Labor and employment: 7 topics that companies should keep track of in 2024

Recent changes will require companies to adapt for compliance in the labor front.

By Luciana Lupinucci

Brazil boasts an extensive set of labor rules and regulations. And 2023 was marked as a year of numerous changes and amendments in this regard. Now, in 2024, some changes are starting to be incorporated by companies into their daily workflows, while others, which are already enforceable, should be further consolidated into their routine processes.

Non-compliance with these rules can result in fines, penalties and legal sanctions, which poses risks to a company’s finances and reputation. Hence, it is crucial to stay abreast of the upcoming changes and plan ahead to ensure compliance with each requirement.

Below, we have outlined 7 recent labor changes and topics that will require close attention from companies in 2024:

1. Discontinuation of the DIRF

The Withholding Income Tax Return (DIRF) will soon come to an end. In February of this year, employers will be filing their final returns, as this obligation will no longer be required from 2025 onwards.

In terms of labor law obligations, starting January 1, 2024, payment information must be reported through the eSocial system, which has been adjusted to accommodate all the relevant data.

Details on salary payments, income tax withholdings, exemptions and deductions will transition to the new system. Other information, such as rent payments, pensions, and profit sharing, will be reported using the EFD-Reinf.

With the discontinuation of the DIRF, employers should be aware of the new method for reporting payments related to group health plans, which now fall under employee benefits. This matter, however, is still subject to further regulation by the Federal Revenue Service.

2. Submissions via DCTFWeb

Additionally, following the discontinuation of the DIRF, starting from the January 2024 assessment period, the PIS/PASEP taxes levied on a company’s payroll and registered on the eSocial will be reported using the DCTFWeb, along with other obligations.

Payments are scheduled for February 2024 and will be processed through a numbered Federal Revenue Payment Form (DARF) issued by means of the DCTFWeb. Click here to read more (in Portuguese).

3. FGTS Digital

Starting March 1, the FGTS Digital system will commence operations. This system not only replaces the SEFIP platform for generating monthly or severance contribution payment forms but is also seamlessly integrated with the eSocial, being able to import data supplied by employers. Key changes include:

New due date

The due date for paying monthly FGTS contributions has been shifted to the 20th day of the month following the month of assessment. Keep in mind, however, that, until the system’s full deployment, which is scheduled for March, payments remain due by the 7th day of the month following the assessment month.

Conversely, the deadline for making FGTS payments resulting from employment termination and compensatory indemnity (FGTS fine) remains up to 10 days from the contract's end.

Payments made exclusively via Pix

Pix - the Brazilian instant payment platform - will become the sole method for making FGTS payments. The slips will generate a QR Code for payment at financial institutions. The "Pix - Collection" mode, tailored for FGTS Digital slips, ensures that all payments are free of additional charges for both individuals and companies.

4. Measures to prevent and combat harassment and violence

In March 2024, one year will have passed since companies legally mandated to have an internal health and safety commission (CIPAA) were required to put measures in place addressing sexual harassment and other forms of workplace violence.

It is, therefore, paramount to assess your company’s progress in this regard, particularly in implementing the provisions outlined in Ordinance No. 4,219/2022. These measures encompass publicly disclosing the company’s rules of conduct, carrying out training sessions on relevant topics, establishing an anonymous reporting channel, and imposing sanctions for incidents of sexual harassment and violence.

5. Work on Sundays and public holidays

Effective March 1, MTE Ordinance No. 3,665/2023 has been enacted, removing several activities from the list of services automatically authorized to operate on Sundays and public holidays.

This change impacts sectors such as wholesalers and distributors of manufactured goods, car dealerships, trade in port and airport terminals, road transport trade and general retail services.

In the past, the possibility of carrying out these business activities on Sundays and public holidays depended solely on the existence of a clause in the employment contract. Under the new regulation, authorization can now only be granted through a law enacted by the corresponding Municipality or through negotiation with the respective trade category, by means of a collective bargaining agreement.

6. Equal pay for women and men

In essence, the regulations recently issued in this regard provide for measures to counteract unequal pay for work of the same or equivalent value.

To ensure transparency, companies with over 100 employees are required to publish semi-annual reports detailing the remuneration criteria they adopt. This allows for a comparison of salaries, wages, and the distribution of job positions held by the workers.

Further reading: Equal Pay Act: find out how companies are impacted by the regulation

7. Labor claims on eSocial

Although in force since October 2023, the requirement to report events relating to labor claims on the eSocial system needs to remain on the radar throughout this year.

Companies are now required to report information on lawsuits that contain a final and unappealable court decision or an in-court settlement, which became final and unappealable on or after October 1, 2023, even if the claim was filed at an earlier date.

Information must be submitted by the 15th of the month following the date on which one of the following occurs: the judgment becomes final and unappealable; an in-court settlement or award calculation is ratified; an out-of-court settlement is signed; an agreement is entered into with the Preliminary Conciliation Commission (CCP) or Interunion Centers (Ninter).

Read more: Labor Lawsuits in the eSocial: find out what must be reported

Other takeaways

It is worth noting that there are other important issues to stay abreast of throughout 2024, including the gradual revocation of payroll tax reliefs, as set out in Provisional Presidential Decree No. 1,202/2023, and a potential overhaul in the 2017 Labor Reform, currently under discussion.

Labor compliance

Staying well informed and seeking expert advice are essential for navigating the intricacies of Brazil’s complex labor landscape.

Our team at Domingues e Pinho Contadores assists companies and individuals in overcoming challenges in this realm, ensuring full compliance with the regulations. Reach out to us at: dpc@dpc.com.br.