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Congress overrules the presidential veto of article on PLR (profit sharing) of MP 936

06/11/2020

Regarding the subject “Profit Sharing – PLR” regulated by Law n. 10,101 / 2000, we inform that, on November 4, 2019, the Brazilian Congress overruled the presidential veto related to items 13 to 22, which deal with article 32 of Law no. 14,020 / 2020, as a result of the conversion of Provisional Measure no. 936/2020.

Therefore, the rule now approved has the main following directions:

(i) if the Labor Union does not indicate a representative within 10 days, the joint commission may initiate the negotiations; .

(ii) the company may have several PLR programs, subject to periodicity;

(iii) reiterates the prevalence of autonomy of the will of the parties;

(iv) the plan signature must precede any payment and occur at least 90 days prior to the final installment;

(v) periodic errors only affect payments made in disagreement and not the entire plan;

Please let us know should you need any further clarification.

This e-alert is a general review of the subjects discussed above and does not constitute a legal opinion or legal consult.

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