Government of Brazil authorizes to rehire redundant employees

The measure foresees the possibility that the rehire will be carried out for a lower salary than the previous one.

The Government of Brazil published, in this Tuesday in an extra edition of the Official Gazette of the Union, an ordinance that allows companies to rehire hired employees in less than 90 days without just cause.

The rule will apply for the duration of the health emergency, which is expected to be in effect until December 31. In accordance with the ordinance, the rehire must obey the same terms of the previous contract.

El gobierno brasileño autorizó la recontratación con salario menor de quienes fueron despedidos durante la pandemia.

Y que tal un impuesto a las grandes fortunas en el 2do país con mayor concentración de renta?

Qué horror, sería “ideológico”. pic.twitter.com/LQa5NfHMWZ

— Nacho Lemus (@LemusteleSUR) July 15, 2020

However, rehiring can also take place under “different conditions” from the original employment contract, provided that this provision exists in an “instrument derived from collective bargaining”.

The ordinance temporarily eliminates the rule of the former Ministry of Labor, which establishes that in a process of dismissal without just cause, the company must wait 90 days to reinstate or rehire the worker.