New extension of suspension for contract and reduction of working hours and salary for sixty additional days

The Decree 10,470 extends the deadlines of the agreements of Emergency Benefit for the Preservation of Employment and Income (BEm) for up to 180 days.

25/08/2020

HIGHLIGHTS

New extension of suspension for contract and reduction of working hours and salary for sixty additional days


The Decree 10,470 was published in the Extra Edition of the Federal Official Gazette of Aug-24-2020, extending the deadlines of the agreements of Emergency Benefit for the Preservation of Employment and Income (BEm) for up to 180 days, related both to the proportional reduction of working hours and salary and to the temporary suspension of the employment contract.

The maximum deadlines for entering an agreement for proportional reduction of working hours and salary and temporary suspension of employment contract, considered the extension of Decree 10,422/2020, have sixty (60) additional days, to complete the total of 180 days.


Measures

Original deadline

MP 936/Law 14,020

Extension Decree 10. 422

Extension Decree 10.470

Total

Working hours/salary reduction

90 days

30 days

60 days

180 days

Suspension of the employment contract

60 days

60 days

60 days

180 days


The decree also establishes that employees with intermittent employment agreement, formalized until the date of publication of Provisional Measure 936/2020, will be entitled to a monthly emergency benefit in the amount of BRL 600.00 for an additional period of two months from closing date of the four-month period in which the benefit had already been granted.

Note: All the above deadlines are limited to the duration of the state of public calamity recognized by Legislative Decree 6/2020, and the public health emergency of international importance arising from the coronavirus, which is dealt with in Law 13,979/2020, i.e. Dec-31-2020.

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