Extension of the Brazilian New Emergency Program for Maintenance of Employment and Income

The Acts of the President of the Brazilian National Congress No. 41 and No. 42 were published on June 16, 2021, in the Brazilian Official Gazette, extending for sixty (60) days the effectiveness of Provisional Measures No. 1,045 and No. 1,046 of April 27, 2021 (“PM 1,045/21” and “PM 1,046/21”). Such PMs provide for new measures to combat the COVID-19 pandemic, especially the possibility of suspending labor agreements and reducing working hours and salaries.

Due to such extension, the alternatives provided for in the Provisional Measures mentioned above are valid until August 25, 2021.

Our Labor Team is monitoring updates on this issue and we are available to assist you with any related matters.