The Ministry of Labor and Employment on Tuesday (Apr. 7) released a list of 169 employers newly included in the Registry of Employers who have subjected workers to conditions analogous to slavery​.

Among the names included is Chinese automaker BYD, located in an industrial complex in Camaçari, in the state of Bahia. The company’s first automobile factory in Brazil, focused on the production of electric and hybrid vehicles, was inaugurated in October 2025 with an investment of BRL 5.5 billion.

Penalty

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The Ministry of Labor and Employment, through the Labor Inspection Division of the Regional Labor Superintendency in Bahia (SRTE/BA), carried out a series of enforcement actions in Camaçari between December 2024 and May 2025. These actions included inspections of both the construction site and the housing provided for migrant workers involved in building the industrial facility.

In one such operation on December 19, 2024, 471 Chinese workers were identified as having been brought into Brazil illegally, 163 of whom were rescued from slave-like labor. In the following months, the Tax Audit Office continued collecting statements, analyzing documents submitted by the companies involved, and carrying out other investigative measures.

According to the inspection team, the investigation concluded that the Chinese automaker bore direct responsibility for the illegal entry of the 471 Chinese workers into Brazil - including the 163 rescued from slave-like labor - to work on the construction of its industrial facility.

Although BYD presented service contracts with other companies, tax auditors found that, in practice, the workers were directly subordinate to the automaker. An employment relationship was thus established, in accordance with the criteria of Article 3 of the Brazilian Consolidated Labor Laws (CLT).

The tax auditors also found evidence that the automaker itself committed fraud against Brazilian immigration authorities, aiming to facilitate the entry of foreign workers into the country without proper registration and in violation of current legislation.

Another significant violation notice issued during the inspection concerns the subjection of workers to conditions that violate labor protection standards, including instances of forced labor and conditions analogous to slavery.

According to the inspection team, the finding was based on the identification of three main elements: forced labor, degrading working conditions, and excessively long work hours.

Degrading conditions

The workers were subjected to extremely precarious living and working conditions. They slept on beds without mattresses and had no lockers, forcing them to keep their personal belongings alongside work tools and food, both raw and cooked.

In one of the dormitories, there was only one bathroom for every 31 people, forcing them to wake up at 4 am to prepare for the workday. The kitchens operated in unsanitary conditions, with food stored near construction materials. Only one dormitory had a makeshift dining hall, which led most workers to eat their meals in their beds. The water they drank came directly from the tap, without any treatment.

Exhausting workday

The imposed workday lasted at least 10 hours, with no regular days off. One injured worker reported going 25 days without a day off. During the inspection, several health and safety risks were identified, leading to the suspension of deep excavations and the partial closure of a dormitory and a bench-mounted circular saw due to missing safety guards. Restrictions on freedom of movement were also found, as workers needed authorization even to go to the market.

In January of this year, BYD signed a Conduct Adjustment Agreement (TAC) with the Labor Procecution Office worth BRL 40 million.