Mariana Saroa de Souza
Lawyer at Marcos Martins Advogados
On November 12, 2019, Provisional Measure No. 905/2019 was instituted with the so-called “Green and Yellow Program”, which has great importance and changes for the labor sphere.
The measure provides for the implementation and encouragement of new jobs for people between the ages of eighteen and twenty-nine, for the purposes of registering their first job.
The benefits brought by the new modality affect both parties, employee and employer, since, for example, it exempts companies from payroll taxes, amends current legislation to authorize work on Sundays and public holidays, authorizes the electronic storage of documents with labor duties and obligations, and also exempts companies from paying the social security contribution on payroll, education salary and social contribution for members of the “S” System.
In addition, the social contribution owed by employers, in the event of dismissal of an employee without just cause, at the rate of ten percent on the amount of all FGTS deposits due, is abolished.
According to the measure, employees will receive a monthly base salary of up to one and a half times the national minimum wage, and will receive priority in actions brought by the professional qualification company. In addition, workers hired in this way will have their constitutional rights guaranteed, such as the 13th salary and vacation pay.
However, there is another change, regarding the payment of vacations and the 13th, which may be different, being made monthly together with the remuneration, stressing that this rule must be agreed between the parties.
In addition, in order to finance the professional qualification and rehabilitation service provided by the National Social Security Institute (INSS), the Professional Physical Habilitation and Rehabilitation, Prevention and Reduction of Accidents at Work Program was created.
It is important to note that employment under this program is for a fixed term, up to a maximum of twenty-four months, at the employer’s discretion. After this period, the contract will automatically be converted into an indefinite term, where all the benefits of the Measure will be removed.
The Measure will come into force from December 1, 2020 until December 31, 2022, and provides for the limitation of hiring employees in this way, limiting it to 20% of the company’s total workforce.
