Economy

Brazil’s Labor Reform provisions expired. Now what?

labor reform provisions
Lawyers, employers are shaky on how the Labor Reform will apply. Photo: Shutterstock

Back in July 2017, Brazil’s Congress passed a highly controversial labor reform proposed by President Michel Temer’s administration. Dubbed as “extremely pro-business,” the reform was fought by many leftist and centrist sectors – many of which claimed that the reform marked the end of Brazil’s consolidated labor laws.

But the reform that came into force on November 11 was a toned-down version of the first bill. President Temer signed “Provisional measure 808” (MP-808), altering 17 articles of the labor reform. Provisional measures are designed by the president’s office and hold the same value as laws. They are effective immediately but must be confirmed within 120 days by Congress, or they lose their validity.

Ironically, MP-808 expired last week, just days before Labor Day – a date created to celebrate workers’ struggles. With protections to shield minorities and vulnerable workers being withdrawn, lawyers, employers, and employees alike are shaky on how the legislation will apply. Here’s what’s changing, and how.

Changes see employee rights rollback

Provisional measure 808 required a collective agreement for companies to establish workdays in the compensation scheme known as 12×36 (12 hours of work for 36 hours...

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