Brazil: law adopted liberalizing sub-contracting

On 22 March legislation (Lei da terceirização) was adopted that opens recourse to sub-contracting to all business activities rather than as previously was the case just to activities unrelated to the company’s primary business. The text also extends the maximum length of a temporary employee’s employment term by three months (can be renewed under certain circumstances) to six months.
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Sub-contracting. Currently companies can only outsource activities unrelated to the company’s core business, such as garden maintenance, cleaning services, and catering. However no law existed up until now that clearly addressed these practices. Only one piece of jurisprudence from a 2011 Superior Labor court (Tribunal Superior do Trabalho) decision currently serves as a reference for distinguishing between these different activities.

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