The Federal Decree No. 10,422/2020 (“Decree”) published today by the Brazilian Government extend terms to negotiate agreements regarding proportional salary and working hours reduction and temporary suspension of employment agreements, as well as rules related to the payment of the emergency benefit provided by the government.
The sum of the extension term provided by the Decree and the periods of salary reduction and/or contract suspension already applied by employers cannot exceed 120 days, as highlighted below:
As regards to the period of temporary suspension of employment agreements, the Decree highlights the possibility to fractionate such suspension into two successive periods or interleaved periods, provided that such periods are equivalent to or higher than 10 days each and do not exceed the maximum period for temporary suspension of employment agreements of 120 days.
Employees hired by means of intermittent employment agreement will be entitled to receive the emergency benefit in a total amount of BRL600, for an additional period of one month, counted from the end date of the period of three months, as established in Article 18 of Federal Law No. 14,020/2020 (conversion of Provisional Measure No. 936/2020 – “MP 936”).
The payment of the emergency benefit by the government, as well as the emergency benefit highlighted in the paragraph above will be conditioned to budget assignments.
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