Deputy Bia Kicis (PL-DF), an ally of President Jair Bolsonaro (PL), resurrected in her opinion on an MP (Provisional Measure) reported by her as part of a mini-labor reform of government interest that has already been overturned twice by Congress.
The rules introduced by her create a program that allows companies to hire young employees or employees over 50 years old, paying less labor charges.
The text cuts in half the fine of 40% of the FGTS (Fundo de Garantia do Tempo de Serviço) that the employer pays to the worker dismissed without just cause. ​The fine is calculated on the amount received over the course of the contract.
Companies would also be exempt from social security contributions levied on the payroll of those hired by the program when they are part of a family that receives AuxÃlio Brasil, a program that replaced Bolsa FamÃlia.
Kicis was chosen as rapporteur for the MP sent by the government at the end of January. The text needs to pass through the House and Senate by June 1st so that it does not lose its validity. According to the deputy, the intention is to vote for the MP this week.
The rules introduced by her came from an amendment by deputy Christino Aureo (PP-RJ). He had already tried to implement the changes last year, through an MP (the 1,045) reported by him that recreated the emergency program to cut working hours and wages for workers in the private sector.
In turn, Aureo had added provisions of MP 905 to the text, which created the Green and Yellow Card — the government’s first attempt to make labor rules more flexible. The text lost validity in Congress for lack of political support.
The second attempt (MP 1045, reported by Aureo) passed the Chamber but was defeated in the Senate amid fears that deputies would recreate labor changes that would eventually be withdrawn by senators.
Kicis rescued the program provided for in the previous attempt, similar to the Green and Yellow Card, which had been created by the Chamber. With this, he intends to recreate, with changes, the Priore (first opportunity and job reinsertion program).
She kept the program’s initial audience — young people between the ages of 18 and 29 and people aged 50 and over without formal employment for more than two years. In addition, it includes people with disabilities.
The report predicts that FGTS deposits will be 8% of salary, the same amount in force today. In the previous attempt, the ranges ranged from 2% to 6% (depending on the size of the company).
The Priore inserted in the MP reported by Kicis provides for fixed-term contracts, for up to two years. According to the text, the contract will automatically be converted into an “indefinite term” when it exceeds this period.
According to the text, the remuneration in this contract cannot exceed two minimum wages (R$ 2,424). The employee will be entitled to a remuneration, 13th proportional salary and a third of vacation.
The MP provides for the possibility of a new contract being signed by Priore if the first one is less than 180 days. The report prohibits the hiring of domestic workers in the program.
Kicis’ opinion also creates the Productive Training Scholarship, financed with resources from the FAT (Worker Support Fund) and aimed at qualifying workers hired by Priore.
The scholarship will be paid to the entity responsible for the course and must correspond to the market value of the training offered, with a ceiling of 20% of the minimum wage multiplied by the number of months the employee stayed at Priore.
In the report, Kicis argues that the program can enhance “the chances of productive inclusion of young people between 18 and 29 years of professional reintegration of people over 50 years old and also of inclusion or reintegration of people with disabilities.”
New rule for unemployment insurance
The deputy also included a chapter that amends unemployment insurance. The text provides that the employer must inform about the beginning of the notice of the worker dismissed without just cause within two days after the beginning of the period.
If the worker gets a new job during the notice period, he will receive 50% of a portion of the unemployment insurance to which he would be entitled. If admission to the new job takes place before receiving the second installment, he will be entitled to 30% of the amount.
Under the current rules, whoever is hired loses the right to unemployment insurance.
​The provisions dealing with Priore and unemployment insurance come into force 120 days after the publication of the law.
In the opinion of Jorge Matsumoto, labor partner at Bichara Advogados, the chances of the mini-labor reform going to sanction are remote. “It has already been a matter of discussion and denial on the part of the Senate. But, in my view, the attempt is valid, because the text tries to improve employability in the country.”
Rodrigo Giostri, labor partner at Sfera Law, explains that the change can help resolve episodes that occurred in the labor market. “Some people who have been laid off and who have found a new job asked not to be registered in order to enjoy unemployment insurance and receive a salary on the side,” he says.
The MP sent by the government creates the national program of voluntary civil service, which seeks to encourage mayors to offer activities of public interest without an employment relationship.
The original program, which lasted until the end of the year, was aimed at young people aged between 18 and 29 and people over 50 without a job for more than two years. The National Program for the Provision of Voluntary Civil Service would be offered by municipalities through a simplified public selection process.
In the explanatory statement, the then Minister of Labor and Welfare, Onyx Lorenzoni (PL-RS), states that the objective is to reduce the social impacts on the labor market caused by Covid-19.
The text provided for a maximum working day of 22 hours per week, limited to 8 hours per day, for program activities. Beneficiaries would be assured of training or professional qualification courses, with a minimum workload of 12 hours each month in the program.
Professional qualification would be provided by S System entities, such as Senai, Senac and Sebrae. The municipality would determine the offer of vacancies for activities of public interest, the activities performed by the beneficiaries and the value of the scholarship — equivalent to the minimum wage per hour.
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