Brazil, Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados updates

Employment & Benefits

Contributed by Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados
First impressions: labour reform one year on
  • Brazil
  • 07 November 2018

Almost one year on from the enactment of Law 13467/17 (the labour reform), early feedback suggests that the reform has proved to be an effective and positive change. In particular, the reform has increased the use of remote workers, reduced the imbalance of power between employers and employees, made union contributions voluntary and reduced the number of labour-related lawsuits.

Supreme Court upholds labour reform's ban on mandatory union contributions
  • Brazil
  • 12 September 2018

When the labour reform came into force, it amended the provision requiring employees to pay annual contributions to relevant unions, instead making union contributions optional. After the reform was enacted, more than 15,000 lawsuits were filed to challenge union contribution-related matters. The Supreme Court recently ruled that the end of mandatory union contributions was constitutional.

Arbitration now permitted for employment disputes
  • Brazil
  • 18 July 2018

The recent labour and employment reform enacted in Brazil has introduced important changes to labour and employment relations. One of the principal changes is the introduction of arbitration for the resolution of employment disputes. Although the changing law requires a change of mindset, employers should take advantage of it and begin to consider the possibility of instituting arbitration for certain employment contracts.

How to avoid overtime costs: overview of compensatory time off agreements
  • Brazil
  • 23 May 2018

In Brazil, employees who work overtime are entitled to statutory premium pay at one-and-one-half times the regular rate. In the past, the courts often voided compensatory time off agreements and granted overtime payment claims to employees on the grounds that their employer had failed to comply with legal requirements. However, the 2017 labour reform introduced more flexible requirements, which should curb litigation on compensatory time off agreements and encourage their use.

Impact of labour reform on awards paid to employees
  • Brazil
  • 07 February 2018

The discussion regarding the legal nature of awards is not new to Brazilian labour courts, especially because amounts paid as awards could be considered salary, obliging the employer to include the award in the employee's salary and pay him or her every month or include this amount as a basis for determining the employee's labour rights. The legislative branch has tried to clarify this matter, defining the legal nature of awards, as well as the concept and legal criteria for their application.


White Collar Crime

Contributed by Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados
New government measures to tackle corruption: does the buck stop here?
  • Brazil
  • 18 March 2019

Despite the steps taken by Brazil to fight corruption in recent years, it remains one of the main challenges for the country. Mindful of this, the new government – which came into power in 2018 on the back of its vow to fight corruption – has promised a series of measures to tackle the issue. The measures include toughening prison sentences for corruption-related crimes, separating investigations involving high-level officials and making illegal campaign donations a criminal offence.

Brazilian enforcement in 2019: what to expect
  • Brazil
  • 21 January 2019

The new year started with a new government taking office. Naturally, this has led many to speculate what the government's priorities and policies will be. In particular, enforcement policies are receiving more attention than during previous inaugurations, largely due to the widespread corruption scandal following Operation Car Wash and the appointment of Sergio Moro (former lead judge overseeing Operation Car Wash) as the minister of justice.

Digital evidence, criminal investigations and due process of law
  • Brazil
  • 10 December 2018

The Superior Court of Justice recently appraised a noticeable theme regarding personal data protection from a criminal law perspective: the validity of police evidence obtained from smartphones without a specific judicial order to do so. The precedent has had a strong effect on investigations of varying scope and importance. Two recent examples occurred in the wake of high-profile anti-corruption and anti-money laundering investigations.

Corporate liability for economic crimes
  • Brazil
  • 12 November 2018

A recent review has detailed the limited application of corporate criminal liability and the indirect legal consequences that companies may face following criminal investigations targeting individuals. Corporations may face harsh administrative and civil penalties for business crimes which only individuals can be held liable for. This is especially true where cross-border investigations result in white collar crime regulations becoming increasingly denationalised and tougher than ever before.

Corporations and law enforcement
  • Brazil
  • 08 October 2018

Brazilian law's limited establishment of corporate criminal liability does not mean that companies cannot be seriously affected by criminal law enforcement and subject to an extensive range of substantive and procedural matters. Companies' executive boards are not always prepared for such matters, which – especially when criminal investigations attract considerable media attention – can also raise serious and costly reputational issues.


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