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Bolsonaro authorizes suspension of labor contract in Brazil, medical insurance stays

Christian Fernsby |
President Jair Bolsonaro authorized the suspension of the labor contract for up to four months in Brazil, as a provisional measure published in Diario Oficial on Monday.

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The provision, which will be in force for 60 days, considering the period of public calamity due to the coronavirus, must be approved by Congress within that period, or it will expire if not approved.

During this period, according to the measure, the employees stop working and the employer stops paying their salary. However, the company must continue to pay their medical insurance and offer them online training courses.

It can also grant a monthly non-salary compensatory sum with a value freely defined between the employee and the employer, through an individual negotiation.

The negotiation between the employee and the employer to terminate the contract and its conditions must be individual and does not need to consider the collective agreements and labor laws in the Federal Constitution.

Signed by Bolsonaro, the provision also establishes standards for telework, the anticipation of individual vacations, collective vacations, and the suspension of administrative requisites in terms of safety and health at work, among others.

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