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Provisional Measure on labor rules during the pandemic loses validity: do you know what has changed?

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Published in March, Provisional Measure 927, the first measure that provided for labor rules during the pandemic, lost its validity on July 19, 2020, after being withdrawn from the agenda by the Senate. The measure eased labor rules on remote work, overtime compensation, anticipation of vacations, among other topics.

With the expiration of the Provisional Measure, the legal labor relations established by it can no longer be applied. Companies must reverse to comply with the terms provided for in the current labor legislation (CLT).

See below some of the main changes that can affect you and your company:

  • Remote work: the MP had made the move from working in situ to remote working more flexible. Under the MP it was enough to communicate the employee 48 hours in advance for the transition to be made without further problems. With the expiry of the MP, the provisions of the CLT (Consolidation of Labor Laws) regime are again sovereign, that is, the company must have the employee’s agreement, through a contractual amendment, and at made arrangements at least 15 days in advance for the transition.
  • Remote training: remote work can no longer be applied to interns and apprentices.
  • Anticipation of vacations and holidays: the MP allowed to anticipate vacations that were expiring and holidays so that time could be used, theoretically, with less demands. With the end of the MP, it is no longer possible to anticipate holidays or vacations.
  • Shutdown: obligatory vacations due to companies’ shutdown must be communicated to the employee at least 15 days in advance, for a minimum period of 10 days and notifying the labor union and the Ministry of Economy.
  • Longer term for compensatory time off: the MP determined a period of up to 18 months for compensatory time off. With the expiration of the MP, these hours will be governed again as in the CLT, which authorizes a maximum compensation period of up to 6 months.
  • Health and safety at work: admission, periodic and dismissal medical examinations are again required within the regulated deadlines, without exemption for their performance.
  • Payment of the Guarantee Fund for Length of Service: it is now impossible to extend or pay the FGTS in installments.

It is important to note that the adoption of labor measures based on Provisional Measure 927 was prohibited as of July 20, 2020, but this does not automatically invalidate the acts carried out during its term.