Main Points Of The Brazilian Labor Reform

Negotiation with the Union prevailing over the Law

Companies can negotiate with the Union of employees several matters, such as reduction of salary with job stability, working hours, remuneration based on productivity, among others. Health and safety matters and the rights established by Federal Constitution cannot be freely negotiated. This provision aims at creating a safer environment for collective negotiations, which will prevail over any possible law on the same matter.

Working hours

Commute hours are extinguished, i.e, the time from home to work by transportation granted by the employer due to the lack of public transportation will not be considered part of working hours as it is currently. Bank of hours limited to 6 months can be implemented through individual agreement rather than through collective bargaining agreements. If the offsetting of hours occurs within the month, it is possible to be a non-written agreement. Telecommuting - Home Office

The terms and conditions of Telecommuting must be established in the labor agreement, including the regulation about equipment, expenses, health and safety prevention measures. Labor Reform classifies a Telecommuting employee as not entitled to control of working hours and overtime payment.

Intermittent work

Employers may hire employees to work for specific hours, days or months.

Vacation

Currently, as a general rule, vacation must be taken by employees in only one period. According to the Labor Reform, employees will remain entitled to annual 30 day paid vacation, however, the vacation period can be taken in up to 3 periods. One of the period must not be shorter than 14 days and the others cannot be shorter than 5 days.

Premium

Premiums, even if paid on habitual basis, will not be part of the employees' salary, thus not subject to labor and social security charges. Premiums are any discretionary payment made to an employee or group of employees due to outstanding performance.

Equal pay for equal work

Labor Reform establishes several changes in the rules related to equal pay for equal work. As an example, to be entitled to the same pay, the compared employees should work in the same branch. Currently, employees working in the same city, even in different branches, are entitled to request equal pay for equal work.

Pregnant employees

Pregnant employees must not work in hazardous conditions if her doctor states so. If there is no way for the employee to perform the activities in a...