Ministry of Labor publishes an order stating that labor reform has "general, comprehensive and immediate validity" for all contracts

Official Gazette of June-15-2018 and on its website, the Ministry of Labor (MTb) published the Order dated June-14-2018 in which it deals with the scope of the Labor Reform (Law no. 13467/2017).

The aforementioned resolution approves Opinion No. 00248/2018/CONJUR-MTB/CGU/AGU, issued by the Legal Counsel to MTb, which after several considerations indicates that, even with the loss of effectiveness of provisional Measure No. 808/2017 (which explicitly stated, for the sake of clarity, the immediate applicability of Law No. 13467/1207 to all existing employment contracts), the fact that this law is generally applicable, comprehensive and immediate to all the employment contracts governed by the CLT, including, therefore, those initiated prior to the entry into force of this law and which continued in force after November-11-2017.

Consequences of dispatch

The opinion has a binding effect in the scope of the MTb, whose fiscal should follow its orientation.

However, on the same day of its publication, the National Association of Labor Judiciary Magistrates (Associação Nacional dos Magistrados da Justiça do Trabalho – Anamatra) released a note in which it reinforces the binding character only for the Federal Public Administration, affirming that it is up to the jurisprudence of the courts to consolidate the majority understanding of Labor Magistrates on the new labor law.

In addition, there is a commission in the Higher Labor Court (TST) discussing the scope of Law 13467/2017, without predicting when the result will be disclosed.

Important: Read here the whole order published by MTb regarding the opinion.