Provisional Measure 905/2019, published on 11/11/2019, also known as Green and Yellow Agreement [Contrato Verde e Amarelo] MP, the priority of which is the generation of jobs to young people, since it is the larger portion of the Brazilian population that is unemployed, was recently updated by the Federal Senate and its term of effectiveness was postponed to 4/20/2020. The main topics for change presented by the Reporting Senator were:
Green and Yellow Agreement – Extension
The hiring under the green and yellow modality will also be extended to people aged 55 and over have not been formally employed for more than 12 months.
Change of the percentage of workers under the Green and Yellow Agreement modality from 20% to 25% of the total of the company’s employees.
Work of Bank Employee on Saturdays, Sundays and Holidays
The permanent work on Saturdays, Sundays and holidays in activities involved in the process of bank automation; call center; telemarketing; Customer Service (SAC) and ombudsman; services through digital channels, including the support to these channels, technology areas, property safety and management and banking activities in areas of differentiated operation, such as fairs, exhibitions, shopping centers, airports and bus, train and subway terminal.
Adjustment of Labor Credits
The adjustment of the credits resulting from judicial adverse judgment will be made by the variation of IPCA-E [Special Extended National Consumer Price Index] or by any index that may replace it, calculated by IBGE [Brazilian Geography and Statistics Institute], added by default interest equal to the additional remuneration of the savings deposits.
Profit and Results Sharing
The negotiations for the purpose of the company’s profit and results sharing with employees may be made through a joint commission chosen by the parties. However, once the joint commission is constituted, it will be necessary to notify in writing the union so that it appoints its representative within seven (7) days, after which the commission may start and conclude the negotiations.
MP is now being examined both by the Chamber of Deputies and the Federal Senate, though it is being processed as urgent in the two houses.
The approval of the final text by the Congress is awaited by the society and especially by the businessmen, so that they may adopt and implement the rules that will contribute to the generation of jobs and economic growth and provide legal certainty to the employment relationship.
The current moment requires caution and legal advice to those that are ready to adopt the rules established by MP, though it is expected that it will be converted into law amid the conflict established between the Branches.
