The Labor Reform (Law 13,467) will come into effect on November 11, 2017. It changes over one hundred provisions of the Brazilian Labor Code by introducing new labor procedural measures and alternatives for conflict resolution, reinforcing the validity of agreements negotiated with unions, simplifying some labor procedures and providing more flexibility for employers and employees to negotiate labor conditions. The Reform aims at creating a positive environment for labor relations in Brazil and reducing claims and labor liability. (click here to read more about the main points of the Brazilian Labor Reform).
Over the past months, we have been discussing with clients, colleagues and institutions the changes introduced by the Labor Reform, particularly its opportunities and challenges. As any new legal framework, some aspects will be clarified through court decisions and others will be subject to further regulation issued by the Ministry of Labor and other Federal Government agencies. In any event, the parties – especially companies – are expected to take the lead in implementing the Labor Reform by balancing its many changes with the best practices in both business and people management.
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