On Tuesday 1 April, Brazil’s economy ministry announced a series of emergency measures to protect jobs and wages during the Covid-19 health crisis (provisional measure no. 936). It sees the government allow workers on an employment contract (‘carteira assinada’) to receive compensation in the event their working hours are reduced or they cannot work at all. Companies that resort to this state support meanwhile will have to guarantee jobs for the entire period for which the support is requested, as well as for a period of equal length once that aid ends.
Working time (and subsequently wages) may be reduced by 25%, 50% or 70% for a period of three months. Employment contracts can also be suspended for a maximum of 60 days. In such cases, unemployment benefits would cover the loss of pay. The amount of compensation paid will calculated as a percentage of what an individual would receive in the event of a layoff.
Conditions. In return, companies that take advantage of this state support will have to guarantee jobs throughout the period for...
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