This past Monday (6), President Jair Bolsonaro sanctioned Provisional Measure 936, which was converted into Law 14.020 / 2020, which allows the reduction of working hours and wages for workers.
The sanctioned Law presented several presidential vetoes that mostly fell on the exemption from the payroll tax burden, but mostly ratified the terms of MP 936.
The aforementioned MP 936 originally provided that the employment contract could be suspended for up to 60 days, split up to a maximum of two periods of 30 days. The salary reduction could not exceed 90 days in total.
Lawyer Sabrina Rui explains, “The Chamber approved the permission for these deadlines to be extended by an act of the Executive Branch, while the state of public calamity lasts, and cannot exceed the period of December 31.”
The government, then, should allow for two more months the suspension of contracts and for another month the reduction of working hours, all according to the decree that regulates the matter that according to Congress is already ready awaiting approval.
It is worth remembering that this Emergency Benefit Program applied to employment contracts “They will subsidize the part of the employee’s salary that has been suspended or reduced, subject to the unemployment insurance limit (R $ 1,813.00)” presents Sabrina.
The reduction in wages and hours works as follows: the employer can proportionally reduce these by 25%, 50% or 70% for the term already mentioned, the rest of the payment is under the responsibility of the government. Then the boss must report to the Ministry of Economy within ten days from the date of the agreement.
And then, “If this deadline is not respected, it is the employer’s responsibility to effect the payment of the remuneration and the social charges levied on the complementary amount”, says the lawyer.
In addition, the lawyer warns that the employee who had his employment contract suspended and / or with reduced working hours will now have the provisional guarantee of employment recognized by the employer, in a period equal to that his employment contract was included in the Governmental Program.
Service: Dra. Sabrina Marcolli Rui
Lawyer in tax and real estate law
SR Advogados Associados
Rua Riachuelo, nº 102 – 20th floor – room 202, downtown – Curitiba.