Brazil: Overview of Recent Labor Reform

Labor reform in Brazil was approved on July 13, 2017, amending several articles of the Labor Code and Laws 6,019/1974 (temporary employment), 8,036/90 (severance fund) and 8,212/1991 (social contributions). The legislation still protects the constitutional rights of workers. However, it seeks to modernize labor relations by creating rules and defining concepts that did not exist in the legislation until now and that allow workers, companies and unions to have more freedom to negotiate their rights. Another purpose of the labor reform is to seek legal assurance by limiting the labor courts' interference in labor relations, especially those regulated by collective bargaining agreements.