This article summarises the practical impact of Law 14,020/2020 and Decree 10,422/2020 on Provisional Measure 936 and employers. The new rules concern the reduction of working hours and salaries and the suspension of employment agreements, including with regard to pregnant, retired or disabled employees.
The Ministry of the Economy and the Ministry of Health recently published Joint Ordinance Number 20, which provides the measures that employers must observe in order to prevent, control and mitigate the risk of COVID-19 transmission in their workplaces. This article highlights what employers need to know about the joint ordinance.
Article 29 of Provisional Measure 927, enacted on 22 March 2020, states that infection with COVID-19 is not considered a labour-related disease unless a relationship between the disease and the employee's job or occupation can be evidenced. Several institutions, especially political parties, have questioned the constitutionality of this provision before the Supreme Court.
Provisional Measure 936 (PM 936) has been published and aims to maintain employment and preserve employees' income, while ensuring businesses continuity and reducing the social impact of the COVID-19 pandemic. This article highlights the main aspects covered by PM 936 and the relevant issues affecting labour relations.
With the coronavirus (COVID-19) pandemic continuing to affect the world – and employment law – this article answers FAQs for Brazilian employers. For example, can companies cancel job offers prior to the start date? And who pays for employees' time away from work due to COVID-19?
Provisional Measure 905/2019 (PM 905) was recently published in the Official Gazette, creating a new type of employment agreement specifically designed to incentivise companies to offer individuals aged between 19 and 29 their first formal job in exchange for benefits relating mainly to payroll taxation. The final decision regarding PM 905 should happen after April 2020 but, in the meantime, companies should seek legal advice while implementing the proposed changes.
The Labour Code provides for two payments which eligible employees can receive in addition to their base salary: the hazard allowance and the risk premium. Since 2015, the Superior Labour Court panels have issued conflicting decisions on whether employees can receive the hazard allowance and the risk premium simultaneously. Now, the Superior Labour Court has determined that the additional payments cannot be received simultaneously, even if employees are exposed to different adverse conditions.
In a recent decision, the Supreme Court addressed an important question relating to the day-to-day activities of companies operating in Brazil: is the outsourcing of services allowed without restriction or should it be limited to non-core business activities, as set out by Precedent 331 of the Superior Labour Court? This decision is relevant because it will affect the standards adopted by the Brazilian labour courts in relation to outsourcing.