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Labour & Employment in Brazil

Contributors:

Rafael Bispo de Filippis

Amanda Costa Magno Lins

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Editor's note: The labour market in Brazil is rapidly changing and is prone to innovation. In the article below Mattos Filho's partner Cleber Venditti da Silva writes about the opportunities and the legal challenges around the dawn of the metaverse in the labour arena. Partner Rafael Bispo de Filippis and associate Amanda Costa Magno Lins co-write the piece. Mattos Filho is a Band 1 firm for labour and employment in Brazil.

The last few years have been marked by many changes in labour relationships in Brazil. These changes have started more significantly on the Labor Reform in 2017 and have been considerably accelerated in the pandemic years. This environment forced the need of the world’s readaptation in all spheres, including how employees and employers interact.

Globalization and technology, along with the necessity of setting forms of work in physical isolation imposed on society over the last two years, have accelerated the realization that remote work does not entail isolation. A process that would naturally occur in a few years ended up happening overnight and brought new horizons and even more revolutionary perspectives.

In the last few years, the labour market has been a pioneering area for technological advances. Human resources departments are using artificial intelligence in the recruiting processes. Very modern equipment and software are also being used to monitor employees in a wide range of different contexts and for different purposes.

On the litigation side, labour courts were pioneers in adopting virtual hearings and implementing fully electronic case records and litigation procedures. Some labour judges are also using electronic communication methods (such as e-mails or WhatsApp) to establish faster and easier communication with parties, witnesses, experts and other courts.

As being aligned with the most recent technological advances is part of the labour and employment universe, HR and legal professionals who deal with this area will not struggle to adapt to future tech challenges, although certain preparation and caution will be necessary to navigate this new and uncertain world. This is what is already taking place with the metaverse.

The metaverse is a type of internet materialization in virtual parallel realities where people interact with each other remotely and through avatars. In such reality, there are even sensory experiences where the individuals do not need to leave their homes in real life to be part of it. It is an increasingly closer reality that involves a set of technologies to integrate the real environment with the virtual one, as if the two of them were intrinsically integrated.

Companies that are inserted in the context of the metaverse will be able to experience new operational and process structures and refreshing people management facilities. They will be able to stand out in the job market and become attractive for hiring and retaining talent, especially the new generations of professionals, who seek greater flexibility in employment relationships. This is undisputed.

However, when we look to the legal side of it, this new environment brings several challenges in all areas of law and require managers and human resources professionals to think outside the box. Right now we can see people, companies, movable and immovable assets and property, brands and crypto assets coexisting in this parallel reality with no legal regulation so far.

When it comes to labour relations, some points of friction arise between the dynamics of the digital world and current legislation. The first difference takes place in territory. Unlike the real world in which each country, state and municipality has its own limits and legal framework, there are no geographical barriers in the metaverse. Consequently, the criteria that will be used to define applicable norms and laws is uncertain and many potential problems will inevitably arise when companies or individuals have disputes.

There are also important aspects related to the personality rights of employees who may be inserted in this virtual context, such as the protection of personal data and the rights to privacy and intimacy, as their information will be shared in the metaverse through their avatars.

The control of working hours in a virtual environment and the right to disconnect are other potential issues, as the workers will be able to access the metaverse pretty much from anywhere, at any time and any day. They will not need to use the company’s premises for such purpose.

The lack of a precise location may also cause issues related to union representation and classification, as one of the pieces currently provided by legislation to find the appropriate union for the workers is precisely the location where the services are provided.

On the other hand, it could be argued the the opportunity to optimize time and work in a digital dimension could potentially reduce the number of accidents at work, harassment cases and some types of occupational diseases. However, it is not clear this will be a consequence of the metaverse as harassers could fell much more comfortable in a digital environment than in in person interactions. Also, we may experience an increase of other diseases, mainly psychological and psychosocial.

The future in parallel digital realities is not so far away, especially considering that large technology players and other kind of companies have been investing very strongly to shorten these distances. It will not be a surprise if very soon work meetings and interactions or court hearings are held in the metaverse via avatars as if everyone were gathered in real environments. Screens and headphones should replace cars and public transportation. Business dress code should no longer be something for employees and employers to worry about. At least not in the real world, as avatars also need clothes to dress.

The avant-garde profile that, naturally, marks the labour relations in Brazil should be an important gateway for the metaverse. Although there are certain legal matters to be worried about, eventually we will have a favourable labour and employment environment for the metaverse to expand. For this, HR professionals will need to adapt their views on how to manage people within the organizations. Both the executive and legislative branches will have to move quickly to prepare proper legislation embracing this new reality. Courts must interpret the current laws with an holistic approach to accommodate the metaverse peculiarities. Finally, the legal advisors will need to be creative to help their clients navigate through this very fresh and uncertain environment without being deal breakers.