Labor Reform: Key Points to Know

Law 13.467 of 2017, better known as the Labor Reform, was approved two years ago, but a large part of the population is unaware of the main points that alter the Consolidation of Labor Laws (CLT). In addition to the changes that are already in effect, the government announced that it will present a new reform at the beginning of December.

For labor law specialist Kássia Ferraz, it is essential for both workers and employers to be aware of the changes, which affect everyone's routine and can lead to penalties imposed by regulatory agencies. "The truth is that today's job market is very different from what it was years ago. In addition to the growth of informality, we have the emergence of new work modalities, which arose mainly with the advancement of technology," she explained.

Among the more than 100 modified points, some are essential to understand the reform, such as changes in outsourcing, the duration of the normal workday, vacation splitting, salary plans, union tax, and mutual termination. Lawyer Kássia Ferraz explained some of them in more detail:

Agreements between employer and employee upon hiring: with the new reform, what is agreed upon between the parties has the force of law. It is only necessary to observe that contracts must respect essential rights, such as minimum wage, FGTS, and vacation.

Workday: The daily workday can now be up to 12 hours, provided that 36 hours of rest are observed afterward.

Vacation: vacations can now be split into up to three periods, by agreement between the parties, as long as one of the periods has at least 14 days.

Outsourcing: the new law allows the outsourcing of core activities. Under the old rule, this was only permitted for ancillary activities, those that do not constitute the central objective of the company.

Mutual termination: employer and employee can mutually agree to terminate the contract. However, the FGTS penalty is reduced from 40% to 20%, and the notice period is now 15 days. The worker can withdraw 80% of the amount in the fund account but loses the right to unemployment insurance.

Union tax: the contribution becomes optional, not mandatory.

Break interval: worker and employer can negotiate shorter breaks during lunch, allowing for deductions to arrive later or leave earlier.

Kássia Ferraz – Legal Advisory and Consulting
@advogada_drakassiaferraz
www.kassiaferraz.com
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