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Programa de Proteção ao Emprego - PPE

Por :

7/13/2015 9:00 PM Demarest News

​Employment Protection Program - PPE
Provisional Measure No. 680 from July 06, 2015
Dear clients,

Last Tuesday (July 07, 2015), the Provisional Measure No. 680 establishing the Employment Protection Program - PPE was published on the Official Gazette of the Federal Government.

In summary, the Provisional Measure creates a program aimed at companies undergoing economic-financial difficulties, in which the companies adhering thereto may reduce the working hours and salaries of their respective employees.

The Provisional Measure sets limits to the scope of collective bargaining agreements, the maximum length of the reduction in the hours, the minimum amount employers are allowed to pay and it also restricts situations in which employees affected by the reduction may be terminated without cause. Hiring new employees to perform the same activities the employees covered by the program perform will also be restricted.

The adhesion to the PPE will last for the maximum period of 12 months and companies may adhere thereto by December 31, 2015.

In order to adhere to the PPE, the company must prove that it meets, further to the other conditions the Employment Protection Program Committee - CPPE (a committee created under Decree No. 8479 of July 06, 2015) will set, the following requirements:

• Enrollment with the National Register of Corporate Taxpayers (CNPJ) existent for at least 2 years;
• Good standing with tax, social security and unemployment saving fund (FGTS) obligations;
• Proven economic-financial difficulty based on information to be determined by the CPPE; and
• Existence of a specific Collective Bargaining Agreement registered with the Ministry of Labor and Employment (MTE).

The participating companies' employees whose working hours and salaries are reduced pursuant to the Provisional Measure will be entitled to a monetary compensation equivalent to 50% of their salary reduction and capped at 65% of the maximum unemployment insurance portion, whereas such compensation will be funded by the Brazilian Workers Support Fund (FAT). On the terms of the Provisional Measure, the FGTS to be deposited by the employer will be included not only in the remuneration the employer pays but also in the monetary compensation that is FAT-funded.

The CPPE will establish the rules and procedures related to the conditions and eligibility for adhesion to and participation in the PPE, the forms of adhesion, and the suspension and interruption of the program.

Our labor team is at your disposal to provide any further information and/or clarification.
Demarest Advogados 
Cássia Pizzotti ​+55 11 3356-1710
​Renato Canizares +55 11 3356-2173

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