Publicado em 14/10/2020

New extension of deadlines for suspension of employment agreements and reduction of wages and working hours

The Decree No. 10,517 was issued on today (October 14, 2020), extending again 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 such Decree, the maximum terms for both extraordinary measures were extended by further 60 (sixty) days, totaling a maximum of 240 (two hundred and forty) 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.

Nonetheless, the extraordinary measures already applied by employers until the issuing of the Decree in reference will be computed for the calculation of the total term, resulting from the above addition.

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.

We will continue to follow up this matter and its developments.