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Brazil: New Law Reforms Labor Relations

(July 20, 2017) On July 13, 2017, Brazil enacted Law No. 13.467 (Lei No. 13.467, de 13 de Julho de 2017, PLANALTO), which amended the Consolidation of Labor Laws (Consolidação das Leis do Trabalho, Decreto-Lei No. 5.452, de 1 de Maio de 1943, PLANALTO) and other laws for the purpose of implementing a labor reform bill approved by the National Congress.  (Laís Lis, Temer Sanciona Texto da Reforma Trabalhista em Cerimônia no Planalto, G1 (July 13, 2017).)

According to the labor reform, negotiations between companies and workers will prevail over the law in such matters as the use of annual leave (which previously had to be used all at once and now may be broken up), flexible work schedules, profit sharing, lunch breaks, career planning, and the creation of a bank of hours to be used by the employee within six months.  Furthermore, a union contribution is no longer mandatory and telework becomes a new option.  However, certain standards, such as social security, minimum wage, unemployment insurance, and maternity leave, cannot be negotiated. (Id.)  The new rules will come into effect in four months.  (Id.)