REDUCTION OF WAGES AND WORKING HOURS AND SUSPENSION OF LABOR CONTRACTS
PROVISIONAL MEASURE NO. 936, OF APRIL 1, 2020
Provisional Measure 936/2020 creates the Emergency Program for the Maintenance of Employment and Income and provides for complementary labor measures to confront the state of public calamity and public health emergency resulting from the coronavirus(COVID-19).
The MP creates the Emergency Benefit for Preservation of Employment and Income
(“Benefit”), to be paid by the Government in the following cases: (i) proportional reduction of working hours and wages; and (ii) the temporary suspension of the employment contract.
The Labor Law team at DDSA Advogados has prepared a complete table with all the possibilities of receiving the benefit.
We clarify that the content above is not exhaustive and does not represent or replace a specific recommendation from an analysis of the case. DDSA Advogados will be available to guide its clients on the main legal measures to face the pandemic and its impacts on labor relations and on the applicability of the Provisional Measure 936/2020.
The amount of the Benefit will be calculated based on the monthly amount of unemployment insurance to which the employee would be entitled.