Provisional Measure 1.045: overview on the New Emergency Employment and Income Maintenance Program

Last Thursday (12), the House of Representatives concluded the vote on the Provisional Measure No. 1.045/21 (MP 1.045/21), which foresees the New Emergency Employment and Income Maintenance Program, presenting complementary measures to face the consequences of the COVID-19 pandemic.

The text was already sent to the Federal Senate and, if approved, to presidential approval. Our Strategic Labor team evaluated MP 1.045/21 and highlighted its outlines. Take a look!

• Special Regime to Stimulate Work, Qualification and Labour Inclusion (Requip): intends to create opportunities for Bolsa Família beneficiaries with up to two minimum wages and people from 18 to 29. Those without a registered work contract for more than two years are allowed to participate. The program foresees bonuses for those who complete the workload or participate in the 180-hour qualification program. Participants will have no employment relationship of any nature, nor labor and social security rights.

• First Opportunity and Reintegration into Employment Program (Priore) is aimed at young people between 18 and 29 years old, in the case of their first formal job, and people over 55 years old without a registered work contract for more than 12 months. The contract carried out through Priore will be entered into for a fixed period, at the employer’s discretion. The employee receives a salary bonus, maintains working rights such as vacation, 13th salary, overtime bonus, but will be entitled to a lower Time of Service Guarantee Fund (FGTS). The employer, depending on its size, starts to collect an FGTS rate limited to 6%.

• It gives greater power to individual agreements between companies and employees, limiting the scope of judges to nullify points in those agreements.

• It adds specific rules for offering benefits to pregnant women and domestic workers, who may have their employment contract suspended, by mutual agreement, as they cannot perform their duties under a telework regime. In the case of pregnant women, the employer must inform the entry into maternity leave to the Ministry of Economy, suspend the rules of the salary and working hours reduction or suspension program, and pay the compensation based on what she received before entering the program.

• It reduces overtime pay for some professional categories, such as bankers, journalists, and telemarketers.

• The proposal increases the working hours limit for miners to 180 hours per month. Today, their workload is up to 144 hours.

• Prohibit the unfair dismissal of the disabled person before the end of the COVID-19 pandemic scenario.

• It restricts free legal assistance to those with a monthly per capita family income of up to half a minimum wage or a monthly family income of up to three minimum wages.

If you want to receive a legal opinion with a complete and straight to the point analysis of the Provisional Mesure No. 1.045/2021, please contact partners

Otávio Pinto e Silva
otavio@siqueiracastro.com.br

André de Souza Santos
andresantos@siqueiracastro.com.br