12 changes in labor and social security rules that your company should monitor

Find out the latest labor and social security developments that employers should keep track of

By Luciana Lupinucci and Luzinete Rosário

Changes in the Brazilian labor landscape have been constant, extensive, and, for many employers, challenging to keep up with. Laws are constantly evolving and staying up to date has never been such a daunting task.

With new rules recently implemented, it is crucial to be aware of current requirements to ensure compliance and prevent risks and penalties.

In this article, we have compiled some points of concern that companies should monitor and comply with. Check them out:

1. Labor lawsuits on eSocial

After being postponed twice, the obligation to report information on labor claims via the eSocial platform will become effective as of the October 2023 reporting month.

From then on, said event must be submitted to the system by the 15th of the month following the date on which a labor lawsuit is concluded with a final and unappealable judgment, settlement or court order.

Given this new requirement, it is important for companies to coordinate their personnel departments and legal counsel to exchange information on this matter.

Read more: Labor lawsuits on eSocial: major change goes into effect in October

2. Impact of changes to the EFD-Reinf

The EFD-Reinf is undergoing changes with the inclusion of federal withholding taxes, the R-4000 events, starting from the September 2023 reporting period. This is a step towards transitioning from the DIRF – which will be discontinued in 2025 – to the EFD-Reinf.

Once the events are filed, the eSocial and the EFD-Reinf will automatically supply the DCTFWeb with data for the issuance of a single payment form covering all these taxes. As a result of this unification, companies will have to align their tax, labor and social security information more comprehensively than ever before.

Further reading: EFD-Reinf 2023: be mindful of changes due to the R-4000 series of events

3. Digital FGTS

The implementation of the Digital FGTS is scheduled for January 2024, but the new system is already operating in test mode and available to employers. This functionality will replace the SEFIP in generating payment slips for the Monthly Employees' Severance Fund (FGTS) and the severance contributions. 

One major takeaway is the change in the deadline for making monthly FGTS payments, which will be extended to the 20th day of the month following that to which the payment refers. However, until the platform is fully implemented, the current deadline of the 7th day of the following month remains in effect.

Read more: FGTS Digital – Implementation schedule

4. Equal pay and compensation criteria

Law No. 14,611/2023 came into effect in July, introducing provisions on equal pay for men and women and measures to combat compensation discrimination based on gender, race, ethnicity, origin or age.

Equality is to be ensured through measures such as establishing specific reporting channels and promoting diversity and inclusion programs for training managers, leaders, and employees.

Companies with 100 or more employees are also required to submit reports on salary transparency and compensation criteria every six months.

Check it out: Equal pay: find out what has changed with the new act

5. Ethnic and racial data in labor records and documents

Since April, employers have been required to include ethnic and racial data in the labor records and documents of their workers, which must now contain a field for employees to self-identify their ethnic and racial background.

Documents such as hiringAdmission and termination records and workplace accident forms are just a few examples where this information is now required.

Further reading: Employers must supply racial and ethnic data of workers in labor registers and documents

6. Preventing and combating workplace harassment and assault

Employers with an Internal Accident and Harassment Prevention Commission (CIPAA) must comply with a number of obligations. Since March 2023, when Ordinance No. 4,219/2022 came into force, these companies have been required to put measures in place to prevent and combat sexual harassment and other forms of violence in the workplace.

Measures include creating codes of conduct for employees, providing training on the topic, establishing an anonymous reporting channel and imposing sanctions for acts of sexual harassment and assault.

Further reading: Companies with Internal Health and Safety Commissions must implement measures to prevent and curb sexual harassment

7. eSocial OSH requirements

Since January 2023, employers who fail to submit Occupational Health and Safety (OHS) data to the eSocial are subject to fines and penalties.

These OSH events are used to fulfill requirements related to issuing Workplace Accident Reports (CAT), preparing and updating the Social Security Occupational Profile (PPP), monitoring workers’ health, and providing information on employees’ exposure to harmful agents for special retirement purposes.

Read more: eSocial: OSH and special retirement data require attention from employers

8. Portability of meal vouchers

Published in August, Decree No. 11,678/2023 addresses the portability of meal and food vouchers related to the Workers' Food Program (PAT). The new model is expected to increase competition in the sector, granting workers more freedom to choose the company that manages this benefit.

The decree has also introduced a new obligation: legal entities benefiting from the PAT must implement programs aimed at promoting and monitoring their employees’ health and improving food and nutrition security.

9. Accident Prevention Factor

The Accident Prevention Factor (FAP) is a multiplier applied to the payroll to cover benefits resulting from workplace accidents and special retirement provisions.

The FAP index impacts the amount of social security contributions paid by companies, so it is important to check the value assigned by the government, which will be disclosed on September 30. Those who disagree with the assigned factor can appeal it within the legal timeframe. In other words, employers should monitor the assigned factor so they can raise objections if necessary.

Additionally, the system for consulting and appealing has been modernized, with access now made exclusively through the Gov.br portal and no longer by means of passwords registered with the Federal Revenue. As a result, in order to authorize a third party to manage their information, companies must grant them access by issuing an electronic power of attorney.

10. Union support dues

In a recent decision, the Supreme Federal Court (STF) held that it is constitutional to charge union dues to all employees of a given job category, even if they are not unionized. As a result, these dues can now be established through collective bargaining or labor agreements, provided that the worker's right to opt out is ensured.

If an employee does not opt out of the charge, the company is legally required to deduct the corresponding union dues from their payroll.

Companies should closely follow collective bargaining and agreements to inform their employees about the possibility of opting out and of eventual mandatory deductions from their payrolls. Companies should also refer to their legal counsel to seek advice on the potential impacts of this court decision.

11. Health insurance information

A significant upcoming operational change pertains to the reporting of payment made to private healthcare plans in the form of employer-sponsored group health insurance, which is currently done through the DIRF.

With this statement set to be discontinued in 2024, it is necessary to remain attentive to the new method of providing information about health plans, which is yet to be defined by the Brazilian Federal Revenue Service.

12. Restriction on tax deductions reported on DCTFWeb

Starting from the September 2023 reporting month, child benefits, maternity allowances, and tax withholdings provided for in Law No. 9,711/1998 can no longer be deducted from the Withholding Income Tax (IRRF) reported in the Statement of Federal Tax-Related Liabilities and Credits (DCTFWeb).

To request reimbursement or offsetting of these credits, a procedure will need to be carried out using the PER/DCOMP Web.

Further reading: Federal Revenue Service limits Withholding Income Tax deductions reported on DCTFWeb

Advising services for labor and social security compliance

Given the multitude of obligations and frequent regulatory changes, relying on specialized support is a secure approach to maintaining your company's compliance.

At DPC, our experts diligently track changes in the regulations and offer client support to ensure the implementation of best practices in labor and social security. You can rely on our support by reaching out to us at dpc@dpc.com.br.