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ARTICLE · 01 NOVEMBER 2017

Labor Overhaul Has Been Approved – What Changes?

Today (July 13, 2017), the Labor Overhaul was signed into law by President Michel Temer. The Labor Overhaul will enter into effect 120 days after its publication and will bring significant changes...

BrazilEmployment and HR

Today (July 13, 2017), the Labor Overhaul was signed into law by President Michel Temer. The Labor Overhaul will enter into effect 120 days after its publication and will bring significant changes to labor relations and labor law itself.

The Consolidated Labor Statutes (CLT) is said to be outdated in some aspects and no longer governing labor relations in a proper and adequate manner. The Labor Overhaul introduces and changes several articles of the CLT aiming to give more flexibility and legal certainty to labor relations thus meeting current demands of society.

Many of the proposed changes have already been adopted and claimed by companies through collective bargaining agreements, but have been blocked by the courts under the argument that they breach the law.

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