In brief

On 10 November 2021, Decree 10,854 was published, addressing several infra-constitutional labor provisions on various topics and providing new labor regulations.

On 10 November 2021, Decree 10,854 was published, addressing several infra-constitutional labor provision on various topics, such as food vouchers, registration before the Workers Feed Program, and transportation vouchers, as well as bringing new labor regulations, such as the Permanent Program for the Consolidation, Simplification and De bureaucratization of Infra-Legal Labor Regulations, and the Electronic Labor Inspection Book (eLIT).

The federal government’s objective behind the issuance is to reduce the number of norms that regulate labor relations, which are notoriously extensive and even makes it difficult for employers to understand and comply.

One aspect that deserves special attention is with respect to the inspection actions that should no longer be based only on technical notes, guides and manuals from the Ministry of Labor. We believe that this new provision may reduce the number of assessments — or at least force better legal-based assessments.

Another important innovation addresses the Severance Fund Deposits for expatriate workers, allowing companies to deduct the respective contribution from amounts paid due to mandatory rights provided by the law of the place where services are provided. This new provision will reduce costs associated with the expatriation process. Other issues, such as working shift control, were also addressed, including provisions related to registry by exception.

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