The Brazilian House of Representatives approved on March 22,
2017 a bill of law that substantially modifies the rules of
outsourcing and temporary work. The bill of law still depends on
the approval of the President to come into full force and
effect.
The bill of law approved by the House of Representatives
authorizes the outsourcing of any activities, even those considered
to be within the company's core business. It also sets forth
that the contracting company should only be liable for the
outsourced workers' labor obligations in case the outsourcing
company is unable to pay them (subsidiary/secondary liability). The
bill also clarifies that no employment relationship exists between
the contracting company and the outsourced workers. In other words,
the outsourcing company is the sole responsible for hiring and
paying the outsourced workers, as well as directing their work.
