With the end of the term for Executive Order No. 927 (MP 927) to be converted into law on July 19, the measures proposed in it to tackle the covid-19 pandemic can no longer be used.

 

Published on March 22, MP 927 put into place various changes in the laws and regulations to preserve employment and income and to face the financial crisis during the state of public calamity, making rights and procedures under the Consolidated Labor Laws (CLT) more flexible, among which we highlight:

 

  • Possibility of changing in-person work arrangements to teleworking at the employer's discretion
  • Acceleration of individual vacations
  • Granting of company-wide vacations
  • Enjoyment and acceleration of holidays
  • Hours bank with offsetting period of up to 180 days
  • Suspension of administrative requirements in occupational safety and health
  • Deferment of payment of the Guarantee Fund for Length of Service (FGTS)

 

After the expiration of MP 927, employers will no longer be able to avail themselves of such measures in the forms and with the features proposed therein. The exact terms of the CLT control again. The great concern is: what happens to the legal relationships established during the term of the MP and in the form it provides?

 

As of July 21, the Brazilian Congress will have 60 days to issue a legislative decree regulating the issues arising under relations that occurred during the period of validity of MP 927, especially regarding its future effects. If the Brazilian Congress does not respond within this period, the guidelines of Executive Order 927 will be applied to the acts carried out during its validity.

 

We will continue to monitor the evolution of this topic and any developments.