In wide ranging remarks about the general economic conditions of the important South American economy, freshly elected Brazilian President-elect Luiz Inácio Lula da Silva took aim at the country’s 2017 labor reforms noting the need to “discuss the capital-labor relationship in the 21st Century.”
Brazil’s 2017 Labor Reforms have been a target of President-elect Lula da Silva who pledged to get rid of the reforms during his campaign. Mr. Lula da Silva, in remarks given late last week again referred to the need to roll back the 2017 regulations, noting “[s]ome rights were removed from workers.”
As a general summary, the 2017 Labor reforms made several significant changes to Brazil’s labor codes, including:
Made Brazil’s union tax contribution optional where it had been mandatory.
Allowed the 30-day annual vacation time to be divided into three periods so long as one is at least 15 days long
Any home office work equipment must be formalized in a contract and remote workers get paid based on tasks accomplished.
Working hours can be at most 12 hours per day – up from 8 – with 36 hours of rest and a max working limit of 44 hours
Non-work related activities, such as breaks, lunch, etc. do not contribute to the hours at work.
Outlook: Despite facing a very politically polarized company, Mr. Lula da Silva will clearly stick to his progressive instincts and attempt to make good on his promises to reform the country’s labor codes. HR Policy Global will stay on top of the issue and track any potential changes.