Brazil’s Provisional Executive Order 927/2020 Passed to Combat Effects of COVID-19

Recently the Brazilian federal government enacted labor measures to tackle the “state of calamity and emergency of public health,” resulting from COVID-19. According to the publication, employers can adopt some measures of flexibility in regards to the labor relationships. You can read SCIATH’s full report here.

Highlights of their report are listed below.

Remote Work/Home Office

The employer may, at their own discretion, change employees’ labor regime (apprentices and interns included) from presential to any kind of remote work. Also, employers may determine that presential work be resumed, regardless of existing agreements, both individual or collective.

Salary Reduction

Owing to the “state of calamity and emergency of public health,” which comprises force majeure, the Provisional Executive Order authorizes a general employee salary reduction. However, such a reduction shall be implemented on a pro-rata basis, according to each employee’s salary. It cannot go beyond 25% and regional minimum wages must be taken into account.

Individual Labor Agreement

During the “state of calamity and emergency public health,” individual labor agreements prevail over legal and negotiating instruments (such as collective agreements and conventions), but not over constitutional precepts.

Advancing Individual Vacation

In the case of advancing individual vacation, the employer shall notify employees, with a minimum 48-hour notice, either in writing or electronically, that there may be a negotiation to advance upcoming vacations, by means of a written individual agreement.

Collective Vacation

Vacations shall be announced with a minimus 48-hour notice. Prior announcements to the Ministry of Economy’s local entity and unions representing professional classes are dismissed.

Advancing Holidays

Holidays may be used to make up for comp time.

Comp Time

The employer shall have the possibility of adopting comp time by means of an individual or collective agreement.

Safety and Occupational Medicine

During the “state of calamity and emergency of public health,” compulsory occupational health examinations, as well as clinical and complementary examination shall be suspended.

FGTS Deferment

The Guarantee Fund for the Length of Service, or FGTS, withholding for March, April and May 2020 shall be suspended by employers.

 

Asinta’s Brazilian Partner, SCIATH, provided this update on Brazil’s Provisional Executive Order 927/2020.