Provisional Measure regarding the ‘Economic Freedom’ approved by the Senate

Last Wednesday (21.08), the Senate approved the Provisional Measure No. 881/2019 (Provisional Measure of Economic Freedom), which reduces bureaucracy and simplifies the procedures regarding economic relations between individuals and also individuals with the Government. The resulting bill (PLV No. 21/2019) still needs the sanction of the President.

Labor matters

Compared to the version approved by the House of Representatives, the senators overturned the changes regarding the work on Sundays and holidays. In the previous version, the employer would only be obliged to grant a day off on Sundays every four weeks, and would not have to pay double on Sundays and holidays if another day for compensatory day off was set.

Also, the digital work card was created, in which the records will be made in an electronic system. The worker may inform his CPF for the employer to make the records, which must be accessible to the employee within 48 hours.

The requirement to display workers' timesheets in a visible location was also excluded. Check-in and check-out will only be required from companies with more than 20 employees. Currently, the rule only applies to companies with more than 10 employees.

The version approved by the Senate also amends the Digital Bookkeeping System for Tax, Social Security and Labor Obligations (eSocial). The system was excluded in the first version, but the text approved by the House of Representatives and the Senate establishes its replacement by a simplified one.

Business matters

In private contractual relations, the minimum intervention and the exceptionality of contractual revision must prevail.

It is now possible to constitute a limited liability company composed by only one quotaholder.

The concepts of misuse of purpose and patrimonial confusion were established in order to pierce the corporate veil.

It is no longer need to obtain any type of public license to perform low-risk economic activities that deals exclusively with private property or authorized by third parties.

Electronic documents shall have the same validity as physical documents for all legal purposes and evidence of any act of public right.

The procedures to obtain licenses, permits and other permissions must inform a deadline for analysis of the request. If there is no manifestation within the deadline, the request will be considered granted.

Direct or indirect public administration must not require any certificate without express provision of law.

SAEKI ADVOGADOS will continue to follow the MP 881/2019 and will address the most relevant issues in the upcoming newsletters.