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Extended Effectiveness of Provisional Measure 808/2017 that Amended the Labor Reform

On February, 20, Act No. 5/2018 of the Chairman of the National Congress extended, for another 60 days, the effectiveness of Provisional Measure (PM) 808 of November 14, 2017, which amended the Labor Reform introduced by Law 13467/2017.

According to the Federal Constitution, Provisional Measures must be converted into Law by the National Congress within 60 days from their issuance date, extendable for the same period; otherwise, they will no longer be effective.

Among the subjects addressed by PM 808/2017, the main changes refer to the readjustment of the amount used as calculation basis for indemnification due to moral damages (threshold is based on the highest amount of the highest benefit provided for by the Social Security´s Overall System rather than the employees´ compensation, except for cases involving death, which are not capped); the provision that pregnant women should be removed from unhealthy locations and activities; changes of criteria to define a salary or a indemnifying status of bonuses; allowances and awards; and the changes of criteria to hire independent professionals (exclusion of the exclusivity clause and permission to render services to other companies that perform the hiring company’s same business).

Further, Provisional Measure 808 brought new criteria for adoption of the 12×36 work hours shifts (prohibition against establishing it by means of individual agreements, except for the health industry) and of the Zero Hour Contract (fines due to employee´s absence do not apply; possibility of splitting vacation periods in up to three blocks; and termination of employment agreement in case the employee is not called to work by the employer within one year; payment of special severance in case of termination without a cause and prohibition against hiring, within 18 months, a former employee who was under indefiniteterm employment contract).

The National Congress, therefore, must set up a Mixed Committee to assess and vote PM 808/2017, converting it into Law until the end of April; otherwise, employers must be guided by the original changes brought by Law 13467/2017.

This newsletter contains information and general comments on legal matters that may interest our clients and friends. It does not represent the legal opinion of our firm on the subjects addressed herein. In specific cases, readers should rely on proper legal assistance before adopting any concrete action relating to the matters addressed herein.

For additional information on the matter, please contact:
Thiago R. Barbosa –
André B. Laza