Brazil: although the government clarifies certain points in its new labor legislation uncertainties still remain

In force since 11 November 2017, Brazil’s Labor Code reform (Consolidação das Leis do Trabalho – CLT, c.f. article No. 10312), which the country’s parliament voted in during the summer, and which either alters or adds more than 200 articles is starting to affect businesses’ operations as they try to adapt to the new standards. The government sees the CLT as a much needed essential modernization move for the country, and as underlined by the Minister for Labor, Ronaldo Nogueira “a way to have standards that are comparable with those of developed countries”, and which is also expected to generate jobs. In contrast however, other concerned actors view the law, which was adopted in record time and without social consultation, as weakening both workers’ rights and the role of trade unions.
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Initial ordinance. In the spring of 2017 and in a bid to speed the law’s adoption, President Michel Temer had promised to continue with further modifications on the issues up for discussion via ‘provisional measures’ in the form of ordinances. On 14 November, a few days following the law’s official coming into force the President undertook the first ordinance, which addresses several aspects, the main ones of which are:

  • An 18-month quarantine period established that must be respected before an
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