Introduction
Resolution 789/2014
Comment


Introduction

In Brazil, 'temporary work' is defined as work provided by a temporary worker who is hired by a temporary work company (duly authorised by the Ministry of Labour) and enters into a service agreement for temporary work with the contracting company in order to replace an employee or attend to an extraordinary increase of work in the contracting company.

Law 6.019/1974 governs temporary employment and sets forth that term temporary employment contracts cannot exceed three months, except when otherwise authorised by the Ministry of Labour, according to the instructions established by the ministry.

Resolution 789/2014

The Ministry of Labour recently enacted Resolution 789/2014 and revoked Resolution 550/2010.

Resolution 789/2014 allows parties to enter into temporary employment contracts for terms longer than three months, permitting contracts to be extended for an additional six months. The same worker thus cannot exceed a total period of nine months of temporary work.

Temporary work and applications for authorisation to carry out temporary work – including extensions (up to the maximum total of nine months) – are permitted only if all of the requirements and conditions set forth in the Labour Law and in Resolution 789/2014 are complied with, under the penalty of nullity of the temporary employment contract.

Companies that do not comply with the conditions and requirements of temporary employment law and Resolution 789/2014 may face administrative tax deficiency notices from the Ministry of Labour as well as investigation by the Labour Prosecutor's Office. In addition, temporary workers may file labour claims against the contracting company or temporary work company in order to force the acknowledgement of a direct employment relationship between the worker and the contracting company, alleging that temporary employment law and Regulation 789/2014 were breached in order to distort the objective of the temporary employment law.

Comment

Labour court case law sets forth that an employee hired under a temporary employment contract is also entitled to the protection of provisional job security (in case of pregnancy, occupational accident or disease). This means that companies must not only comply with temporary employment law and Resolution 789/2014, but also monitor the way in which temporary workers are terminated in order to avoid any repercussions – not only with regard to risks, but also as regards costs for the contracting company that contracts services from a temporary work company.

For further information of this topic please contact Vilma Toshie Kutomi at Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados by telephone (+55 11 3147 7600), fax (+55 11 3147 7770) or email (vilma.kutomi@mattosfilho.com.br). The Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados website can be accessed at www.mattosfilho.com.br.