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New government will inherit good rail projects to be executed in the short term
In September, BNDES approved four credit transactions for three different companies in the rail sector, totaling almost half a billion Brazilian Reais for the revitalization of lines, maintenance of equipment, and purchases of new railcars and machinery. This measure is in line with the new governmental policies and directives for the promotion of the railway sector, which, since 2007, when the North Section of the North-South Railroad was subject to a sub-concession, has been suffering from a lack of consistent privatization projects.
Project bonds and the Brazilian market
The infrastructure financing sector in Brazil has undergone significant structural and strategic changes in the last two years. These changes were mainly focused on the strategic redefinition of the National Economic and Social Development Bank (BNDES), which has gradually withdrawn from its centralizing role in financing transactions to assume a profile more complementary to the capital market, with new financing conditions and the adoption of the Long-Term Rate (TLP), which replaced the Long-Term Interest Rate (TJLP).
Extension of paternity leave in cases of twins shows possible tendency
The extension of paternity leave and maternity leave for cases of birth of twins has generated recurrent discussion, although the bill on the subject was already rejected in 2009.
Discounts granted by food voucher operators represent a high risk for companies registered with the PAT
Ordinance No. 1,287/2017, published in December by the Ministry of Labor, prohibits the granting of a "negative service fee" under the Worker's Food Program (PAT). This fee represents a discount granted by meal and food card operators as a way to become more competitive and attract customers. In practice, the purchasing company acquires a monthly credit to be distributed via cards to its employees, but disburses a smaller amount due to the discount granted.
ICMS excluded from the tax base of contributions to PIS and COFINS - position of the RFB
On March 15th, 2017, the Federal Supreme Court (STF) judged Extraordinary Appeal No. 574.706/PR (with recognized general repercussion), in which it was established that the ICMS is not included in the tax base for contributions to PIS and Cofins.
Confidentiality of information obtained during the employment contract transcends the contractual relationship
Every labor relationship is based on mutual trust between the parties. Every day, new products are created, new production techniques are implemented, and new markets are pursued. Employees have access to information that, if disclosed, may jeopardize the earnings of their companies and their very existence.
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