Publicado em 14/07/2020

Issuing of Decree 10.422 / 2020, extending the maximum terms of labor measures for the Preservation of Employment and Income

As anticipated since the conversion of Executive Order 936, into Law No. 14,020/2020, the Decree No. 10,422/2020 was enacted today extending the maximum deadlines for salaries and working hours reductions and suspension employment agreements.

Both the temporary suspensions of employment and reduction of salaries and working hours may now be adopted for a maximum combined term of 120 (one hundred and twenty) days. Therefore, both the individual term for each measure and the sum of terms related to both measures are limited to 120 days.

Should suspensions and/or reduction of salaries and working hours being implemented since April 1st, 2020, they shall be consider within the maximum 120-day term authorized by the Decree.

In addition, the Decree also provides that the suspension of the employment agreements may be fractioned, in periods of 10 (ten) or more days, increasing the flexibility to use such measures for the additional term authorized by the Decree.

Finally, the payment of the Emergency Benefit by the Federal Government for an extended period will be conditioned to Government budget availability.

We will continue to follow up this matter and will provide an update in case of any developments.