Amendments to the grounds for dismissal and elimination of mandatory compensations
In a regulatory update of high importance for the employer sector, substantial amendments to the Federal Labour Law have been formalised:
Compensations
The most disruptive point of this update is the elimination of mandatory compensation for employees registered under specific schemes who previously enjoyed additional benefits by law. With this measure, the calculation of settlements is strictly adjusted to accrued benefits and constitutional indemnity, eliminating overcosts that lacked a justified basis in performance or seniority.
These measures strengthen the competitiveness of companies, allowing for more dynamic talent management; however, their success depends on a rigorous technical implementation. An example of the above is that internal regulations and current contracts must be audited to avoid conflicts with rights previously acquired by workers.
Greater certainty in contract rescission
The reform also clarifies the cases of legitimate dismissal, providing companies with a more robust framework for action; what is sought is:
- Reduce judicial discretion in the interpretation of serious misconduct.
- Expedite the validity of the rescission notice, decreasing the risk of lawsuits for unjustified dismissals derived from formal errors.
We remain at your entire disposal to analyse the particular impact of these reforms on your corporate structure.
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