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ARTICLE · 22 SEPTEMBER 2017

Understanding Brazil's Labor Reform

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The labor reform proposed by the Brazilian federal government was sanctioned by President Michel Temer back in July.

BrazilEmployment and HR
Marco Sottovia
Marco Sottovia
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The labor reform proposed by the Brazilian federal government was sanctioned by President Michel Temer back in July. The changes will go into effect in November this year, providing a new feature to employee/employer relations.

Like any change of this magnitude, Brazil's labor reform has faced resistance and caused heated debates between those who approve and those who don't. But, bottom line, the reform is happening. The reform will enter in effect this November and, if well implemented and correctly interpreted, it should benefit everyone involved. On one hand, by significantly reducing labor charges and risks, which ultimately can bring economic gains to companies. On the other hand, it should significantly boost the creation of jobs.

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