Law # 13,429 of March 31, 2017 - Outsourced work
As widely publicized by the press media, last Friday night, March 31st, 2017, it was published in the Official Gazette the Law #13,429/2017, result of Bill 4,302/1998, with the presidential negatives already included.
Mentioned law confirmed the main changes the bill provided for, in what concern the rules of general outsourcing and temporary work in Brazil.
Among the changes, it is worth to point out the following:
We reinstate that engaging in temporary and outsourced work services must continue to be surrounded with caution, since the changes brought by the Law # 13,429/2017 do not rule out the subsidiary liability of the services taker and do not authorize outsourcing in an unrestricted manner or contrary to the Labor Code (CLT).
The lawfulness of outsourced work will continue to be subject to the Labor Courts' judgement based upon the effective relationship held between the contracting company and outsourced workers.
Finally, we highlight that based upon Government's statements, it is probable that in a close future there are defined specific rules for the validity of the outsourcing, among which we highlight a possible express prohibition of terminating employees and, right after, hiring them as services providers.
We will keep you informed about any news and remain available for clarification about this issue.