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  • Ferraresi Cavalcante – Advogados

Executive Order of Economic Freedom provides autonomy to companies and create jobs


The Executive Order (Medida Provisória in Portuguese - MP) of Economic Freedom, which seeks to reduce bureaucracy and the influence of the state in companies, paved the way for more changes in labor relations and brought new controversies. Working on Sundays and holidays, with impact on remuneration, and the end of the mandatory registration of time are part of the list. Executive Order 881 recognizes the autonomy of the parties and the lesser influence of the state on labor relations. This reduction has been adopted since the labor reform.


The base text of the MP was approved by the House, by 345 votes to 76. It must also pass in the Senate until 8/27. Otherwise, it loses its validity. By the MP, all categories would be free to work on Sundays in the country. Today, you need legal specification or agreement with unions. A day off would be guaranteed every four weeks. A mandatory break on a Sunday every seven weeks was considered. The subject is controversial and will generate discussions because it should increase the number of jobs in the medium term. Many sectors already expected this. But there is the social issue, which is family life. The breach affects bankers, who can be called on Saturdays


It should also generate debate on the remuneration of Sundays and holidays worked. Under the new rule, pay would be doubled unless the boss set another day off to compensate.


Labour Hours control may cease to exist as the MP also releases the point by exception. The employee would have to register it only in cases of time off or when working overtime. All party highlights presented by the Executive Order for Economic Freedom were rejected yesterday at the House Plenary. The text will be sent to the Senate as an amendment to the document's rapporteur, Federal Deputy Jerome Goergen (PP-RS). Among the rejected highlights is what was meant to exclude the employer's permission to use the timecard system by exception with a written individual agreement, collective agreement or collective agreement.


Another highlight was to remove from the MP the item that prohibits the collection of debts of a company using assets of partners or other companies of the same group. For example, work on Sundays without a 100% surcharge and the requirement of a collective agreement for work on Sundays and holidays were also maintained. Most of the deputies also overturned the highlight that intended to prevent the extension of the effects of the bankruptcy of the company to the partners.

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