Emergency employment and income maintenance program - Executive Summary

PERIOD OF VALIDITY

• One hundred and twenty days from the date of publication of this Provisional Measure

 

OBJECTIVES

• Preserving employment and income;
• Ensuring continuity of work and business activities; and
• Reduce the social impact resulting from the pandemic period.

ACTIONS

• Payment of the Emergency Employment and Income Maintenance Benefit (BEM);
• Proportionate reduction in working hours and wages; and
• Temporary suspension of the employment contract.

DOES NOT APPLY

• At the level of the Union, the States, the Federal District and the Municipalities:
• (a) direct and indirect public administration bodies; and
• b) public corporations and mixed-capital companies, including their subsidiaries; and
• To international organizations.

THE PROPERTY WILL BE PAID IN THE EVENT OF

• Proportional reduction of working hours and salary; and
• Temporary suspension of the employment contract.

ADMINISTRATIVE PROCEDURES FOR REQUESTING THE GOOD

• The employer shall inform the Ministry of Economy of the application of the reduction or suspension within ten days from the date of the conclusion of the agreement;
• The first instalment shall be paid within thirty days of the date of conclusion of the agreement;
• The GOOD shall be paid exclusively for the duration of the reduction or suspension.
• If the information to the Ministry of Economy is not provided on time:
• I - the employer will be liable to pay the remuneration in the amount prior to the application of the reduction or suspension, including the respective social and labor charges, until the information is provided;
• II - the starting date of the BEM will be established on the date on which the information has been effectively provided, and the benefit will be due for the remainder of the agreed-upon period; and
• III - the first installment, subject to the provisions of item II, will be paid within thirty days as from the date on which the information has been effectively provided.

WILL BE REGULATED BY THE MINISTRY OF ECONOMY

• I - transmission of information and communications by the employer;
• II - granting and payment of the GOOD; and
• III - interposition of an appeal against decisions in relation to the Asset.

VALUE OF GOOD

• The value of the BEM will have as a calculation basis the value of the portion of unemployment insurance to which the employee would be entitled:
• I - in case of reduction, it will be calculated by applying the percentage of reduction on the calculation basis; and
• II - in the event of suspension, it shall have a monthly value:
• a) equivalent to one hundred percent of the amount of unemployment insurance to which the employee would be entitled; or
• b) equivalent to seventy percent of the amount of unemployment insurance to which the employee would be entitled, in companies with gross revenue in 2019 above 4.8 million.

THE PROPERTY SHALL BE PAID REGARDLESS OF

• I - completion of any vesting period;
• II - time of employment; and
• III - number of salaries received.

OBSTACLES TO RECEIPT

• Employee occupying a public office or position or a commissioned position of free appointment and exoneration, or holding an elective office; or
• In enjoyment:
• a) of continued benefit of the General Social Security System or of the social security systems themselves;
• (b) unemployment insurance, in any of its forms; or
• c) of the professional qualification benefit.

PROPORTIONAL REDUCTION IN WORKING HOURS AND SALARY

• For up to one hundred and twenty days

REQUIREMENTS:

• Preservation of the value of the hourly wage;
• Agreeing on an individual or collective agreement; and
• Proposal submitted at least two calendar days in advance.

REDUCTION PERCENTAGES

• a) twenty-five percent;
• (b) fifty per cent; or
• c) seventy percent.

CANCELLATION

• The working day and salary previously paid will be reinstated within two calendar days from the:
• I - the date established as the termination of the agreed upon reduction period; or
• II - the date of communication from the employer informing the employee of his decision to bring forward the end of the agreed reduction period.

REDUCTION PERIOD

• The final term of the agreement may not exceed the last day of the 120-day period.

TEMPORARY SUSPENSION OF THE EMPLOYMENT CONTRACT

• For up to 120 days
• In a sectorial, departmental, partial or totality of the workstations.

REQUIREMENTS

• Covenant by individual or collective agreement.
• Proposal submitted at least two calendar days in advance.

CONSEQUENCES DURING SUSPENSION

• You will be entitled to all benefits granted by the employer;
• Will be authorized to pay Social Security contributions to the General Regime of Social Security as an optionally insured worker.

REINSTATEMENT/CANCELLATION OF THE AGREEMENT

• In two calendar days from:
• I - date established as the closing date;
• II - date of communication of the employer's decision to anticipate the end of the agreed period.

NULITY

• If, during the suspension period, the employee maintains the work activities, even partially, by means of telecommuting, remote work or long-distance work, the suspension will not be characterized and the employer will be subject:
• I - the immediate payment of remuneration and social charges for the entire period;
• II - to penalties provided by law; and
• III - to sanctions provided for in a collective agreement or convention.

DIFFERENTIATED CONDITION - COMPENSATORY AID

• The company that has earned, in the calendar year 2019, gross revenue exceeding R$ 4,800,000.00 may only suspend the contract by paying a monthly compensatory allowance in the amount of thirty percent of the employee's salary, during the period of temporary suspension of the agreed employment contract.

STANDSTILL PERIOD

• The final term of the agreement may not exceed the last day of the 120-day period.

GOOD + COMPENSATORY AID

• The BEM may be accumulated with monthly compensatory aid.

COMPENSATORY AID

• Defined by individual or collective agreement;
• It will have an indemnifying nature;
• It will not integrate the IR calculation basis;
• It will not integrate the calculation basis of the social security contribution and other taxes levied on the payroll;
• Will not integrate the calculation basis of the value of deposits in the FGTS; and
• May be considered deductible operating expenses when determining the taxable income and the tax basis of the Social Contribution on the Net Income - CSLL of legal entities taxed by the taxable income.
• In the event of proportional reduction of working hours and salary, it will not be included in the salary owed by the employer.

STABILITY / WARRANTY

• I - during the agreed period of reduction or suspension;
• II - after the reestablishment of the working hours and salary or the end of the suspension, for a period equivalent to that agreed upon; and
• III - in the case of a pregnant woman, for a period equivalent to that agreed upon for the reduction or suspension, as from the date of termination of the maternity leave.

EARLY TERMINATION PAY

• Dismissal without just cause applied during the stability period will subject the employer to the payment of compensation in the amount of:
• I - fifty percent of the salary to which the employee would be entitled during the period of temporary job security, in the event of a reduction equal to or greater than twenty-five percent and less than fifty percent;
• II - seventy-five percent of the salary to which the employee would be entitled during the period of temporary job security, in the event of a reduction equal to or greater than fifty percent and less than seventy percent; and
• III - one hundred percent of the salary to which the employee would be entitled during the period of temporary job security, in the event of a reduction equal to or greater than seventy percent or temporary suspension of the employment contract.

EXCEPTION

• The indemnity does not apply to the employee's resignation, termination by mutual agreement, or dismissal for just cause.

COLLECTIVE AGREEMENT

DIFFERENT PERCENTAGES IN THE EVENT OF A REDUCTION

• Collective agreements may establish different percentages, as follows:
• I - without perception of the BEM for the reduction of working hours and salary by less than twenty-five percent;
• II - in the amount of twenty-five percent on the calculation basis for the reduction of working hours and salary equal to or greater than twenty-five percent and less than fifty percent;
• III - in the amount of fifty percent on the calculation basis for the reduction of working hours and salary equal to or greater than fifty percent and less than seventy percent; and
• IV - in the amount of seventy percent on the calculation basis for the reduction of working hours and salary equal to or greater than seventy percent.

TIME LIMIT FOR THE ADAPTATION OF PREVIOUS AGREEMENTS

• Collective agreements previously entered into may be renegotiated to adjust their terms within ten calendar days from the date of publication of the MP.

INDIVIDUAL AGREEMENT - ONLY IN THE FOLLOWING CASES

• I - with a salary equal to or less than R$ 3,300.00 (three thousand and three hundred reais); or
• II - with a college degree and a salary equal to or higher than twice the maximum limit of the benefits provided by the General Social Security Scheme.
• I - proportional reduction of working hours and salary by twenty-five percent; or
• II - proportional reduction of working hours and salary or suspension when the agreement does not result in a decrease in the total amount received monthly by the employee, including in this amount the BEM, the compensatory allowance and, in case of reduction of working hours, the salary paid by the employer for the hours worked by the employee.

RETIREES

• The implementation of the measures of reduction or suspension of the work contract by individual agreement will only be admitted when, in addition to the framework in the items described above, there is the payment, by the employer, of a monthly compensatory allowance, observed:
• I - the value of the compensatory allowance must be at least equivalent to the benefit that the employee would receive if there were no prohibition as provided in subparagraph "a" of item II of paragraph 2 of article 6;

a) of continued benefit of the General Social Security System or of the social security systems themselves, except as provided in the sole paragraph of Article 124 of Law No. 8213 of July 24, 1991]; and

• II - in the event of a company with gross revenue above 4.8 million in 2019, the total paid as compensatory aid shall be, at least, equal to the sum of the amount provided for in that provision (30% of the salary), with the minimum amount provided for in item I of this paragraph.

AGREEMENT BY PHYSICAL OR ELECTRONIC MEANS

• The acts required for the execution of individual agreements may be performed by physical or electronic means.

NOTIFYING THE UNION

• Individual reduction or suspension agreements must be communicated by employers to the union within ten calendar days from the date of their conclusion.

CONFLICT OF CLAUSES BETWEEN INDIVIDUAL AND COLLECTIVE AGREEMENTS

• If, after the execution of an individual agreement, a collective agreement with conflicting clauses is executed, the following rules must be observed:
• I - the application of the conditions established in the individual agreement with respect to the period prior to that of the collective bargaining; and
• II - as of the effective date of the collective agreement, the prevalence of the conditions stipulated in the collective bargaining, insofar as they conflict with the conditions established in the individual agreement.
• When the conditions of the individual agreement are more favorable to the worker, these will prevail over collective bargaining.

PREGNANT

• The event that characterizes the beginning of the maternity leave benefit has occurred:
• I - the employer must immediately notify the Ministry of Economy (pending regulations);
• II - the payment of the GOOD, the reduction or the suspension shall be interrupted;
• III - the maternity salary shall be paid to the employee under the usual terms, including the domestic servant ( 72 and 73 of Law No. 8,213 of 1991), so as to consider as full remuneration or as the last contribution salary the amounts to which they would be entitled without the application of the reduction or suspension measures.

ADOPTION

• The same rules apply to the insured or insured social security worker that adopts or obtains judicial custody for adoption purposes, in which event the maternity salary shall be paid directly by social security.

PRIMARY CONDITION

• The Emergency Program applies only to employment contracts already entered into by the date of publication of this MP - 04/27/2021.

MORE THAN ONE LINK

• Receives cumulatively for each bond with reduction or suspension.

INTERMITENT

• You have no right to the GOOD.

DOMESTIC HELP, APPRENTICESHIP AND PART-TIME WORK

• You are entitled to the GOOD.

MAXIMUM TIME

• The maximum time of reduction and suspension, even if successive, shall not exceed one hundred and twenty days.

EMPLOYEE ON NOTICE

• Employer and employee may, by common agreement, opt for the cancellation of a prior notice in progress and adopt the measures established by this MP.