Publicado em 25/08/2020

Extension of deadlines for suspension of employment agreements and reduction of wages and working hours

The Decree No. 10,470 was issued on August 24, 2020, extending the maximum terms for agreements setting forth proportional reduction for working hours and wages and temporary suspension of employment, as well as for extending the payment of the Emergency Benefits set forth by Law No. 14,020/2020, provided that such is within the Federal Government budget. 

According to the such Decree, the maximum terms for both extraordinary measures were extended by 60 (sixty) days, totaling a maximum of 180 (one hundred and eighty) days. 

Thus, as of today, employers will be able to enter into agreements with their employees setting forth a new suspension of their employment agreements and/or temporary reduction of their wages proportionally to the reduction of their working hours.

Finally, since the extension of the Emergency Benefit payments to employees impacted by the above exceptional measures is subject to the Government’s budget availability, we will continue to follow up the Economy Ministry information in this regard.