Brazil extends work contract suspension program

Brazil extends work contract suspension program
Jair Bolsonaro. Photo: Marcos Côrrea/PR

As expected, the federal government has extended the period during which companies can suspend work contracts (for another 30 days) or reduce hours and wages (60 extra days). Created in April to help companies weather the coronavirus crisis, this emergency program forces the federal government to partially compensate wage cuts. 

Intermittent workers will be able to cash in on one extra BRL 600 emergency payment.

There is a catch, however. The decree published on today’s Federal Register includes a crucial disclaimer: payments will only be made if the government is able to bear the costs. 

According to the government’s own data, over 12 million workers have been affected by contract suspensions or wage cuts — half of the initial estimates.

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