended contracts.
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