Green and Yellow Labor Agreement update


On Wednesday (04/15/2020), the House of Representatives in a remote session approved Executive Order 905/19 to create the so-called Green and Yellow Labor Agreement, which will be now reviewed by the Federal Senate.
If the Senators do not approve Executive Order 905/19 by April 20 it will lose its legal validity.
The text approved by the Special Commission was subject to resistance by some members of parliament. Thus, in order to make the proposal feasible, some changes to the original text were approved.
Among them, is an increase in the percentage of Severance Fund (FGTS) to be paid by companies. In the original text it was 2%, but the House of Representatives increased this percentage to 8%.
The permission for employees work on Sundays and Holidays, which has been controversial since the beginning, was removed. On the other hand, the authorization to work on Saturdays, Sundays and Holidays for some categories remains.
The rapporteur also amended the bill forwarded to the Senate to make the payment of the Salary-Education wage (25%) mandatory.
The labor booklet will no longer serve as a civil document and the transportation voucher should not be negotiated by collective agreement.
The new text also expanded the program allowing workers over 55 years and unemployed for more than 12 months to be hired in this category.

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