Covid-19 T1E8. How is Brazil Law-Leading With Coronavirus? Shifting Saves.

A saga to rescue companies and jobs (people) in series, a legal soap opera about interpretation of the present and repercussions in the future.

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​Regarding the new coronavirus (Covid-19) we are supporting our clients.

1. Introduction

Due to Covid-19, Brazil adopted many measures to prevent an economic breakdown. Those measures have been made by "Provisional Measure" (Medida Provisória) a legal instrument for urgent matter that the president of Brazil may use to create instant law without consulting the congress.

​​Those laws are valid and has immediately enforcement for 90 days until the congress ratify, modify, deny or ignore which makes them fall, but supporting occurred facts, but it's subject to judiciary analysis, especially by the constitutional court of Brazil (Supremo Tribunal Federal).

​​2. Labor Law

As those new measures for Covid-19 were not exposed to any kind of judgment, especially labor courts, according to the CLT (Consolidation Labor Law).

The CLT has a major problem, a principle that says "in lack of law, the interpretation must favor the worker", as Brazil is an example of excess of law instruments and the government rules about everything, when has a doubt, judges condemns companies by creating interpretative obligations, even causing mass actions.

Sometimes those creations affect even equality between male and female workers, differences that should be supported by taxes, when needed. A sort of those creation of rules by interpretation has made woman less attractive than man as an contracted worker (seletista means that someone work by CLT regime), it´s not about predicable facts such as pregnancy and stability, but unpredictable ones that super exposes employers.

A female worker, once pregnant has stability for 14 months, 9 of pregnancy and 5 more, that is normal, if dismissed the company should pay all the stability period in indemnification that is normal.

​The problem is that the labor court forbids pregnancy tests, once it's made by the employer may cause "moral damages", but once a pregnant is dismissed even unknowing the circumstances it causes compensation without work, even if the employer calls her back to work she can just decline and receive the indemnification.

​That is an example unpredictable risk that may create instability in labor relations, so woman could be less attractive do employers, unfortunately, that is the main problem about those measures, as labor courts applies a sort of principles creating obligation.

​3. Miscellaneous

About health, the Brazilian authority ANVISA, may not regulate imported health treatment goods since previously authorized by other recognized ones.

Credit has been also released by low interest 3.5% a year to pay salaries, and tax obligations has been postponed.

​The government is supporting companies by paying at most 3 months salaries, depending on the amount, it could be paid integrally or 30% until some limit.

We are supporting about procedures that must be taken by companies to keep them safe, inform the best way to shift saves using governmental help.

​André Colares J.D. L.LM. in Tax Law