Brazil: New labor law measures

Brazil: New labor law measures

Law 13467/2017, published in the official gazette on 14 July 2017, reflects certain "labor reform" measures. Among the amendments are provisions concerning:

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  • Revised collective bargaining standards (companies and labor unions can negotiate certain work conditions, even if what is agreed upon does not comport with current law)
  • Rules for the review of agreements and conventions by the “labor court”
  • Rules for employee holidays and vacation time
  • Employee commuting transportation (from resident to work) not to be part of the measure for computing the working day
  • Rules for determining the length of the working day (in certain situations, a 12-hour work day is allowed provided that it is followed by a 36-hour rest period and limited to the 44-hour work week as established by the Constitution)
  • Rules for telecommuting or teleworking 
  • Wage equalization measures
  • Rules for employee dismissals 
  • Measures about union dues or contributions (mandatory labor union contributions are eliminated)
  • Employee medical care

The labor reforms will be effective in November 2017, will apply to existing or new labor contracts, and may affect company labor costs.

 

Read a July 2017 report (Portuguese) prepared by the KPMG member firm in Brazil

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