Provisional Measures 927 and 928 – Labor & Employment Provisions to handle COVID-19 pandemic
The Brazilian federal government released on March 22 Provisional Measure (MP) 927 to govern labor and employment actions during this period, which may be adopted by companies to safeguard job positions and income as well as to handle the public calamity state acknowledged by Legislative Decree 6/2020 arising from the international public health emergency brought by COVID-19 pandemic, certified by the Ministry of Health in accordance to Law 13,979/2020.
MP 927 holds alternatives to temporarily smooth several aspects of labor collective and individual contractual relations as holidays and telecommuting services aside from bringing up a new temporary layoff procedure.
In view of the mass impact triggered by such legal provision, the federal government, after teasing audience by social media platforms, edited MP 928 on March 23 to revoke the new temporary layoff procedure aforementioned, which enabled employers to unilaterally keep employees at home without regular payments.
All remaining topics embedded by MP927 were sustained with no amendments, such as: softening of telecommuting, grant individual and collective holidays, postponement of vacation bonus payments and the unemployment severance fund deposits (FGTS) in addition to other measures in force as long as the public calamity state is in course.
Click here to have access to a guidebook drawn up by our Labor practice with a summary of the provisions set forth by MP 927 and 928.
For further information, contact:
André Blotta Laza
Marina Camargo Aranha
Gustavo Gomes Basilio
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