Approval of wording on the Executive Order 1,108 – Alterations of the telework regime and meal vouchers rules. Referral of the matter for presidential sanction and conversion into law.
On August 3, 2022, the Executive Order No. 1,108/21 was approved by the National Congress with amendments proposed by the Brazilian Lower House. Such Executive Order further regulates the telework regime and granting of meal/food allowances or vouchers to employees.
Issued in March 2022, such Executive Order would remain in force until August 7, 2022, unless reviewed and approved by the Brazilian Congress until such date.
The final text will be referred for presidential sanction and should be enacted in the coming days.
According to the official text, the main alterations brought to the legislation are:
– The exception of working hours control will only be applicable to teleworking employees who provide service by production or task;
– Employees attendance at the employer’s premises, even if on a regular basis, do not exclude the recognition of a teleworking regime;
– Prohibition of comparison of the teleworking regime with the regime of telemarketing or teleservice operators;
– Permission to apply the telework regime for apprentices and interns;
– Brazilian employment legislation will be applicable for employees hired in Brazil under a telework regime who decide to work abroad, with exception of the Brazilian expat legislation (Law No. 7.064/82);
– Employers will not be liable for employees expenses arising from the return to presential work (including moving expenses) if the employee chooses to carry out his/her activities outside the employer’s territorial base;
– Mandatory prioritization of the allocation of employees with disabilities and employees with children or responsible for children under judicial custody up to four years of age for positions in telework regime.
– Mandatory use of amounts paid as meal vouchers for the payment of meals or food articles in commercial establishments;
– Legal entities hired to provide the meal vouchers cannot grant the contracting party discounts on the contracted amount, transfer or payment terms that detract from the pre-paid nature of the meal voucher and other direct or indirect benefits of any nature, not directly linked to the promotion of workers’ health and food safety;
– Possibility of withdrawing the unused meal vouchers balance, after a 60-day period of such credit being deposited.
These changes regarding the telework regime reinforces the incentives for companies to implement them, especially with respect the employees’ possibility to work abroad and regarding the applicable legislation and collective bargaining agreements.
With respect to the meal vouchers, we recommend our clients to review their current practices to confirm that they follow such restrictions.
Should this bill of law be sanctioned without vetoes, we still expect that some of this provisions will be subject to debate before Brazilian Labor Courts, with respect to their validity and applicability to employment agreements in force.
We will continue to follow the legislative progress reporting its developments and our team remain at your disposal to assist you in the review of the possible impacts of these changes to your current practices.