With the coronavirus (COVID-19) pandemic continuing to affect the world – and employment law – this article answers FAQs for Brazilian employers. For example, can companies cancel job offers prior to the start date? And who pays for employees' time away from work due to COVID-19?
Provisional Measure 905/2019 (PM 905) was recently published in the Official Gazette, creating a new type of employment agreement specifically designed to incentivise companies to offer individuals aged between 19 and 29 their first formal job in exchange for benefits relating mainly to payroll taxation. The final decision regarding PM 905 should happen after April 2020 but, in the meantime, companies should seek legal advice while implementing the proposed changes.
The Labour Code provides for two payments which eligible employees can receive in addition to their base salary: the hazard allowance and the risk premium. Since 2015, the Superior Labour Court panels have issued conflicting decisions on whether employees can receive the hazard allowance and the risk premium simultaneously. Now, the Superior Labour Court has determined that the additional payments cannot be received simultaneously, even if employees are exposed to different adverse conditions.
In a recent decision, the Supreme Court addressed an important question relating to the day-to-day activities of companies operating in Brazil: is the outsourcing of services allowed without restriction or should it be limited to non-core business activities, as set out by Precedent 331 of the Superior Labour Court? This decision is relevant because it will affect the standards adopted by the Brazilian labour courts in relation to outsourcing.