South America: Employment and HR

Brazil's Chamber of Deputies has approved a constitutional amendment to reduce the maximum working week from 44 to 40 hours and abolish the traditional '6×1' work schedule. However, the approved text contains problematic wording that may increase costs for all employers beyond what was intended, while also affecting collective bargaining arrangements in ways that could undermine recent labour market reforms.

Puerto Rico's Department of Labor and Human Resources launched Desempleo Digital on September 1, 2026, fundamentally transforming how employers interact with the agency for unemployment insurance and temporary non-occupational disability insurance services. The new digital platform introduces significant changes to account access, filing procedures, payment processing, and third-party representative management that require immediate attention from employers and their service providers.

Mexico's Social Security Institute (IMSS) is transitioning to a fully digital Employer Identification Card system, eliminating physical cards in favor of electronic verification through the IMSS Mailbox. Companies must ensure their digital infrastructure and authorized personnel information are current to maintain compliance with the new requirements taking effect in September 2026.

The Puerto Rico Supreme Court recently issued a decision reaffirming the importance of just cause for employment terminations in Puerto Rico.

Collective dismissal, particularly the involvement of trade unions in the process, has long been controversial in Brazil. Following recent labour reforms and court decisions, the Supreme Court is set to rule again...

Justified dismissal is one of the most delicate and complex figures within the field of labor law. This is the termination of the employment relationship by the employer, based on legitimate causes that must be clearly established in the legislation and in the employment contract.

The Puerto Rico Supreme Court has issued its first interpretation of Act 90, the island's workplace harassment prevention law, addressing what happens when employers fail to establish required internal complaint procedures. The decision clarifies whether employees can bypass administrative steps when their employer lacks a compliant harassment protocol, and establishes critical procedural requirements that affect both workers and businesses operating in Puerto Rico.

Building a workplace where every employee feels safe, valued and respected is key to a successful and resilient business, and LGBTQIA+ inclusion is an important part of that. This video addresses the most common questions that employers have on the likes of names, pronouns and workplace policies, and discusses practical approaches to creating a more inclusive workplace in an area where legal approaches continue to evolve.

Tras la aprobación de la Ley 513 de 2026, el Órgano Ejecutivo emitió el Decreto Ejecutivo No. 1 de 31 de agosto de 2026, que reglamenta dicha ley con la finalidad de mejorar su cumplimiento y alcanzar sus objetivos.

La promulgación de la Ley 526 de 2026 en Panamá introduce obligaciones estrictas para las empresas que forman parte de grupos multinacionales y perciben rentas pasivas de fuente extranjera. Con la entrada en vigor fijada para el periodo fiscal 2027, las organizaciones rezagadas se exponen a una tarifa impositiva del 15% sobre su renta neta gravable de fuente externa si no logran demostrar una presencia operativa real dentro del territorio nacional. Ante este panorama normativo, delegar la administración contable y laboral en proveedores locales calificados deja de ser una alternativa de eficiencia para convertirse en un pilar de cumplimiento legal.

The enactment of Law 526 of 2026 in Panama introduces strict obligations for companies that are part of multinational groups and earn passive income from foreign sources. With entry into force set for fiscal year 2027, organizations that fall behind face a 15% tax rate on their net taxable foreign-source income if they fail to demonstrate a genuine operational presence within national territory. Given this regulatory landscape, delegating accounting and labor administration to qualified local providers is no longer merely an efficiency option, it has become a pillar of legal compliance.

Companies registered in Mexico's REPSE (Registry of Specialized Service Providers) face critical compliance deadlines for the first four-month period of 2026. Understanding the mandatory reporting requirements to IMSS and INFONAVIT, along with the potential consequences of non-compliance, is essential for maintaining valid registration and avoiding tax exposure.