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ARTICLE · 13 JULY 2015

Employment Protection Program – PPE

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During the EPP's period, and for an additional period equivalent to 1/3 of the EPP, companies may not dismiss workers included in the program.

BrazilEmployment and HR
Roberto Pierri Bersch
Roberto Pierri Bersch
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Through a Provisional Measure and a Presidential Decree, both published on July 07, 2015, the Brazilian Government created the Employment Protection Program – EPP as an alternative to preserve jobs and prevent the dismissal of workers.

Companies facing economic difficulty can join the EPP and, upon negotiation with the employees' union, cut up to 30% of the work hours and pay, for a maximum of 12 months. The reduction must apply to all of the company's employees or at least one specific sector or branch. It is possible to sign-in until December 31, 2015.

Workers whose pay are cut will be entitled to financial compensation, to be paid by the Federal Government, in the amount equivalent to half the amount cut, limited to R$ 900.84, which corresponds to 65% of the largest unemployment insurance amount.

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