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09/09/2022HIGHLIGHTS
Provisional Decree that regulated remote work and meal vouchers signed into law
Law defines rules for remote work and introduces changes for employers and companies that provide food and meal benefits
On September 5, the Federal Gazette saw the publication of Law No 14,442/2022, which resulted from the sanction of Provisional Presidential Decree No 1,108/2022 by the Legislative branch.
The signing of the decree into law has been eagerly awaited, since the act regulates remote work, filling legislative gaps that hindered companies from implementing the practice. In addition, the act introduced changes to meal vouchers, curbing their use for purposes unrelated to the purchase of food for workers.
Regulation of remote work
The statute outlined the concept of remote work and implemented the hybrid work schedule, filling gaps in the Labor Laws surrounding the subject. Until then, work performed outside office environments had not been dealt with in depth by the legislation. The law also regulated the management of working hours for remote workers and expanded the arrangement to include interns and trainees.
Check out the main developments below:
• Definition of remote work: Article 75-B of the Consolidation of Labor Laws of Brazil (“Consolidação das Leis Trabalhistas” – CLT) was amended, defining remote work as the “the rendering of services outside the employer's premises, whether prevalent or not, with the use of information and communication technologies, which, by themselves, do not constitute external work”.
• Hybrid work schedule: the law states that in-office work may supersede telecommuting and vice-versa, and remote work arrangements will not be ruled out when work is performed mostly in-office.
• Piece work: employees paid for actions performed or tasks finished will not be subject to the control of working hours by employers, nor will they be entitled to overtime rates.
• Time management for remote workers: employees working under remote or hybrid work schedules (provided that they do not fall under the piece-rate pay system) must record their working time and are entitled to overtime rates whenever they exceed their standard hours. This is a major development introduced by the statute, since, in the past, remote workers were not subject to timekeeping and overtime pay.
• Use of company equipment during off-hours: as a general rule, the law established that the use of telecommuting equipment and infrastructure outside the standard working hours does not count as time spent at the employer's disposal, nor as standby or on-call duty.
• Prevalence of Individual employment agreements: individual agreements may stipulate the working hours and means of communication between employee and employer, as long as the mandatory work breaks and rest periods have been provided for in the contract.
• Inclusion of interns and trainees: interns and trainees may now be hired under the remote work arrangement.
• Remote work performed abroad: employees hired in Brazil working remotely from outside the country will be subject to Brazilian laws.
Restrictions on meal vouchers
The statute has also imposed restrictions on meal vouchers, which can now only be used in restaurants or to purchase food products at retail shops.
The ban aims to prevent the benefit from being used for purposes other than its original intent, as meal vouchers – which are given special tax treatment for companies receiving taxable income – have long been misused to pay for services other than the purchase of food, such as those related to electronics and even fuel.
Companies are also forbidden from receiving discounts upon hiring meal voucher suppliers, as those that offer this benefit to their workers are already granted tax exemption.
Employers and companies that misuse or divert meal vouchers from their purpose warrant a fine ranging from BRL 5.000,00 to BRL 50.000,00, which may be doubled if the offense is repeated.
Labor Management Compliance
DPC's labor and social security department provides its clients with consulting and operational support, keeping them abreast of the best practices for workforce management to ensure compliance with the laws in force. You can rely on this support: dpc@dpc.com.br.
How DPC may help your company?
Domingues e Pinho Contadores has specialized team ready to assist your company.
Contact us by the e-mail dpc@dpc.com.br
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Provisional Decree that regulated remote work and meal vouchers signed into law
Statute brings remote work in line with the legislation and introduces changes for employers and companies that provide food and meal benefits
On September 5, the Federal Gazette saw the publication of Law No 14,442/2022, which resulted from the sanction of Provisional Presidential Decree No 1,108/2022 by the Legislative branch.
The signing of the decree into law has been eagerly awaited, since the act regulates remote work, filling legislative gaps that hindered companies from implementing the practice. In addition, the act introduced changes to meal vouchers, curbing their use for purposes unrelated to the purchase of food for workers.
Regulation of remote work
The statute outlined the concept of remote work and implemented the hybrid work schedule, filling gaps in the Labor Laws surrounding the subject. Until then, work performed outside office environments had not been dealt with in depth by the legislation. The law also regulated the management of working hours for remote workers and expanded the arrangement to include interns and trainees.
Check out the main developments below:
• Definition of remote work: Article 75-B of the Consolidation of Labor Laws of Brazil (“Consolidação das Leis Trabalhistas” – CLT) was amended, defining remote work as the “the rendering of services outside the employer’s premises, whether prevalent or not, with the use of information and communication technologies, which, by themselves, do not constitute external work”.
• Hybrid work schedule: the law states that in-office work may supersede telecommuting and vice-versa, and remote work arrangements will not be ruled out when work is performed mostly in-office.
• Piece work: employees paid for actions performed or tasks finished will not be subject to the control of working hours by employers, nor will they be entitled to overtime rates.
• Time management for remote workers: employees working under remote or hybrid work schedules (provided that they do not fall under the piece-rate pay system) must record their working time and are entitled to overtime rates whenever they exceed their standard hours. This is a major development introduced by the statute, since, in the past, remote workers were not subject to timekeeping and overtime pay.
• Use of company equipment during off-hours: as a general rule, the law established that the use of telecommuting equipment and infrastructure outside the standard working hours does not count as time spent at the employer’s disposal, nor as standby or on-call duty.
• Prevalence of Individual employment agreements: individual agreements may stipulate the working hours and means of communication between employee and employer, as long as the mandatory work breaks and rest periods have been provided for in the contract.
• Inclusion of interns and trainees: interns and trainees may now be hired under the remote work arrangement.
• Remote work performed abroad: employees hired in Brazil working remotely from outside the country will be subject to Brazilian laws.
Restrictions on meal vouchers
The statute has also imposed restrictions on meal vouchers, which can now only be used in restaurants or to purchase food products at retail shops.
The ban aims to prevent the benefit from being used for purposes other than its original intent, as meal vouchers – which are given special tax treatment for companies receiving taxable income – have long been misused to pay for services other than the purchase of food, such as those related to electronics and even fuel.
Companies are also forbidden from receiving discounts upon hiring meal voucher suppliers, as those that offer this benefit to their workers are already granted tax exemption.
Employers and companies that misuse or divert meal vouchers from their purpose warrant a fine ranging from BRL 5.000,00 to BRL 50.000,00, which may be doubled if the offense is repeated.
Labor Management Compliance
DPC’s labor and social security department provides its clients with consulting and operational support, keeping them abreast of the best practices for workforce management to ensure compliance with the laws in force. You can rely on this support: dpc@dpc.com.br.
