One of the main measures to contain the social impacts caused by the Covid-19 pandemic was the edition of Provisional Measure (MP) No. 936 in April 2020, converted into Law No. 14,020 in July 2020, which created the Emergency Program for The Maintenance of Employment and Income and instituted labor measures such as the agreements for reduction of working hours/salary and suspension of contract.
The validity of these labor measures was conditional on the state of public calamity recognized by Legislative Decree No. 6 of March 2020.
Whereas that decree expired on 31/12/2020, one of the most recurrent doubts of employers concerns the effects of the end of the state of public calamity on the ongoing labour agreements.
Although on 12/30/2020, Minister Ricardo Lewandowski of the Supreme Court has granted injunctive the extension of the state of calamity, the decision only affects sanitary measures, such as isolation, quarantine, wearing masks, vaccination, epidemiological investigation, etc.
Therefore, all labor agreements made on the basis of Law No. 14,020 (former MP No. 936) ceased to be valid from 01/01/2021 which means the reestablishment of activities, working hours and salaries practiced before the reduction and suspension agreements.
However, the provisional guarantee remains in the employment of the employee who received the Emergency Benefit of Preservation of Employment and Income due to the reduction of working hours and salary or temporary suspension of the employment contract, for a period equivalent to that agreed.
Source: Law No. 14,020 of July 6, 2020; Legislative Decree No. 6, 2020 and decision issued by the Supreme Court as a precautionary measure in the file of Direct Action Of Unconstitutionality No. 6.625 /DF.