MP #927/2020 – Federal Measures to Stand Up to the State of Calamity imposed by the New Coronavirus (COVID-19

On March 22, 2020, was published in the Official Gazette the Provisional Measure (MP) #927/2020 was published, which regulates the labor measures to deal with public calamity and the public health emergency imposed by the outbreak of the new Coronavirus (COVID-19) .


We summarize below  the rules presented by the Federal Government for maintaining job positions:


1. Home Office: Implementation with a minimum prior notice of 48 hours, without changing the individual employment agreement. It is important to mention that home office is not compatible with working period control, thus there is no overtime payment, unless defined otherwise in an individual or collective agreement;


2. Anticipation of Individual Vacation: Formal notification in writing or by electronic means is mandatory, preferably at least 48 hours in advance. The period of enjoyment may not be less than 5 calendar days. Vacation settlement can be made up to the 5th business day after its beginning. There is a to possibility of anticipating unfulfilled acquisition periods. In addition, the parties may agree in written to anticipate future vacation periods. The settlement of the additional constitutional third (1/3) can be liquidated together with the 13th salary;


3. Collective Vacation: Formal notification in writing or by electronic means is mandatory, preferably at least 48 hours in advance. The concession may be made privately, without the intervention of the Union and / or the Ministry of Labor;


4. Anticipation of Holidays: employers might anticipate the enjoyment of holidays (federal, state, district and municipal non-religious), with a prior notice of 48 hours;


5. Working Period Offset (Bank of Hours: it is allowed the interruption of company’s activities with a constitution of workday compensation, through bank of hour, in favor of the employer or the employee, for compensation within the following 18 months counted as from the date of closure of the state of public calamity;


6. Periodic Examinations: The obligation of carrying out the occupational, clinical and complementary medical examinations is suspended, which must be carried out within 60 days, counting from the date of closure of the state of public calamity. The dismissal examination may be waived if the most recent occupational medical examination was performed less than 180 days ago. 


7. Mandatory Trainings: The obligation to conduct periodic and occasional training for current employees is suspended, as provided for in regulatory norms for health and safety at work, which must be carried out within 90 days, counting from the closing date of the state of public calamity. Training can be carried out in the distance learning modality, to ensure that activities are carried out safely. The CIPAs may be maintained until the end of the state of public calamity and the electoral processes in progress may be suspended.


8. Employment Contract Suspension: By individual agreement, without the intervention of the Union and / or the Ministry of Labor, the employment contract may be suspended for up to 4 months, for the participation of the current employee or in-person professional qualification program offered by the employer, directly or through of entities responsible for qualification, with duration equivalent to contractual suspension. A will be registered in a physical or electronic work card. The employer may maintain the benefits and/or grant monthly, discretionary, non-salary compensatory aid during the period of contractual suspension;


9. Deferral of the Guarantee Fund for Time of Service (FGTS): The FGTS related to the competencies of March, April and May 2020, expiring in April, May and June 2020, respectively, is suspended. The settlement can be made at 07/07/2020 in up to 6 monthly and successive installment.


10. Working Period Extension: By individual written agreement, health establishments will be able to take a 12x36 day, even for unhealthy activities.


11. Annual Allowance: the payment of the annual social security allowance, due to those during this year received sickness allowance, accident allowance or retirement benefit, death pension or imprisonment aid, will be made in two installments, exceptionally, as follows: i) the first installment will correspond to 50% of the benefit amount due in April and will be paid together with the benefits of this competence; and ii.) the second installment will correspond to the difference between the total amount of the annual allowance and the amount of the anticipated installment and will be paid together with the benefits of the May.


The aforementioned possibilities needs to be discussed and agreed in advance with the impacted employees.


Considering the urgency of more information regarding the impacts caused by Coronavirus on business routines, RSM is available to help solve any doubts for the adoption of best practices, duly based on current legislation.

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