DDSA provides overview of the Brazilian Labour Reform

The Brazilian Labour Reform will come into force on 11 November 2017, modifying over 100 articles of the Brazilian Labour Code (the so-called “CLT”). MSI's Brazilian law member DDSA - De Luca, Derenusson, Schuttoff e Azevedo Advogados provides an overview of the most relevant changes employer need to be aware of.

Employment Contracts

• Intermittent work or “Zero-hours agreements”*: This is a new type of agreement allowing employers to pay on demand and employees to refuse work.
• Independent work: Admission through an independent arrangement of autonomous work would exclude the statutory employment system even if the relationship is exclusive and work is on a regular basis.
• High-level employees’ autonomy to negotiate: Employees with a university diploma and a monthly salary equal to, or greater than double the social security benefits limit (currently 11,062.62 BRL) will be at more liberty to negotiate certain employment conditions with their employers. In addition, they will be able to include an arbitration clause in their employment contracts.
• Vacations: Authorisation to split vacation days into three periods; provided that one period is of at least 14 consecutive days and none is less than 5 days.
• Compensation: Expense allowances (“ajudas de custo”), travel expenses, meals (except those paid cash), rewards (rewards to outstanding performances) and other allowances (“abonos”) even when frequently paid, are not to be considered ‘salary’.
• Salary equalisation: Creation of further criteria and exceptions. Only employees that work at the same premise may be compared. The difference in terms of duration of employment should be of 4 years at the most (2 years in the same position is already required today). Employers will have the authority to create exceptions to the equalisation rule by creating their own salary plans. Registration with the Inspection Body of the Ministry of Employment (DRT) will no longer be required.
• Additional pay for position of trust: Suppression will be authorised in case an employee returns to his/her previous position, regardless of the time lapsed.

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About DDSA - De Luca, Derenusson, Schuttoff e Azevedo Advogados - Sao Paulo

DDSA - De Luca, Derenusson, Schuttoff e Azevedo 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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