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Agreement To Make A Reduction

For each pre-tax pay settlement period, the employer makes contributions equal to the amount of a member`s compensation compared to that period as part of its compensation reduction contract. Businesses, who have a gross turnover of BRL 4.8 million or less in 2019: can negotiate directly the suspension of the contract or the reduction of wages (by 25%, 50% or 70%). with their workers who earn up to three minimum wages (BRL 3,135) or more and who receive a salary equal to or greater than 12,202.12 BRL. In a recent interview, the Minister of Labour of the Ministry of Economy indicated that there were studies to extend the reduction in wages and working time by an additional thirty days and to suspend employment contracts for an additional 60 days. If confirmed, this means that both measures may have a maximum delay of 120 days, including the initial periods of MP 936. Also covered by the Member, domestic workers, whose contracts have been suspended and hours and wages reduced, find themselves in the same situation. The salary reduction agreement means an agreement between the member and the employer that reduces the member`s pay or forgoes an increase in compensation of an amount that the employer must pay into the member`s account. Because the time frames for the first suspended and abbreviated contracts have expired or are approaching the ceiling previously set out in the interim measure, the transformation into law may give businesses more time. Currently, more than 1.3 million employers have joined the program, which covers approximately 9 million employment contracts. Indeed, it is customary for contractor agreements to determine the number of hours worked per week and sometimes the special rolling tables under which the schedules are made. Individual agreements to reduce working hours and wages or to temporarily suspend the employment contract concluded under the law are communicated by the employers of the relevant trade union within ten calendar days from the day of signing.

Due to delays in processing and sanctions, suspended and reduced agreements have reached their maximum deadline. The MEMBER set up the emergency programme for the maintenance of employment and income, which allowed for a reduction in wages and working time as well as the suspension of agreements in order to allow employment to continue and to minimise the impact of Covid-19 on the economic and productive sector. This form includes, but is not limited to, an agreement to reduce compensation, a designation of the beneficiary and an investment direction pursuant to Section 6.1. By filling out and submitting such a form, the authorized worker authorizes the employer to make the applicable wage deductions on the remuneration which, on the first applicable pay day, are made simultaneously with or after the effective date of the election of the worker authorized to participate in the allowance. The measure, which came into force at the beginning of April, allowed measures to be taken for up to ninety (90) days, for agreements to reduce wages and working hours and up to sixty (60) days of contract suspension.


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