On November 14, 2017, three days after the Labor and Employment Reform coming into effect, President Michel Temer issued a Provisional Measure amending the original bill sanctioned on July 14th, 2017.

Complying with the commitment assumed during the legislative process of approving the Bill of Law, the Provisional Measure issued by President Temer addresses the main controversial changes of Federal Law No 13.467/2017, which caused a national uproar over the last 3 months.

Among those points, we highlight the following ones:

  1. Amendments to the rules regarding the calculation of compensation of non-material damages, aiming at unlinking compensations from employees’ salaries;
  2. Possibility of implementing 12x36 shifts solely through collective bargaining agreements, except in the health sector, in which it may be individually negotiated;
  3. Amendments to the rules regarding work of pregnant women, limiting the possibility of working under unhealthy conditions;
  4. Amendments to the rules regarding the hiring of independent contractors in order to prohibit the imposition of exclusivity obligation;
  5. Specific regulation of intermittent employment contracts, in order to cover open gaps of the original bill;
  6. Clarification of the duties and activities that will be performed by the commission of employees on their representation; and
  7. Implementation of limits for the payment of allowances and premiums without salary nature.

Although the Provisional Measure immediately comes into effect as from its issuance and publication (i.e. as of November 14, 2017), its transformation into a Federal Law relies on the approval by the Legislative. Therefore, Brazilian National Congress will have 60 days, renewable once for equal term, to approve, amend or reject the Provisional Measure presented by the President.

In the event of such voting taking longer than 45 days, the Provisional Measure will lock up the voting agenda of the house of representatives, which can only resume its regular schedule after voting the Provisional Measure.

After being approved by the Brazilian National Congress, the Provisional Measure returns for the final sanction by President Temer, after which the Provisional Measure will come into effect as a Federal Law.

On the other hand, in the event of being rejected by Brazilian National Congress or not approved within 120 days, Brazilian congressmen will be responsible for drafting a legislative decree to settle the effects of the Provisional Measure for the period it was effective.

The Provisional Measure maintained the non-obligation of paying union dues to labor unions. Thus, after the Labor and Employment Reform, union dues will continue not being mandatory.

Machado Meyer Advogados will continue following the development of this matter and its possible outcomes.

 

DOWNLOAD THE COMPARATIVE TABLE OF THE MAIN POINTS CHANGED BY THE LABOR REFORM, AS AMENDED BY THE PROVISIONAL MEASURE No. 808/2017

 

DOWNLOAD THE E-BOOK WITH THE MAIN ASPECTS CHANGED BY THE LABOR REFORM, AS AMENDED BY THE PROVISIONAL MEASURE No. 808/2017