Labor & Employment | Edition 03

01.07.2025

Key Highlights

NATIONAL CONGRESS

Gender Equity

The Federal Senate has approved Bill No. 1,246/2021, which mandates that 30% of the seats on the Boards of Directors of state-owned enterprises be allocated to women. Within this quota, a portion must also be reserved for Black women and women with disabilities. The bill, approved with only a minor editorial revision, now proceeds to the President for enactment.

People with Disabilities (1)

The House of Representatives’ Committee for the Rights of Persons with Disabilities has approved Bill No. 3,290/2023, which grants individuals with disabilities the option of a reduced work schedule without salary reduction, provided that the need is substantiated through a technical assessment. The bill is proceeding under a conclusive procedure and will be analyzed by the Committees on Labor and on Constitution, Justice and Citizenship before being forwarded to the Senate.

People with Disabilities (2)

The same committee also approved Bill No. 1,464/2023, which authorizes workers with disabilities to use their FGTS (Severance Indemnity Fund) funds for the purchase of vehicles. The bill will still be reviewed, under a conclusive procedure, by the Committees on Labor, Finance and Taxation, and Constitution, Justice and Citizenship.

Regulated Professions

The House Committee on Finance and Taxation approved Bill No. 1,024/2020, which updates the regulations governing professions linked to the CONFEA/CREA system (including engineering, agronomy, and geosciences). A key provision eliminates the requirement for hiring a Brazilian assistant to accompany foreign professionals hired by companies, thereby reducing bureaucracy and facilitating the hiring of engineers for public-interest projects. The bill will still be conclusively examined by the Committee on Constitution, Justice and Citizenship (CCJ).

Leave of Absence

The House Committee on Labor approved Bill No. 3,170/2023, which extends bereavement leave from two to five consecutive days in cases where a family member’s death involves organ or tissue donation. The proposal will be conclusively reviewed by the Committee on Constitution, Justice and Citizenship.

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ADMINISTRATIVE AND JUDICIAL PRECEDENTS

Work-related Slavery

The Federal Supreme Court (STF) partially upheld ADI No. 5465, filed by the National Confederation of Commerce (CNC), and confirmed the constitutionality of São Paulo State Law No. 14,946/2013, which imposes a 10-year restriction on the commercial activities of companies and partners involved in labor practices analogous to slavery, provided such conduct is recognized exclusively by the competent federal authority. The ruling also reaffirmed the validity of Articles 1, 2, and 4, which require evidence through an administrative proceeding observing due process and the right to a full defense:

a) that the company’s partner or legal representative knew or should have suspected that slave-like labor conditions were present in the supply chain of the acquired goods; and

b) that the sanctioned partner, being aware or reasonably suspicious of the situation, contributed—by act or omission—to the acquisition of such goods.

PAYROLL CHARGES | COMMUTING ALLOWANCE

The Federal Revenue Service (RFB) issued Interpretive Ruling No. 7,004/2025 confirming that commuting allowance payments made in cash are not subject to social security contributions.

a) However, this exemption only applies to amounts strictly necessary to cover commuting expenses between the employee’s residence and workplace, using public transportation.

b) Moreover, employers are only allowed to bear the portion exceeding six percent of the employee’s base salary. If the employer fails to deduct this percentage or deducts less, the difference will be deemed indirect salary and subject to social security contributions.

SOCIAL SECURITY WITHHOLDING

a) Cash-in-Transit Services. Interpretive Ruling No. 91/2025 from the RFB established that cash-in-transit services, when classified as “security services,” are subject to social security withholding by the contracting company if provided via labor supply or outsourcing arrangements.

b) Passenger Transport Services. RFB Interpretive Ruling No. 106/2025 clarified that passenger transport services, when also classified as “security services,” fall under the same withholding rules, except for companies that opt for the “Simples Nacional” tax regime (Annex IV of Supplementary Law No. 123/2006).

c) Agribusiness. Interpretive Ruling No. 102/2025 affirmed that agricultural aerial services such as sowing, fertilization, and pesticide or desiccant spraying are subject to social security withholding when provided through labor supply or outsourcing.

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