Government extends to 180 days the maximum period to implement job and income preservation measures
Federal Government enacted yesterday Decree 10,470, which extends the period for companies to implement actions of the emergency program for maintenance of jobs and income, what was previously addressed through the Executive Order 936/2020 and Law 14,020/2020.
Therefore, companies may now implement the reduction of working hours and pay, as well as the suspension of the employment agreement, for the total period of 180 days.
The above total period must consider all actions already implemented since the issuance of EO 936/2020, which originally allowed the reduction of working hours and salary pay for up to 90 days and the suspension of employment for up to 60 days.
Finally, these employment measures can only be implemented during the public calamity recognized by the Government (at this time until Dec. 31, 2020) and the payment of the public financial aid will depend on budgetary availability.