Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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New Ordinances Streamline Employer Reporting Requirements

New Legislation Enacted

Author: Renata Neeser, Shareholder - Littler United States

Brazil continues to streamline employer submissions of required employment data by integrating more workplace reporting requirements into the eSocial system. Coming on the heels of the Economic Freedom Act (Law 13.874/2019), which contains several provisions to consolidate and digitize employment information, two recent ordinances provide employers an easier process to submit employment data to the government. One ordinance applies to reporting requirements for the RAIS and CAGED systems, and another addresses digitizing the Employee Registration Book. Most of the provisions within these ordinances take effect on January 1, 2020.

Provisional Measure # 905 – A New Mini Labor Reform

New Legislation Enacted

Authors: Renata Neeser, Shareholder - Littler United States and Marilia Minicucci, Partner - Chiode Minicucci Advogados in São Paulo, Brazil

Provisional Measure # 905 (PM), published on November 12, 2019, establishes a new type of labor relationship in Brazil. The PM aims to reduce the alarmingly high unemployment rate affecting younger workers in the country, and to promote hiring by giving employers an alternative means to do so at lower costs. Specifically, the PM creates the Green and Yellow (GY) Employment Contract, a new employment contract model, which: Targets workers ages 18 to 29 who are seeking their first employment opportunity; Is limited to a two-year period; Has simpler and more flexible rules; And provides for less-encumbering employment taxation. The maximum salary to be paid to the GY employees is equivalent to one and a half times the Brazilian federal minimum wage which, in 2020, is BRL1,039.00 (approximately USD$255.00) per month; one and half times that amount equals BRL 1,558.50 (USD$383.00). Thus, the new employment contract model is directed at less-experienced workers, who are most intensely affected by the unemployment rates. The PM is temporary and may expire as early as February 20, 2020, unless extended by Congress.

New Timetable for eSocial Submissions

New Regulation or Official Guidance

Author: Renata Neeser, Shareholder - Littler United States

The implementation of the Brazilian employment reporting system eSocial continues to be modified. The recent Ordinance 1.419 has substantially delayed the obligation for the public sector (groups 4, 5 and 6), but has also brought some respite to the private sector. Ordinance 1.419 provides new timetables for eSocial submissions, outlining those by categories for large, micro and small businesses.