Brazil labor reform (2017)
The 2017 labor reform in Brazil was a significant change in the country's Consolidation of Labor Laws. According to the government, the goal of the reform was to combat unemployment and the economic crisis the country was going through at the time.
The bill was proposed and sent to the Chamber of Deputies by the president Michel Temer on December 23, 2016. Since then, during its processing in the National Congress, it was going through several debates and additions to the original bill, for example, the proposal to end the obligatory syndicate tax paid by workers hired under the CLT.
The bill was approved by the Chamber in April 26, 2017, with 296 favorable votes and 177 against. Later, in the Federal Senate, it was approved on July 11, 2017, by 50 versus 26 votes. It was then sanctioned by the president in July 13, 2017, with no vetoes. The law will start to be valid in November 11 of the same year, 120 days after the sanction.
Labor reform was controversial in Brazilian society. Its supporters argue that the reform addresses legal certainty and increase the number of jobs. Its critics argue that the reform violates the Brazilian constitution and International Labour Organization conventions signed by Brazil.
Changes
Most of the changes involve intricate details. The most simple changes are:| Current rule | New rule | |
| Union tax | The tax is obligatory. The worker must pay the equivalent of one day of work every year | The contribution is optional. |
| Vacation | The 30 day annual vacation time can be divided into at most into two periods. One of them can't be shorter than 10 days. | They can be divided into three periods at most, through negotiation, as long as one of the periods is at least 15 days long. |
| Home office | It isn't regulated under the legislation | Anything that the worker uses at home will be formalized via contract, such as equipment and expenses such as internet and electricity. The worker will get paid based on the tasks he accomplishes. |
| Working hours | Limited to 8 hours per day at most, or 44 hours per week. There can be two extra hours per day at most. | They can be 12 hours per day at most, with 36 hours of rest, as long as the 44 hour limit is respected. |
| Time at work | The CLT considers that the work hours correspond to the period in which the worker is available, including the moments when he is awaiting orders. | The moments when the worker is doing activities not directly related to his job, such as rest, lunch, interaction with coworkers, personal hygiene, etc., is not included in the work hours. |