In order to foster economic growth and reduce unemployment, Provisional Measure No. 905 was published on 12/11/2019, establishing the Green and Yellow Labor Contract and amending other provisions of the labor legislation.
- Green and Yellow Employment Contract:
The main novelty brought by the Provisional Measure is the institution of a new type of employment contract aimed at people between 18 and 29 years of age who have never had a work record in their CTPS, the so-called Green and Yellow Employment Contract.
Such contracts may only be entered into from 01/01/2020 to 12/31/2022.
This contract will be for a determined term and is intended for employees earning up to 1.5 minimum wages, which will be increased monthly by the proportional 13th salary and proportional vacation plus one third.
The employer may add to the monthly remuneration the advance payment of the FGTS compensation in case of dismissal, as long as it is agreed between the parties. In this case, the indemnity will be 20% of the amount of deposits made. And the monthly FGTS rate will be only 2%, regardless of the salary received by the employee.
The employer will be exempt from paying the employer's contribution to the INSS (20% on salaries), the System "s" rates and the education allowance.
- Changes in the CLT:
The Provisional Measure also makes some important changes to the CLT.
The social contribution of 10% on the amount of FGTS paid by employers in cases of dismissal without cause was extinguished.
Work on Sundays and holidays will be permitted, but in the commercial and service sectors, the weekly paid rest period must coincide with a Sunday at least once every four weeks, and in the industrial sector, rest on Sundays must occur at least once in seven weeks.
The 6-hour working day for bank employees will only apply to employees who work exclusively at the cashier's desk, and a longer working day may be agreed upon by individual written agreement.
For other bank employees, the 8-hour daily workday applies. And if the classification is ruled out by a court decision, the recognized overtime hours will be deducted or compensated with the amount received by the employee due to the bonus for function.
The salary nature of the food supply was removed, whether in natura or through tickets, vouchers, coupons, electronic cards, etc.
The form of calculation of labor debts was altered: monetary adjustment will be made using the IPCA-E index, plus default interest equivalent to the index applied to savings accounts.
The legislation on PLR has been adjusted to permit the simultaneous adoption of any negotiation procedures and the establishment of multiple profit sharing programs.
Labor fines were updated and standardized according to the severity of the infractions and the size of the companies.
The Conduct Adjustment Agreement in the labor field and the Inspections, Embargoes and Interdictions were also regulated.
The law firm Barcellos Tucunduva is available to provide all kinds of advice in the labor area. If you have any questions or requests, do not hesitate to contact Naiara Insauriaga([email protected]) and/or Nelson Raimundo de Figueiredo([email protected]).
