Federal Government institutes the Emergency Employment Support Program

The Emergency Employment Support Program was created, aimed at carrying out credit operations with entrepreneurs, business companies and cooperative companies, with the exception of credit companies, for the purpose of paying their employees' payroll.

Provisional Measure No. 944 is part of the Federal Government's package of measures to mitigate the economic effects of the coronavirus.

Important:

The credit lines granted will be destined exclusively to cover the entire payroll of the Legal entity contractor, for a period of two months, limited to the equivalent salary amount of R$ 2.090,00 per employee.

Who can join

The program is planned to:

a) entrepreneurs;

b) business companies; and

c) cooperative societies.

For membership, proof of annual gross revenue greater than R$ 360.000,00 and equal to or less than R$ 10.000.000,00 is required, calculated based on the 2019 financial year.

Note: Credit societies are outside the emergency program.

Contractual obligations of the contractor

Employers who join the program will contractually assume the following obligations:

a) provide truthful information;

b) not using the resources for purposes other than paying their employees; and

c) not terminating, without just cause, the employment contract of its employees in the period between the date of contracting the credit line and the sixtieth day after receiving the last installment of the credit line.

Note: Failure to respect these obligations implies the early maturity of the debt.

Program costing

In the credit operations contracted under the Emergency Employment Support Program:

a) 15% of the value of each financing will be paid from the financial resources of the participating financial institutions; an

b) 85% of the value of each financing will be paid for with Union resources allocated to the Program.