Labor News: Brazilian House of Representatives approves Mini Labor Reform

On 10/08/2021, the Chamber of Deputies approved a mini labor reform which prioritizes the flexibilization of worker rights and creates new types of employment contracts.

The bill can still undergo changes with significant votes from the Chamber and, later, will be sent to the Federal Senate.

The main approved changes are:

· The creation of a program incentive for first jobs, with a salary cap of R$ 2,200.00 and a reduction in the amount paid monthly as FGTS;

· Reduction to 20% of the percentage of overtime remuneration for bank employees, journalists and telemarketing operators;

· Prohibiting the cancelation of extrajudicial clauses in agreements signed between a company and employee;

If the new measures are approved, companies will be allowed to use the new formats for contracting and making agreements, within their labor planning, allowing for a reduction in labor/social security costs and optimizing employment relations.

Written by Daniel Rangel, Head Of Labor Law at Drummond Advisors

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