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What has changed at PLR in 2020

Law 14.020/20, in addition to incorporating MP 936/20 (which deals with the possibility of suspension of the employment contract and wage reduction during the covid-19 pandemic) also brought rules that alter some important points of Law No. 10,101/2000, which regulates the participation of employees in the profits or results of companies (PLR). Below are the main changes:

  • The possibility for non-profit entities to institute PLR programs is open if they are based on results targets, not profits (art. 2, par. 3a).
  • PLR agreements may be established by means of collective agreement and employee commission simultaneously (art. 2, par. 5th, I). Before, it was one or the other.
  • Companies may have multiple PLR Agreements (art. 2, par. 5, II).
  • PLR programs may contain exclusively individual goals (art. 2, para. 6)
  • The rules laid down in an instrument signed before payment are considered in advance – and not before the beginning of the period for the calculation of the targets set (Art. 2, para. 6).
  • PLR can still be paid only up to twice a year, with a minimum interval of one quarter. However, the new law determines that failure to comply with this rule invalidates only (i) installments that exceed the second payment of the year and/or (ii) payments made to the same employee, in a period of less than one quarter (art. 2, para. 8).

Full text of Law No. 10.101/2000 available here.


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