2nd October 2019
The so-called Economic Freedom law, was sanctioned and released by the Official Gazette (“DOU”) on 20th September 2019. The new law introduces the Declaration of Rights to Economic Freedom, establishing rules for the protection to the freedom of initiative and development of economic activities. MSI's Brazil law member DDSA - De Luca, Derenusson, Schuttoff e Advogados provides further insight into the change in regulation, which might of be interest to foreign businesses doing business in Brazil.
It establishes how the Government should act on its legislative and regulatory roles and modifies several statutes including part of the Brazilian Labor Code (the “CLT”).
Because the Freedom of Economy PM changed some labor rules, it was originally referred by press as a “mini labor reform”. However, after “shrinking” under Congress and Senate reviews, we may say that Law # 13,874/2019, as approved, essentially represents adequacy to reality, and not drastic changes to the Labor Code.
Among the modifications to Brazilian statutes just introduced by Law 13,874, we highlight the following:
Important aspects were excluded from the original version by Senate to enable the approval, including the possibility to offset the weekly rest within the same week and general authorization for work on Sundays, which remains limited to a list of authorized businesses or dependent on administrative authorization.
DDSA - De Luca, Derenusson, Schuttoff & Advogados (DDSA) is a full service law firm based in Sao Paulo, Brazil with a deep knowledge of our clients’ businesses and different markets.
Our firm has adopted a global, multidisciplinary client management model, which addresses all of the areas required to solve our clients' varied demands. Our core values include quality, professionalism and ethics, always striving to offer a customised client service.
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