Labor and employment
Flexible compensation for dismissal without cause according to the level of reduction in wages and work hours or temporary suspension of employment contracts encourages companies to adopt measures established in the government's emergency program.
On April 1, 2020, the Federal Government published Executive Order No.
As an alternative measure to tackle the current crisis scenario caused by covid-19, Executive Order No. 936/20 was published on April 1 (MP 936), which stipulates the conditions for a proportional reduction in the hours and wages of employees and for the temporary suspension of employment contracts.
Executive order reiterates the federal government's concern with inspection and fining of companies in the event of non-compliance with serious obligations, especially the procedures applicable to proportional reduction of work hours and salary and temporary suspension of employment contracts.
The suspension must be agreed upon between employee and employer through an individual written agreement and sent to the employee two days in advance.
The new form of the coronavirus, called SARSCoV-2 and causing covid-19, was first discovered in Wuhan, China, in November of 2019.
On April 1, 2020, the Federal Government published Executive Order No.
Healthcare workers will be able to work overtime beyond the agreed-upon or legal work hour limit, but weekly paid rest must be respected in order to avoid being cited for an administrative infraction.
All employers, including families hiring domestic workers, may suspend payment of the FGTS for March, April, and May of this year and pay the debt within up to six installments in the second half-year period. Click to see how.
By accelerating employee vacations, companies will be able to count on having their entire staff for up to 12 months in order to try to increase production and sales after the current crisis is over. Find out how MP 927/20 allows one to reduce the impact of this measure on cash flow.
Executive Order No. 927/20 provides for the suspension of procedural deadlines for presenting defenses and lodging appeals in administrative proceedings for 180 days. In addition, labor inspectors should advise companies on how to address possible irregularities before issuing an infraction notice.
Companies may accelerate federal, state, district, and municipal non-religious holidays by giving employees a 48-hour prior notice.
