Labor laws relaxed to preserve jobs during public calamity

Law No 14,437/2022 was published on August 16. Resulting from the signing of the Provisional Presidential Act No 1,109 into law, the statue relaxed labor laws in order to help preserve jobs in times of public calamity.

The law allows the reduction of employees’ working hours and salaries, even offering companies the possibility to temporarily lay off their workers, who shall be paid an Emergency Benefit for the Preservation of Employment and Income (BEm) by the Federal Government.

Other measures intended to help maintain jobs include the simplification of remote work, the implementation of compensatory time arrangements and the suspension of payments related to the Severance Indemnity Fund (FGTS).

Since the act was signed into law, all the above provisions are in force indefinitely.