Bolsonaro signs law to allow agreements between debtors and government

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President Jair Bolsonaro signed a new law allowing agreements to be made between debtors and the federal government. The negotiations require counterparts from both parties, they cannot include fines for criminal court convictions and labor debts, and the final value of the negotiation cannot be less than 50 percent of the total outstanding debt.

Debtors can repay revenue authorities in installments of up to 84 months, with an exception for small and very small enterprises and individuals, which can enjoy reductions of up to 70 percent paid over 145 installments.

Green and Yellow Work Contract

The House of Representatives, meanwhile, approved the bill creating the so-called “Green and Yellow Work Contract,” a new model of hiring that will reduce charges to employ young people between 18 and 29 years old who are looking for their first job.

These benefits will last for up to two years and will also apply to people over 55 and those out of work for more than 12 months. These hires cannot be made to supply existing job openings, only for new jobs. The maximum salary of these “green-and-yellow” workers cannot exceed BRL 1,558.

The Senate has yet to review the bill approved by the lower house and has until April 20 to do so. If it is not approved, the measure will expire.