The environment for labor relations has been improving in connection with changes instituted under the so-called Labor Reform, designed – among other aspects - to provide parties and unions with more flexibility to negotiate working conditions. Still, labor law in Brazil remains very restrictive in relation to workers rights; and Labor Courts have traditionally adopted a very worker-protective line of judgment.
In the aftermath of the so-called Car Wash Operation, companies and their employees have been under thorough scrutiny in Brazil. Also, recent amendments in legislation have increased companies’ liability, regardless of fault, for acts committed by workers. In this context, companies have been required to improve efforts so as to ensure employees implement effective compliance policies.
This issue of LS Brazil Outlook discusses employment and labor issues and how they affect different aspects of compliance.
Larissa Campos Machado and Fernando de Azevedo Peraçoli review shareholders’ liability for labor and employment obligations of companies. Isabela Pannunzio analyses financial compensation as an incentive for employees and executives to report relevant facts in internal investigations.
I author two notes. The first one considers arbitration as an alternative mechanism of resolution of individual employment disputes; whereas the second comments on employment-related aspects that must be complied with in internal investigations.
Finally, Isabela Schenberg Frascino, Paulo Bione de Figueiredo and I discuss labor, tax and social security implications of the implementation of Stock Option Plans to boost performance of employees and executives.
Enjoy your reading.
Image credit:TST (Superior Labor Court)
L&S Authors
