Emergency program for the employment and income maintenance: law n.. 14.020 – july 6, 2020

On July 6, 2020, Law No. 14.020/2020 was officially published, object of the conversion of Provisional Measure No. 936/2020, which instituted the Emergency Program for the Employment and Income Maintenance.

This law, in summary, maintained the reduction periods of working hours and wage and suspension of the employment contract, as initially provided, that is, ninety (90) and sixty (60) days, respectively.

The legislation mentions that an act of the Executive Branch may extend the maximum period for reduction of working hours and wages and suspension of the employment contract, respecting the period of public calamity, and according to a regulation to be edited. However, to date, there is no act of the Executive Branch in this regard.

It was confirmed by Law No. 14.020/2020, that the reduction of working hours and wages and the suspension of the employment contract may also be instituted by collective bargaining agreement or convention, in addition to the individual agreement, and that the measures may be adopted partially or totally by sectors and departments in relation to job positions.

Law No. 14.020/2020 established that in the case of the pregnant employee, the provisional guarantee of employment resulting from the reduction of working hours and wages and suspension of the employment contract will be counted from the end of the guarantee period, which goes from the confirmation of the pregnancy up to five months after delivery.

Also, under the terms of the Law, the unfair dismissal of the employee with a disability will not be allowed during the state of public calamity.

The labour team of Costa Tavares Paes Advogados is available to provide any further information.

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