New Developments in the Employment Bill: Key Changes for Businesses and Workers

Introduction

The “Lavoro” connected bill is set to be approved in the upcoming hours by the Chamber of Deputies, after which it will proceed to the Senate.
This legislation introduces various changes aimed at protecting both workers and businesses, reflecting the ongoing efforts of the majority to reform the current labor framework.

This bill, containing about thirty articles, aims to facilitate access to temporary contracts and seasonal work while crackdowns on “exploiting unemployment benefits” practices, where workers stop showing up to force their employer to fire them and retain their unemployment rights.

Key Changes Overview

Here’s a summary of what will change following the approval of the Lavoro connected bill, covering essential areas like resignation protocols, integration fund modifications, trial periods, and more.

Resignation Protocols

One significant change introduces an automatic resignation protocol for employees failing to attend work for over 15 days without justification.
In contrast to previous regulations, which required formal resignation steps, this provision aims to streamline termination processes while protecting businesses.

Integration Fund Modifications

The new rules also amend the integration fund regulations.
Previously, unemployment benefits were suspended for the first six months when a worker took a job with another employer.
Now, benefits will be lost during any workdays across all employment types, regardless of the work duration.

Trial Period Adjustments

For fixed-term contracts, the trial period adjustments mean it will take one day for every fifteen calendar days, with a minimum of two days, and a maximum of 15 for contracts lasting over six months.
Contracts ranging from six months to one year can have a maximum trial period of 30 days, addressing concerns over fair evaluation.

Temporary Employment Contracts

In the current climate, there are caps on the percentage of temporary workers relative to permanent staff.
The new bill will exempt certain categories, such as employees hired for specific seasonal needs, those over 50, or those hired indefinitely, thereby encouraging more flexible hiring practices.

Seasonal Work Enhancements

The bill expands the scope of seasonal work categories, adding various activities aimed at addressing peak demands throughout the year, thus providing more opportunities for workers in these sectors.

Smart Working Regulations

Smart working protocols remain largely unchanged, but employers are still required to notify the Ministry of Labor within five days of implementing remote work arrangements.

Hybrid Contracts

Lastly, the introduction of hybrid contracts allows companies to hire employees partially under employee status and partially as independent contractors, offering advantages such as benefits associated with a simplified tax regime, thereby enhancing worker flexibility and company adaptability.