15 Apr 2020

Brazil: New labor measures due to the coronavirus pandemic

MSI's Brazil law member DDSA provides an update on the new labour law measures that have been introduced in Brazil during the COVID-19 crisis including reduction in wages, hours of work and suspension of employment contracts.

Provisional Measure 936/2020 institutes the Emergency Employment and Income Maintenance Program and provides on supplementary labor measures to confront the state of emergency and the public health emergency resulting from the coronavirus (COVID-19). The Provisional Measure creates the Emergency Employment and Income Preservation Benefit[1] (“Benefit”), payable by the Government in the following events:  (i)  proportional reduction in the hours of work and wages; and (ii) temporary suspension of employment contracts. [1] The base of calculation of the Benefit shall be the monthly amount of the unemployment insurance to which the employee would be entitled to. View and download the full analysis of the measures

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