Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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Brazilian Data Privacy Law (LGPD) May Become Effective in Just a Few Days

New Legislation Enacted

Author: Renata Neeser, Shareholder – Littler United States

The Brazilian government and congress are not making life easier for companies. The LGPD, the Brazilian data privacy law enacted on August 14, 2018, was supposed to become effective on August 14, 2020. However, the National Data Protection Agency (ANPD) has failed to issue regulations or guidelines, leaving companies wondering how to implement data privacy protocols. Although the government issued a provisional measure (MP # 959) postponing the effective date of the law, Congress only extended the effective date of the administrative sanctions. As such, if Congress conclusively rejects MP # 959, which seems to be the case, the LGPD could become effective this August. Employers should intensify their efforts to become LGPD compliant to avoid unpleasant surprises. Although penalties under the LGPD likely will not be in effect for another year, other laws and government agencies may still impose other penalties for violation of privacy.

Provisional Measure # 905 is Revoked Negatively Impacting Employers

New Legislation Enacted

Author: Renata Neeser, Shareholder – Littler United States

On April 20, 2020, Provisional Measure # 955 revoked Provisional Measure # 905, the latter of which created flexibility to enter into less expensive types of employment relationships and encouraged the hiring of young people. Provision Measure # 905 also eased the rules on work on Sundays and profit sharing, and clarified what constituted “discretionary” bonus for tax purposes and whether meal benefits should be treated as wages. In revoking this measure, Brazil’s president stated that a new measure would substitute it. However, as of June 30, 2020, no new measure has replaced it. Still, all acts carried out based on Provisional Measure # 905, from its inception until April 20, 2020, will remain valid for that specific period. However, due to the revocation, any laws affected by Provision Measure # 905 have returned to their former state.

Furloughs and Reduction of Salary During COVID-19

New Legislation Enacted

Author: Renata Neeser, Shareholder – Littler United States

On April 1, 2020, the government enacted Provisional Measure # 936, allowing companies to reduce employees' salary and hours by 25%, 50% or 70% (depending on the collective bargaining agreement), for up to 90 days, as well as (alternatively) suspend employees' employment agreements (furlough), for up to 60 days, during the COVID-19 pandemic. The measure also instituted a government emergency benefit to be paid to workers during the furlough and/or reduction of salary, similar to the unemployment benefit. The Provisional Measure has been converted into a law (Law 14.020 of July 6, 2020) with one significant change. The new law provides that, in the event the union representing the employees (keeping in mind that all employees in Brazil are represented by unions) enters into an industry-wide collective bargaining agreement establishing specific terms for furloughs and reduction of salary after the employer enters into individual agreements with its employees, the terms of such collective bargaining agreement shall supersede the individual terms if they are more favorable to the employees. Therefore, employers with employees on furlough or reduced salary, or planning to implement such measures, need to keep an eye on the union activities and plan and prepare for such potential changes in their individual agreements.

Brazilian Supreme Court Expands Its Interpretation of Privacy Rights

Precedential Decision by Judiciary or Regulatory Agency

Author: Renata Neeser, Shareholder – Littler United States

On May 7, 2020, the Brazilian Supreme Court ruled in favor of the permanent injunction of Provisional Measure (MP) # 954, which allowed the Brazilian Institute of Geography and Statistics (IBGE), a governmental agency, to access personal data of 200 million individuals through the telecommunication companies so it could conduct the decennial census. The Supreme Court reasoned that MP # 954 did not provide sufficient mechanisms to protect the individuals’ personal data and the collection was excessive in relation to the legal justification. However, the significance of this ruling was that for the first time the Supreme Court has recognized the fundamental right to personal data, as an autonomous fundamental right under the Constitution besides the right to intimacy and privacy, therefore expanding the individual rights to their personal data even without the Data Protection Law (LGPD) and the National Data Protection Agency (ANPD).

COVID-19 Cases – Brazil and São Paulo Updates

New Regulation or Official Guidance

Author: Renata Neeser, Shareholder – Littler United States

The number of COVID-19 cases in Brazil continues its upward trajectory. As of July 9, Brazil is the second country in the world with the highest number of cases, totaling 1,755,779, and deaths, totaling 69,184. São Paulo, the largest financial hub of the country has 349,715 cases and 17,118 deaths. São Paulo State has put together a comprehensive return to work plan with specific protocols for various business sectors, including protocols for testing and monitoring the health of employees, and five phases. Many regions of the state have been rolled back to Phase 1, as the numbers continue to grow, although the city of São Paulo seems to be on the right track and continues to be on Phase 3. The federal government has also put together an Ordinance (Joint Ordinance # 20/2020) with vague guidelines and indicating that it is up to the states and municipalities to determine their own rules, including the use of masks, which is mandatory in São Paulo and carries a penalty of about $1,000 per infraction.