Brazilian Labor Reform: What Changes for Employers and Employees

The approval of the modernization of labor laws will change work relations in the country. The government’s expectation is that the new rules will contribute to better working conditions for employees and more security for employers when hiring. Check out the main changes approved by the Brazilian Congress.
Collective Agreements
With the changes, collective conventions and agreements will have the force of law. Thus, unions and companies can negotiate working conditions with employees. However, matters such as unemployment insurance, minimum wage, maternity and paternity leave, and paid weekly rest cannot be negotiated.
Vacation
Currently, it is only allowed to split the rest into two parts. With the new law, vacation can be split into up to three parts as long as one of the periods is at least 15 consecutive days. This definition of installment must be defined by collective agreement or convention.
Working Hours
The approved text establishes the possibility of a 12-hour workday with 36 hours of rest, respecting the limit of 44 hours per week. The 12×36 shift totals 176 hours of work per month, while the 44-hour shift totals 196 hours.
Breaks
Employees and employers will be able to negotiate the format of breaks during the workday. However, it must have a minimum of 30 minutes. If the worker believes that a shorter break (of at least 30 minutes) to leave earlier is better, this can be negotiated in a collective agreement or convention.
Home Office
The new law allows work to be performed from home. However, for it to take effect, a prior agreement between employer and employee is required. The regulation even covers expenses related to the use of equipment, energy, and internet.
Part-Time Work
It can reach up to 30 hours per week, with no possibility of overtime. Another option is 26 hours per week, with the possibility of 6 hours of overtime per week.
Dismissal
The worker has all their rights preserved in the event of dismissal. However, they gain an additional option for termination. If there is mutual agreement, the employment contract can be terminated with the payment of half the notice period and half the 40% fine on the FGTS balance. The employee may also withdraw up to 80% of the amount deposited by the company in the FGTS account. In this case, however, they will not be entitled to unemployment insurance.
Contract Termination
There will no longer be a requirement for the homologation of contract termination to be done at unions. It will now be done at the company itself, in the presence of the employer’s and employee’s lawyers – who may have assistance from the union.
Outsourcing
The project proposes safeguards for outsourced workers, such as an 18-month quarantine to prevent the company from dismissing the permanent worker to rehire them as outsourced.
Fine
The employer who keeps an unregistered employee will pay a fine of R$ 3,000 per employee. For small businesses, this amount will be R$ 800. Currently, companies are subject to a fine of one regional minimum wage for each unregistered employee.
Source: Portal Brasil