Publicado em 24/03/2020

Executive Order 928/2020 – Revocation of permission to suspend employment agreements without collective bargaining agreement

The Federal Government enacted yesterday night (March 23) the Executive Order 928 (MP 928) which, among other aspects related to access of information, revokes article 18 of Executive Order 927 enacted on Sunday.

Such Article 18 set forth the possibility of suspension of employment contracts for a period of up to 4 (four) months, through the granting of professional qualification courses to the suspended employees, without prior collective bargaining negotiation with the employees’ labor union and without any minimum compensation to the employee or access to the unemployment benefit from the federal government.

In this scenario, the suspension of employment remains regulated by the Brazilian Labor Code, and requires prior collective bargaining negotiation and the employees affected may apply for the federal government unemployment benefit.

The  Federal Government is expect to adopt additional measures within the next days and we will continue to keep our clients informed of developments in this regard.