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The program was created by the federal government to reduce job charges for companies and therefore stimulate job creation, especially among youth.
After the approval of the basic text, the deputies began to analyze the most important aspects, that is, the proposals that aim to modify the wording. This step was not completed until the last update of this report.
The provisional measure that gave rise to the Green and Yellow Contract program is valid until the next day 20 and must still be approved by the Senate to proceed to the sanction of President Jair Bolsonaro. If the text was not approved by the senators until the 20th, it will lose its validity.
The Yellow Green Contract applies to job offers that pay up to a minimum and a half salary, that is, R $ 1,567.50 (in 2020).
The deputies approved a more different version of the original government proposal. The company’s contribution percentage to the Dismissal Compensation Fund (FGTS), for example, was 8%, as is already practiced, and not 2% as the government had proposed.
According to the government, the proposal reduces bureaucracy and makes hiring easier, and therefore helps young people get their first job and professional experience.
Parliamentarians have until 20 to approve the MP of the green and yellow employment contract
The text approved by the special commission was subject to resistance from parliamentarians. To allow the proposal to be voted on Tuesday, the rapporteur, Christino Áureo (PP-RJ), withdrew some extracts, including:
- increase the employer’s contribution to the FGTS;
- work permit on Sundays and holidays;
- increase of the FGTS fine in the event of severance pay;
- extract that eliminated the employer’s contribution to Salário Educação.
Parties opposed to the proposal have submitted regime requirements in an attempt to delay the vote.
MP is approved that encourages the employment of young people between 18 and 29 years old.
Find out what the approved proposal offers:
- The contracts refer to vacancies of up to a minimum and a half salary (R $ 1,567.50, in 2020);
- The total hiring of workers in this modality is limited to 25% of the company’s total employees;
- Companies with up to 10 employees may hire two workers under these conditions;
- The new type of hiring will be carried out only for new jobs, taking as reference the average of the total number of employees between January 1 and October 31, 2019 or the average in the last three months before hiring, which be less;
- Employers will not have to pay the employer contribution to INSS (20% on payroll); nor will they be charged fees for System S.
- The contract can be concluded for up to two years. If this period is exceeded, the contract rules will be applied for an indefinite period provided in the CLT;
- Contractors can work up to two hours overtime, with pay of at least 50% more than regular hourly pay;
- The contribution to FGTS remains at 8% (and not at 2%, as predicted in the original text)
The approved proposal eliminates the authorization to work on Sundays and holidays, a point that, since the edition of the MP, caused controversy among the parliamentarians.
Initially, the text authorized work on Sundays and holidays, as long as the employee had a 24-hour weekly rest “preferably” on Sundays.
The government’s proposal determined that the pause should coincide with Sunday at least once every four weeks for the commerce and services sectors and, for the industry, once every seven weeks.
Currently, the regulation of the categories that can exercise on Sundays and holidays is determined by an ordinance of the Ministry of Economy. However, the MP sent by the government modified the Consolidation of Labor Laws (CLT) to extend this authorization to all categories.
The approved text maintains the work authorization on Saturdays, Sundays and holidays for the following categories: telemarketing; call center; Customer Service (SAC); banking automation activities; digital channel services; technology, security and asset management areas; exceptional banking activities or in different areas, such as fairs, exhibitions, shopping centers, airports and bus, train and metro terminals.
The rapporteur also removed an article that allowed the employer to contract, by agreement with the worker, private insurance for personal accidents, such as accidental death, bodily harm, cosmetic damage, and moral damage.
According to the text presented by the government, in case of contracting the insurance, the employer would pay an additional risk premium of 5% over the worker’s base salary, and not 30%, as currently provided by law. The risk premium would only be paid in case of permanent exposure of the worker, that is, 50% of his working hours.
One of the most controversial points in the original MP, the collection of social security contributions on the amount of unemployment insurance, was also withdrawn in the mixed commission, in a vote on March 17.
The text sent by the Executive stipulated that this discount would be mandatory. The argument was that the contribution would compensate for the loss of program income. Many lawmakers, however, resisted the idea.
The approved text makes this discount optional. If you choose to collect, set at 7.5%, the beneficiary may count this period when calculating the contribution time for retirement, as indicated above.
During the vote on the most important aspects, the deputies approved one presented by the PSL, which states:
- It allows the advance of the amounts of labor, proportionally, month to month (for example, vacations, 13, FGTS). The minimum percentage to divide these funds must be 20%;
- Reduces the FGTS fine to 20% in the event of dismissal without just cause, excluding the fine for dismissals with just cause (the basic text defined the FGTS fine as 30%, for dismissals with and without cause).
