The Brazilian Congress has approved an important labor reform bill. The new law, Law 13.467, is a sweeping modernization of more than a hundred clauses in Brazil’s Consolidated Labor Law, many of which have been untouched since first introduced in 1943. Law 13.467 will take effect in November 2017.

Changes to Brazil’s Consolidated Labor Law ushered in by Law 13.467 include:

  • Alternatives for conflict resolution;
  • Greater leeway in collective bargaining agreements;
  • Additional forms of termination, such as by mutual agreement;
  • Flexibility in overtime, holiday, and telecommuting options;
  • Increased protections for pregnant women in the workplace; and
  • Expansion of outsourcing of core business.

The new labor law, approved on July 14, 2017, is a positive milestone in labor reform in Brazil, providing broad flexibility for employers and employees to negotiate labor conditions.

The Brazilian law firm, TozziniFreire, a member of the L&E Global alliance, has prepared a summary of the key aspects of the labor reform, available here.