‎Brazil News

The new edition of the Emergency Employment and Income Maintenance Program registered 506,834 agreements closed in just over a week in force. Data show that 499,379 workers signed an agreement with 154,183 employers. The information is from the Ministry of Economy and covers the days of April 28 to May 6, until 15:30.

 

“It is a measure that has already been very successful, which has enabled workers and employers, over the past year, to promote a reduction in working hours and the suspension of employment contracts receiving the benefit from the Government. It was a very important measure to manage the economic crisis generated by the coronavirus ”, stated the Secretary of Labor, of the Ministry of Economy, Bruno Dalcolmo.

 

The program establishes the new Emergency Employment and Income Maintenance Benefit (BEm), paid by the Federal Government in the event of temporary suspension of the employment contract or proportional reduction of working hours and wages.

 

Agreements signed

The suspension of the employment contract is responsible for most of the agreements signed through the new program: 46.88%. In 6.37% of the agreements, workers had a 25% wage reduction; in 17.25%, a reduction of 50%; and at 29.51%, 70% of the salary.

 

According to the secretary, to join the Employment and Income Maintenance Program, the agreement between worker and employer must be submitted to the Special Secretariat for Social Security and Labor.

 

“It is necessary for the worker and the employer to reach an agreement directly and submit that individual agreement to our Special Secretariat for Social Security and Labor, notifying what kind of understanding was found, whether the workload was reduced, if the contract was suspended, and the deadline under which that agreement will be in force. After that, what we will do is, within 30 days, make the compensation, that is, the payment of this benefit directly into the worker's account ”, explained Dalcolmo.

 

By sector and by state

Of the number of agreements signed in the new Emergency Employment and Income Maintenance Program, 52.56% are from companies in the service sector; 25.84% of trade; 14.78% of the industry; and the rest, from other sectors.

 

The largest number of contracts was signed in the states of São Paulo (22.16%), Minas Gerais (10.61%) and Rio de Janeiro (10.57%).

 

New BEm

The Emergency Employment and Income Maintenance Program was relaunched by the Federal Government through a Provisional Measure published on April 27. Last year, the program saved about 10 million jobs.

 

In practice, it authorizes companies, when there is an agreement between employer and employee, to proportionally reduce the workday and salary or temporarily suspend the employee's employment contract for up to 120 days.

 

According to the program, the salary reduction can occur in 25%, 50% or 70%. The program covers employees from the private sector. It is up to the Government to supplement the worker's salary.

 

“If it is an alternative to contract suspension, the entire benefit will be deposited by the Government. If it is a 50% reduction in the worker's day, for example, the company continues to pay 50% of the worker's salary; and the Government will pay 50% of what the worker would be entitled to in case of unemployment insurance. But beware, in the case of suspension in large companies, of profit above R $ 4.8 million per year, the company is obliged to pay at least 30% by way of compensatory aid, even if it is in the contract suspension ”, he detailed the secretary.

 

Every worker who participates in the Emergency Program has a guaranteed job for the same time that the contract for suspension or reduction of wages is in force.