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2020 Vision: what’s on the horizon for employment law in Brazil?

Written by
Veirano Advogados, one of the leading and most renowned Brazilian business and employment law firms.
This article sets out some of the key topics that are likely to set the agenda for employers in Brazil in 2020.

Challenges to the 2017 reform of labour law

The Supreme Court will adjudicate several cases addressing possible constitutional issues arising from the 2017 Labor Reform.

Because the Federal Constitution guarantees several employment rights and provides for different principles of law, some controversy arose from a number of the changes introduced by the reform. Among these, intermittent work, immaterial damages (moral damages) and monetary restitution are the most important issues. Intermittent work is a new form of engagement on-demand. It has been criticised on the basis that it would involve precarious social and employment rights for workers. The reform has pre-set parameters for calculating immaterial damages according to the seriousness of the offence and the employee’s position. Criticism of this measure state that this kind of standardisation would be against the rules of civil liability for damages. The reform stipulates an official inflation rate different from the one that courts use, meaning that it affects the assessment of labour liability for litigation.

Regional political tensions impacting Mercosur

Political antagonism between the Brazilian and Argentinian presidents might affect the capacity to improve business under the Mercosur trade agreement and the negotiations between the group and EU. After years of the Labour Party, PT, being in power, Brazil has a conservative right-wing president, while Argentina has brought left-wing Peronists back to Casa Rosada.

Data privacy

The deadline to adjust and comply with the Brazilian Data Privacy Law will expire in August 2020. As of August, all organisations and businesses must adopt security patterns and any noncompliant collection and processing of personal data may attract sanctions.

José Carlos Wahle
Partner - Brazil
Veirano Advogados