The extension of the deadline for temporary suspension of employment agreement and reduction of working hours and salary is regulated

The possibility of signing agreements for reduction and temporary suspension of employment relationship, provided for in the Law 14,020/2020, resulting from the conversion of the MP 936/2020, was extended by Decree 10,422/2020, published in the Official Gazette of July 14.

The deadlines for entering a proportional reduction in the number of working hours/salaries and suspension of the employment relationship agreement were extended, as follows:

Follow the deadlines for each measure:

Employers who intend to suspend agreements and reduce hours and salaries of workers already subjected to these practices will need to establish new agreements with their employees, not being able to benefit from the “automatic” extension of deadlines.

It is important to note that reductions and suspensions already granted must be added to the total period established in the Decree. For example: If the company has reduced the salary for 90 days, it may extend the reduction or suspend the contract for another 30 days so as not to exceed the 120-day period.

Intermittent work

The decree also provides that employees with intermittent employment contracts shall be entitled to the monthly emergency benefit in the amount of BRL 600.00, for the additional period of one month, from end of the three-month period (referred to in Article 18 of Law 14020/2020).

Emergency Program

The granting and the payment of the emergency benefit for preservation of employment and income and the monthly emergency benefit, subject to the deadlines provided for in Decree 10.422/2020, are conditional to budget availability.