New Supreme Court position regarding the coronavirus as working disease

During a video conference session held on April 29, 2020, the plenary of the Supreme Court suspended, by majority of votes, the effectiveness of Article 29 of Executive Order n. 927/20, issued as a response to the coronavirus pandemic. Referred to article provided that potential COVID-19 contamination cases should not be deemed as working diseases, except upon presentation of a clear causation. 

The decision was issued after the filing of claims sustaining that the Executive Order was inconsistent with the Federal Constitution, under the argument that it breached fundamental employment rights. The supreme court decision was based on an argument raised by Justice Alexandre de Morais, who sustained that Article 29 did not provide proper value to work and would infringe the rights of employees working in essential activities, permanently exposed to risks.

The possibility that any leave of absence caused by COVID-19 can now be considered as a working disease can trigger serious impacts for Brazilian employers, such as the characterization and grant of specific benefits by the Social Security (such as the B91) that triggers job security, in addition to impacts on Social Security rates (FAP and SAT/RAT rates), among others impacts. 

Our employment and social security teams are available to assist you in relation to the impacts caused by this relevant recent Supreme Court decision.