Brazilian Labor Law Reform

Last Friday (July 14, 2017), President Michel Temer approved Legislative Bill (Projeto de Lei) No. 38/2017, the so-called “Labor Reform”, after it was approved by the Brazilian Senate (Senado Federal) on Tuesday (July 11, 2017), which proposed numerous provisions for reform of the Brazilian Labor Code (Consolidação das Leis do Trabalho – CLT).

Contrary to expectations that he would veto specific provisions, the President sanctioned the full text of the Bill, which was subsequently enacted into Law.

Amongst other changes to the CLT, some of the most notable are the following:

  • New types of contracts, e.g. “intermittent” work contract (rough equivalent of zero-hour contracts);
  • Modification of provisions relating to working hours;
  • Specifies the regulation of home office work regime; and
  • Reinforces the validity of collective negotiations.

The President may sign imminent Executive Order(s), given that the Bill’s text was approved in full.

The new legislation not only creates instruments to improves the work relationships, but also opens opportunities to better results for those who are able to identify competitive advantages in the new law.

Our Labor team has mapped some of this opportunities and is ready to share those in line with your business needs.