Companies Show Reluctance in Adopting New Labor Laws

10/20/2017 - 11h25

While judges and prosecutors have started to take a stand against the new labor laws, many companies have shown reluctance when it comes to adopting the new measures enabled by the reform.

The new legislation will take effect on November 11th.

"The recommendation is to not make abrupt changes. It is important to discuss them with the labor unions and to abide by formal negotiation requirements, simplifying potential lawsuits", said Maurício Guidi, at the Pinheiro Neto law firm.

According to the lawyer, the outlook is that a dispute is inevitable, and that it will take up to five years before companies fully assimilate the new labor laws.

"The debate will have to be taken to the Supreme Court, although most of the measures ought to persist."

According to Flavio Pires, a partner at law firm Siqueira Castro, the number of lawsuits filed is expected to go up – at least at first.

Intermittent employment is one of the topics that will most likely not be applied until a later moment - in other words, until the articles concerning the matter are more precise, says Ivo Dall Acqua Jr., vice president of Fecomercio SP.

"Technical adjustments need to be made. There are some contradictions in the government's bill that need to be clarified. Companies are being cautious", said Mr. Acqua Jr.

The 12 x 36 work hour system, in which employers can bypass collective bargaining, providing workers with 12 hours of work followed by 36 hours of rest, will also, most likely, not take place at first, according to Carlos Augusto Pinto, at Sinhores (Hotel, Restaurant and Bar Union).

"It would be more prudent for companies to keep negotiating with the unions".

Translated by THOMAS MATHEWSON

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	Getty Images/BBC-Brasil
	Protest against the reform of labor laws in Brazil