Newsletter Employment | October 2020

DECREE 10,517 AUTHORIZES AN EXTENSION OF THE PERIOD FOR SALARY REDUCTIONS AND SUSPENSION OF THE EMPLOYMENT AGREEMENT

In view of the current crisis situation and ongoing measures, yesterday a new decree has been published to allow an extension of the period for salary reductions and suspension of the employment agreement.

Decree 10,517 provides that employment agreements may remain suspended and salaries reduced by 25%, 50% and 70% for up to 240 days in total, meaning that employers who have already implemented such measures may extend them for another 60 days provided that the period of public emergency continues until December 31st.

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CONTACTS:

Marcio Meira
Partner
T: +55 21 3262 3029
E: marcio.meira@cmalaw.com

Mauricio Tanabe
Partner
T: +55 21 3077 3521
E: mauricio.tanabe@cmalaw.com

Juliana Nunes
Associate
T: +55 11 3077 3558
E: juliana.nunes@cmalaw.com