The major reform of Brazilian labour law announced in July, all
being well, will come into effect in the middle of November.
Brazil's outgoing labour code dates from 1945 and provided
one of the world's most employee friendly labour regimes. As
with Macron's France, the Brazilian government views the
current code as a contributor to Brazil's high levels of
unemployment (between 12% and 14% in 2017). It is the usual
perceived trade-off between workers' rights and work
opportunities, producing similar reactions from Brazilian trade
unions.
The changes are many and wide ranging and may yet be subject to
late amendment. Global employers operating in the country will need
to review their employment contracts, policies, payroll processes
and handbooks to reflect them. Here is a brief overview:
