Brazilian New Emergency Program for Maintenance of Employment and Income

Provisional Measures No. 1045 and 1046 of April 27, 2021 (“PM 1045/21” and “PM 1046/21”) were published on April 28, 2021 in the Brazilian Official Gazette, providing for new measures to combat the COVID-19 pandemic, especially the possibility of suspending labor agreements and reducing working hours and salaries.

These Provisional Measures bring similar provisions to those contained in the previous Provisional Measures (PM 927/2020 and PM 936/2020). We summarize the main rules provided for in the new Provisional Measures:

• Provisional Measure 1046/21

Provisional Measure 1046/21, in turn, provides for additional measures to combat the COVID-19 pandemic:

• Change of the regime of on-site work to remote work and vice-versa, even if there is no individual or collective agreement, waiving the registration in the employment agreement (during the period of 120 days from the publication of the Provisional Measure); the provisions regarding the responsibility for the acquisition, maintenance and supply of equipment and infrastructure necessary for the provision of teleworking must be signed in advance or within thirty (30) days, counting from the date of the change in the work regime.
• Bringing forward of individual vacations, by written or electronic notice, 48 hours in advance, and possibility of splitting into periods of not less than five (5) days / possibility of deducting vacations brought forward from severance payments;
• Granting of collective vacation, by written or electronic notice, 48 hours in advance, without the need to observe the limits provided for in the Labor Code, even allowing the granting for a period of more than 30 days;
• Possibility of bring forward holidays, by written or electronic notice, 48 hours in advance, for subsequent compensation (inclusive of the balance of the bank of hours);
• Adoption of a bank of hours for compensation within a period of up to eighteen (18) months, calculated from the end date of the period of 120 days from the publishing of the Provisional Measure, with the possibility of compensation, including on weekends (in compliance with the provisions of art. 68 of the Labor Code, which deals with the authorization to work on Sundays);
• Suspension of the obligation to carry out medical occupational exams, except for termination exams:

1. 1. workers who are in a teleworking regime, remote working or working at a distance: exams may be carried out within 120 days from the end of the PM’s term; and
   2. workers in on-site activities: exams may be carried out within 180 days from the Provisional Measure’s expiration date.

• Suspension of the requirement to pay the FGTS due in May, June, July and August 2021. The payment can be made in up to four (4) parcels, due from September 2021.

We are available to assist you with the implementation of the alternatives brought by these Provisional Measures and other related matters.