On March 28, 2022, the Brazilian government published a new Provisional Measure1 that, among other matters, modifies some of the provisions of the Labor Code2 relating to remote work that could have a significant impact on employers.
Provisional Measures take effect on the date they are published, so they do not leave any time for employers to adjust to new requirements. In addition, they can expire in 120 days if Congress does not ratify them into law, which we have often seen in the past few years.
The most significant change brought by the Provisional Measure is that until last week, remote work was exempt from laws governing working hours. The Provisional Measure changed the exemption, setting forth that only work that is performed based on tasks or production are exempt from laws governing working hours; all other regular jobs based on working hours are not exempt. This is a huge change in policy, as it will require companies with more than 20 employees to implement alternative electronic timekeeping systems that, as a general rule, need to be approved by the union, if they did not have one in place for non-exempt employees before.
In addition to the challenges of implementing the needed timekeeping infrastructure, companies will also need to pay overtime if such employees work more than the regular hours. The Provisional Measure clarifies that the time an employee spends outside the normal working hours using the technological equipment and necessary infrastructure,...
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