Published Law establishing change in the nomenclature and term of the Insurance-Employment Program

Published on June 26 in the Official Gazette, Law No. 13456/2017 amending the Employment Protection Program, established by Law 13189/2015 called for it Safe-Employment Program (PSE), and extend his term validity.

The purpose of the Insurance-Employment Program is to assist companies from all sectors in situations of economic and financial difficulty that enter into a collective bargaining agreement for the reduction of working hours and salary. Priority is given to companies that meet the quota of people with disabilities, micro-enterprises (ME) or small enterprises (EPP) and companies that have in their framework former prisoners.

Accession to the PSE can be made until December 31, 2017, observing the maximum period of permanence of twenty four (24) months, respecting the extinction of the program. Companies with CNPJ active for more than two years, in fiscal regularity, in a situation of economic and financial difficulty and that celebrate a specific collective agreement of work registered at the Ministry of Labor.

The law also provides for the constitution of a joint committee composed of representatives of the employer and employees covered by the program to monitor compliance with the collective agreement and the rules of the program, except for micro enterprises and small enterprises.

The program allows the reduction of up to 30% of the workday and remuneration of the employees involved, who are entitled to compensation of half of the reduced value provided they do not exceed the limit of 65% of the portion of unemployment insurance (using funds from the Workers' Assistance Fund - FAT), employee receives the total of 85% of his original salary.

For companies that participates in the PSE is prohibited the arbitrary dismissal, or without just cause during the term of the program and during the equivalent to a third of the period. Nor may it employ, during the period of PSE membership, employees to perform, in whole or in part, the same activities carried out by the workers covered by the program, except in cases of replacement or completion of apprentices.

Through its specialized team, MSW follows legislative, labor and social security changes and is ready to support its clients to be in compliance with the new legislation approved.

Leonardo Biar

Labor and Social Security Leader

[email protected]

Marcelo Sampaio

Tax Leader

[email protected]

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