PROVISIONAL EXECUTIVE ACT (MP) Nº936/2020
EMERGENCY PROGRAM FOR THE MAINTENANCE OF INCOME AND EMPLOYMENT

PROVISIONAL EXECUTIVE ACT (MP) Nº936/2020
EMERGENCY PROGRAM FOR THE MAINTENANCE OF INCOME AND EMPLOYMENT

PROVISIONAL EXECUTIVE ACT Nº936/2020

Provisional Executive Act Nº936, of April 1, 2020, implemented the Emergency Program for the Maintenance of Income and Employment and sets for the terms of the supplementary labor measures to fight the state of emergency arising out of the Coronavirus (Covid-19) outbreak.

Purposes:
  • To preserve income and employment
  • To ensure the continuity of labor and business activities
  • To reduce social impact arising out of the state of emergency and state of public health emergency

 

Emergency Aid Program:
  • Payment of Emergency Aid
  • Proportional reduction of work hours and salaries
  • Temporary suspension of employment contracts

 

PAYMENT OF EMERGENCY AID

Payment:

  • Federal Government funds will be used to pay for the aid, based on the monthly amount of unemployment insurance to which the employee is entitled.
  • Monthly payment due as from the initial date of reduced work hours and salary, or of the temporary suspension of the employment contract.
  • Employers must inform the Ministry of Finance within 10 days from execution of the agreement for the first installment of the aid to be paid to the employee, in 30 days.
  • If employers fail to send notice within 10 days, employers are liable for the payment of the full prior compensation, plus all charges.

Beneficiaries:

  • All employees whose work hours and salaries have been reduced, or whose employment contract have been temporarily suspended.

The aid is not available for:

  • Employees in public positions or jobs, government agents/civil servants in general appointment/dismissal and temporary management or direction positions or holders of elective office.
  • Employees who receive recurring benefits under the General Social Security Regime.
  • People who have filed for unemployment insurance.
  • People who are paid professional qualification grant.

 

REDUCED WORK HOURS AND SALARY

Maximum Duration

  • 90 days during the state of emergency

Hourly Wage

  •  Hourly wage/hourly rate must be maintained

Temporary Employment Guarantee

  • During the agreed period of reduced work hours and after the reestablishment of work hours, for the same period as the reduction

25% Reduction

  • Negotiation under individual contract (irrespective of salary) or under collective-bargaining agreement.
  • Amount of the Aid: 25% of the unemployment insurance to which the employee is entitled
  • Termination Without Cause during the guaranteed employment period: Employer must pay 50% of the salary to which the employee would be entitled during the temporary guaranteed employment period.

50% Reduction

  • Negotiable under individual contract only in the following events:
  • Employees whose monthly salary is of up to BRL 3,135.00 and
  • Employees whose monthly salary is equal to or above BRL 12,202.12 and who hold higher education degrees
  • Amount of the Aid: 50% of the unemployment insurance to which the employee is entitled
  • Termination Without Cause during the guaranteed employment period: Employer must pay 75% of the salary to which the employee would be entitled during the temporary guaranteed employment period.

70% Reduction

  • Negotiable under individual contract only in the following events:
  • Employees whose monthly salary is of up to BRL 3,135.00 and
  • Employees whose monthly salary is equal to or above BRL 12,202.12 and who hold higher education degrees
  • Amount of the Aid: 70% of the unemployment insurance to which the employee is entitled
  • Termination Without Cause during the guaranteed employment period: Employer must pay 100% of the salary to which the employee would be entitled during the temporary guaranteed employment period.

Collective-Bargaining Agreements

  • May determine different reduction percentages (other than 25%, 50% and 70%).
  • Aid to be paid according to the following rules:

– Reduction of up to 25%: No right to Emergency Aid.

– Reduction above 25% and under 50%: Emergency Aid of 25% of the unemployment insurance to which the employee is entitled

– Reduction above 50% and under 70%: Emergency Aid of 50% of the unemployment insurance to which the employee is entitled

– Reduction exceeding 70%: Emergency Aid of 70% of the unemployment insurance to which the employee is entitled

Notice to be served by Companies

  • Employees: Send contract/agreement at least two consecutive days in advance.
  • Employees’ Union: within 10 consecutive days from execution of the contract/agreement.
  •  Ministry of Finance: within 10 consecutive days from execution of the contract/agreement.

TEMPORARY SUSPENSION OF THE EMPLOYMENT CONTRACT

Maximum Duration

  • 60 days during the state of emergency, divisible into two thirty-day periods.

Prohibition

  • If, during the temporary suspension period, the employee maintains any work activities, even if in part, under the telework or remote work regime, then the temporary suspension of the employment contract will no longer apply

Sanctions

  • Immediate payment of compensation and social charges applicable during the entire period
  • Fines set forth in the labor laws
  • Sanctions set forth in the Collective Labor or Collective-Bargaining Agreement

Temporary Employment Guarantee

  • During the agreed temporary suspension period and after the work hours are reestablished, for the same period agreed to under the temporary suspension

Benefits

  • All benefits payable (by employer) during the temporary suspension period

Payments to the General Social Security Regime (RGPS)

  • Employees may contribute to the General Social Security Regime as optional/voluntary insured

Suspension of Employment Contract by Companies with Annual Gross Revenue of up to BRL 4.8 M in 2019

  • Negotiable under individual contract only in the following events:
  • Employees whose monthly salary is of up to BRL 3,135.00 and
  • Employees whose monthly salary is equal to or above BRL 12,202.12 and who hold higher education degrees
  • Amount of the Aid: 100% of the unemployment insurance to which the employee is entitled
  • Monthly Compensation Aid paid by the employer: Not mandatory
  • Termination Without Cause during the guaranteed employment period: Employer must pay 100% of the salary to which the employee would be entitled during the temporary guaranteed employment period.

Suspension of Employment Contract by Companies with Annual Gross Revenue above BRL 4.8 M in 2019

  • Negotiable under individual contract only in the following events:
  • Employees whose monthly salary is of up to BRL 3,135.00 and
  • Employees whose monthly salary is equal to or above BRL 12,202.12 and who hold higher education degrees
  • Amount of the Aid: 70% of the unemployment insurance to which the employee is entitled
  • Monthly Compensation Aid paid by the employer: 30% of the employee’s salary (compensatory nature, not included in the Income Tax, Social Security Contribution and FGTS tax bases)
  • Termination Without Cause during the guaranteed employment period: Employer must pay 100% of the salary to which the employee would be entitled during the temporary guaranteed employment period.

Notice to be served by Companies

  • Employees: Send contract/agreement at least two consecutive days in advance.
  • Employees’ Union: within 10 consecutive days from execution of the contract/agreement.
  •  Ministry of Finance: within 10 consecutive days from execution of the contract/agreement.

 

Assessor-Bordin Consultores Empresariais

 

2020-04-08T13:57:10+00:00 Insider|