Brazil´s new president closes the Ministry of Labor

On January 1st, the new president-elect, Mr. Jair Bolsonaro, issued the Provisional Measure No. 870/2019 (“MP”), establishing a new organization of the government agencies and Ministries.

Among the changes brought by the MP, we highlight the end of the Ministry of Labor, with the consequent division of its agencies and attributions among other three Ministries.

Mr. Bolsonaro confirmed during recent press conferences that he is totally pro labor reform and the loosening of labor rights.

Matters related to the General Coordination of Immigration, Immigration Council and the General Coordination of Union Registration; and (iii) the National Immigration Council will be handled by the Ministry of Justice and Public Security.

For the Ministry of Citizenship were transferred (i) the Under-Secretariat for Solidarity Economy; and (ii) the National Council for Solidarity Economy.

The (i) National Labor Council; (ii) FGTS Curator Council; o (iii) Deliberative Council of the Fund for Workers’ Assistance; and (iv) the Social Security Resources Council are now responsibility of the Ministry of Economy, which will now have the Special Secretariat for Social Security and Labor and the Special Secretariat for Productivity, Employment and Competitiveness.

That being said, the Ministry of Economy will be responsible for most of the issues related to work, employment and social security, being responsible for policies and guidelines for the generation of employment and income and worker support, policies and guidelines for the modernization of labor relations, and wage policy. In addition, it will also be responsible for supervising the work and applying penalties foreseen in legal and collective norms, occupational safety and health, and professional regulation.

In practice, labor inspection will be conducted by the Ministry of Economy, which will also be responsible for assessing administrative appeals against infraction notices that may be drawn up.

The closing of the Ministry of Labor was strongly rejected by the Labor Judges Association and Public Prosecutors, who sustain that the measure violates the Brazilian Constitution.