Recent developments in Brazil
We understand the challenges of staying up-to-date with changes in labour laws and regulations. That’s why we actively monitor these changes, so you don’t have to. Read on to discover what’s been happening in the employment market in Brazil.
National minimum wage increase (2024)
Effective January 2024, the Social Security Income Band was increased where the minimum monthly based income is BRL 1,412 (previously BRL 1,320) and the maximum is BRL 7,786.02 (previously BRL 7,507.49). This change was enacted through Decree No. 11,400/2024, reflecting the government’s commitment to improving the standard of living for low-income workers. The adjustment considers the country’s inflation rate and aims to provide better purchasing power for essential goods and services. This increase impacts a broad spectrum of workers across various sectors, including temporary agency workers who often rely on the minimum wage as a baseline for their earnings.
New regulation for temporary agency workers (2024)
Effective March 1, 2024, Brazil has introduced comprehensive new regulations for temporary agency workers under Law No. 14,500/2024. These regulations address long-standing issues within the temporary employment sector by setting stricter standards for employment agencies and ensuring better protection for workers. Key provisions include mandatory registration for temporary work agencies, regular audits to ensure compliance with labour laws, and requirements for providing temporary workers with contracts detailing their rights and responsibilities.
Extension of parental leave (2024)
Effective July 1, 2024, the Brazilian government has extended parental leave for temporary agency workers from 120 days to 180 days through an amendment to the Consolidation of Labor Laws (CLT) via Law No. 14,510/2024. This extension underscores the importance of family welfare and aligns temporary workers’ rights with those of permanent employees. The extended leave is designed to support new parents during the critical early months of their child’s life, promoting better health outcomes for both mothers and infants. Employers are required to maintain the temporary worker’s position during this period, providing job security upon their return.
Introduction of remote work policies (2024)
Effective June 1, 2024, Brazil has implemented new policies for remote work that significantly impact temporary agency workers. Provisional Measure No. 1,200/2024 stipulates that employers must provide necessary equipment and cover expenses related to home office setups, such as internet and utility costs. This measure acknowledges the growing trend of remote work, accelerated by the COVID-19 pandemic, and aims to ensure that temporary workers are not disadvantaged by the shift away from traditional office environments. Employers must also offer flexible working hours and ensure that remote work does not impede workers’ rights to disconnect outside of regular working hours.
Internal committee for accident prevention and harassment (2023)
Following the enactment of Law 14.457/2022 in September 2022, it has become mandatory for companies to establish a CIPA—now expanded and renamed as the “Internal Committee for Accident Prevention and Harassment”—to initiate and enforce protocols to proactively mitigate cases of sexual harassment, as well as other types of violence within the workplace.
