Government extends program that allows workload and salary reduction until December | economy

The decree must be published in the “Official Gazette” this Wednesday (14), according to the Planalto Palace. The current deadline ended this month and Economy Minister Paulo Guedes had already announced the extension of the program.

As the measures are only valid for the duration of the state of public calamity, the deals must close on the last day of 2020.

• Workload and salary reduction: see questions and answers

The Emergency Benefit for Employment and Income Preservation (BEM) was introduced with an interim measure in April and had already undergone two other extensions.

“Given the current scenario of social and economic crisis, and with the continuation of restrictive measures of social isolation, it is necessary to extend, once again, the maximum term of validity of the agreements,” says material released by the Planalto Palace in this Tuesday (13).

“This action will allow companies that are in a situation of vulnerability to continue surviving this period and, in this way, preserve employment and project a better economic recovery,” says the government.

The program was created due to the new coronavirus pandemic and anticipates that the government will recover part of the employees’ income through financial aid.

The amount of the recomposition corresponds to a percentage of what the employee would receive from unemployment insurance and is deposited directly into the worker’s account.

In return, the employer is obliged to guarantee the employment of that employee for a period equal to that of the reduction. In other words: if the contract is reduced or suspended for four months, the worker cannot be fired for the next four months.