House approves suspension of labor settlement payments until December this year

Monique Vieira Lessa
Lawyer at Marcos Martins Advogados

On June 17, 2020, the Chamber of Deputies approved an amendment to Provisional Measure 927/2020 that allows the suspension of the payment of labor agreements, both judicial and extrajudicial, by companies that have had their activities totally or partially paralyzed by the government during the COVID-19 pandemic.

The proposal by Congresswoman Soraya Santos (PL-RJ), which will now be analyzed by the Senate, will be valid for as long as the state of public calamity in the country lasts, which so far runs until December 31.

If approved, the change could affect those who have made an out-of-court agreement to receive the amounts owed by the company in installments, those who have negotiated the value of the lawsuit in court in order to receive it in installments, those who have been dismissed and have not yet received the full amount to which they are entitled and those who have joined the Voluntary Dismissal Plan and have not yet received all the amounts.

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