> Incorporating and getting a functional business entity in Brazil is harder

It’s still something you can do in less than a month. That’s nothing compared to the life of a functional enterprise.

For you to have to pay “years of salary” the employee must have been with you for a very long time - as in decades. Considering most companies don’t live to 2 years, the odds of it happening to you are very slim. Labor laws exist to protect the weak part against the possible abuses of the company. You must agree the harm a company can do to its employees is far greater than what an individual employee can do to a company. And this is why unions exist: because collectively is the only way the employees have teeth.