The long-awaited Provisional Measure 936 was published April 1, 2020, instituting the Emergency Program of Employment and Income Maintenance, with application during the state of public calamity.

The measure presents two alternatives for the calamity period (i) suspension of the employment contract and (ii) proportional reduction of working hours and wage, both with subsidy provided by the Government to the employees. The government subsidy will depend on the option and will be based on the amount of the unemployment insurance benefit for each employee. Details on each of these possibilities will be approached below.

The PM clarifies that the purpose of the program is to preserve employment and income, to ensure the continuity of work and business activities, and to reduce the social impact resulting from the consequences of the state of public calamity and public health emergency. This should be the action and negotiation guidance of the companies.

There is a great discussion on the topic and for this reason we call attention to alert that the measures proposed by PM 936/2020 should be thought out in a structured and strategic way, so that it can be an effective remedy that meets the needs of the company, especially considering the costs resulting from the eventual dismissal of employees in the course of temporary employment stability.

To update you, there is already a Direct Action of Unconstitutionality on the topic, proposed by Rede Party (File no. 0089460-11.2020.1.00.0000) and distributed to Minister Lewandowski.

We present below the main aspects and a brief list of questions and answers that we consider most relevant at this moment.

THE PROPORTIONAL REDUCTION OF WORKING HOURS AND WAGE (ARTICLE 7 of the PM)

Term of up to 90 days;

Preservation of the amount of the work hourly wage;

Agreement by individual contract or collective bargaining (*);

Communication to the employee at least 2 calendar days in advance;

Proportional reduction of working hours and wage. Therefore, only the reduction of wages, without the respective reduction of working hours, is prohibited in this modality;

Benefit Value will be based on the monthly amount of unemployment insurance in the following proportions:

a)    Reduction less than 25%: Without benefit

b)    Reduction between 25% and 50%: 25% benefit on the calculation basis;

c)    Reduction between 50% and 70%: 50% benefit on the calculation basis; and

d)    Reduction higher than 70%: 70% benefit on the calculation basis.

TEMPORARY SUSPENSION OF THE EMPLOYMENT CONTRACT (ARTICLE 8 of the PM)

Term of up to 60 days;

Agreement by individual contract or collective bargaining (*);

Communication to the employee at least 2 calendar days in advance; and;

Benefit value will depend on the Companys gross annual revenue of 2019, as follows:

a)    Companies with gross revenue less than BRL 4.8 MM: 100% of the unemployment insurance amount to which the employee would be entitled to, or

b)    Companies with gross revenue higher than BRL 4.8 MM: 70% of the unemployment insurance amount + Monthly compensatory aid paid by the employer in the amount of 30% of the employees wage.

STRUCTURE OF THE NEGOTIATION (ARTICLES 7 AND 8 OF THE PM)

Employees with a wage equal to or less than BRL 3,135.00: Individual agreement or collective bargaining.

Employee with salary starting at BRL 3,135.00 and up to twice the maximum limit of the benefits under the General Regime of Social Security (BRL 12,202.12), or higher than the maximum limit, without a higher education diploma: Collective Bargaining, with the exception of a 25% reduction that may occur by individual agreement.

Employees holding a higher education diploma and who receive a monthly wage equal to or higher than twice the maximum limit of the benefits under the General Regime of Social Security. Individual agreement or collective bargaining.


Read the QUESTIONS AND ANSWERS at: http://www.azevedosette.com.br/news/en/pm-no-936-measure-allows-the-suspension-of-the-employment-contract-and-the-reduction-of-working-hours-and-wage-with-subsidies-by-the-federal-government-but-requires-caution/5687