In force since July 07, Brazil’s job protection program the PPE aims to support businesses in the industrial sector that are affected by the economic slowdown. The program will subsidize workers’ pay thereby allowing some companies to avoid having to implement layoffs as a way of smoothing out lower production levels. In this way the government hopes to limit the number of redundancies and also keep public finances in balance.
Initially set up on a trial basis the PPE is a Presidential decree with the weight of law but needs Parliamentary approval within three months of its Presidential signing. The PPE applies to all industry sectors and especially to the sugar, alcohol, metals, automobile, electronics, and meat processing sectors that have been particularly affected by Brazil’s economic downturn.
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