Labor Reform completes one year in force

The Labor Reform has completed a year in force. Recalling, the Law 13.467/2017 added and also modified some provisions of the Consolidation of Labor Laws (CLT). In total, 54 articles were amended, 9 revoked and 43 created, thus renewing the labor legislation to adapt to current times.

Leonardo Bezerra, a Domingues e Pinho Contadores’ manager of labor and social security areas, commented how the application of some of the issues covered by the reform and its ramifications were. See below:

Increase in hirings

Leonardo says that a specific analysis on the client’s database managed by Domingues e Pinho Contadores shows a 15% increase in hiring during this period. "It is not possible, however, saying that these raised from the labor reform flexibilization. We did not identify hirings only supported by the reform, but always associated with other factors such as increased demand for labor."

Intermittent work and home office

Before the reform, the labor law did not provide for the intermittent work regime (per period, not continuously) and nor the home office.

“We do not register adhesions to intermittent work. We believe that this is because the issue is still not legally well defined”. Regarding the telework, the specialist says, "its gradual extension is due to the legal security that the labor reform promoted regulating the home office".

Terminations from mutual agreement

Leonardo believes, however, that a gradual increase in the use of mutual agreement termination is likely to occur. "With the new termination modality, employers and employees have found a new option that benefits the parties, either because of the economic issue, as it is advantageous for both the employer, who has the reduced termination cost, and the employee, who can to raise 80% of the FGTS balance, as well as for legal certainty brought by the regulations".

As a caveat, the expert advises that it is proven that the termination did not start exclusively from the employer, so that there can be no interpretation of coercion to adopt the modality for the sole purpose of reducing out-of-pocket costs.

Terminations and official confirmation of terminations at company’s facilities

For Leonardo, the process is made easier by the possibility of homologation being carried out in the company, except in cases where collect agreements contain a clause requiring the approval of the union. "The process got faster and more effective. The new practice facilitates the legal provision so that the payment of the termination fees and the homologation are completed in 10 days".

Outsourcing

With the recent STF positioning on outsourcing services, including the main activity, Leonardo says that client have made more inquiries about the subject. "I highlight that the misunderstandings in making a direct relationship between outsourcing and hiring of individual professional services, which has led us to guide some clients about the difference between these procedures, showing that a misinterpretation may expose employers to labor liabilities in the future ".

Time Bank Trading

The labor reform expanded the time bank trading form, including the possibility to negotiate without the participation of trade unions (when limited to six months). According to Leonardo, this has effects on the working hours control and calculation form. "In many cases, it is more beneficial to the employer because of the cost, but also to the employee, who has more flexibility in fulfilling the working hours and rest".

One point of attention is in relation to eSocial, since the inclusions and exclusions of hours in the bank, as well as its total sum control, must be informed in the digital environment. "The ideal path includes integration with the software used for payroll processing, as the time bank will be communicated in the set of eSocial periodic events, avoiding any exposure due to the failure or delay in sending this information to the system", he warned.

Vacation

Bezerra says that the new rules that increase the vacation breakdown require more attention from companies, and consequently generate a greater workflow. "Before reform, vacation was generally limited to a single period, so the control and calculation were simplified. With the flexibilization and the possibility of fractioning in up to three periods, associated to the fourteen-days minimum period rules and the remaining five days, the workflow related to this right control increased”, he explained.