Since the declaration of the state of public calamity on March 20, the Brazilian Government has taken several measures to contain the fast spread of the novel coronavirus and to ease the negative impacts of the novel coronavirus outbreak on the domestic economy.
The most anticipated measure is the stimulus aid package, which has yet to be approved by the Congress. However, other several critical measures have been taken by the Brazilian Government, including the authorization to modify employment agreements during the state of public calamity.
On April 1st, President Jair Bolsonaro enacted the Presidential Provisional Measure no. 936/2020, which provides the Employment Maintenance Emergency Plan. In an effort to preserve jobs, workers’ income and the country’s economic activity, the Emergency Plan allows for temporary suspension of the employment contracts or reduction of working hours and workers’ salaries during the state of public calamity.
A client alert with a summary of the main provisions of the Presidential Provisional Measure no. 936/2020 is included here.