Government extends the period to implement job and income preservation measures

The Brazilian Federal Government issued yesterday (October, 13, 2020) the Decree # 10.517, which authorizes a new extension of the term for employers to implement the measures foreseen on the Emergency Employment and Income Maintenance Program, previously regulated by Provisional Measure # 936/2020 and, currently, by Law # 14.020/2020 and Decrees # 10.422 and 10.470.

Thus, employers will be able to proportionally reduce working hours and salaries, in addition to the suspension of the employment agreements, for a total period of 240 days.

The total term above must take into account all the measures already implemented since the execution by employers of the Provisional Measure # 936/2020, which originally allowed the reduction of salaries and working hours for a period of up to 90 days and the suspension of labor agreements for a period of up to 60 days.

Finally, the measures above can be implemented only as long as the state of public calamity lasts (at this time, until December 31, 2020), and the payment of the Emergency Benefit depends on the Federal Government budgetary availability.”