Paloma da Silva Aguiar
Lawyer at Marcos Martins Advogados
In the face of the pandemic caused by the Coronavirus (Covid-19), the Emergency Program for Maintaining Employment and Income was created by Provisional Measure No. 936 of 2020, converted into Law No. 14,020/2020, with the aim of preserving workers’ jobs and income in the face of the negative impact that the pandemic has had on the world economy, which has continued to this day.
One of the possibilities in the Provisional Measure, the reduction of working hours and suspension of employment contracts, was initially planned to be valid for no more than 90 days and 60 days, respectively, and was extended on two other occasions, both reaching a limit of 180 days.
However, in view of the continued impact on the national economy, the Executive once again deemed it necessary to extend the period of application of these measures for a further 60 days, i.e. until December 31, 2020, the date on which the state of public calamity decreed on March 20, 2020 is due to expire, making a total of 240 days.
As a result, companies will be able to extend contracts already signed until that date to reduce working hours and wages and suspend employment contracts or, if they use this prerogative, to sign contracts with their employees, under the terms of the law.
Decree No. 10,517/2020 was signed by President Jair Bolsonaro and published in the Federal Official Gazette on October 14, 2020, effective from the date of publication.
