MP 936/2020 was published by the federal government, which became known as Provisional Measure Labor, avoiding a high number of layoffs due to the pandemic of the new coronavirus.
So that layoffs do not happen, it allows companies to cut up to 70% in the payments of formal employees and release unemployment insurance to cover this cut. This measure is optional for companies, but according to data from the Ministry of Economy, it should reach 24 million workers.
The measure is avoiding high number of unemployment
The measures have a deadline to be adopted, for example to reduce working hours and also salary, the maximum is 90 days and in the suspension of the contract of 60 days. As they are provisional measures, they fit the decree, however it will take 120 days for them to be approved by Congress.
The text has a basis of reducing the working day by three percentages, which may be 25%, 50% or 70%, in the case of suspension of the contract within a period of 60 days.
Thus, the labor relations in the measure, seeks to maintain the “income” and not the “salary” of the workers. The two main points being to reduce the workday and the suspension of the worker's contract.
Entrepreneurs see it as a way to collective or individual wage agreements. The State fights against what could happen to the economy, if unemployment increases, the measure is to avoid an even worse collapse.
Unemployment insurance released in the amendment of the provisional measure, to benefit the employer, in the salary cut. As well as avoiding dismissal, so the value of the benefit ranges from R$ 1,280.00 to R$ 1,813.00.
If the contract is terminated, the insurance will be the full amount paid. In case the salary cut reaches 70%, the value will be in percentage for the unemployment benefit. The percentage of 30% can be reduced on net income for Income Tax.
