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The government will send the labor reform to Congress by the end of the year.

During a breakfast meeting with journalists this Wednesday, the 20th, the Minister of Labor and Social Security, Ronaldo Nogueira, said that Brazilian labor legislation dates back to the 40s and that, since then, new economic activities have been incorporated into the CLT (Consolidation of Labor Laws), which "will be updated"; "It has become a patchwork quilt that allows for subjective interpretations," he stated; regarding outsourcing, he spoke of seeking a consensus between workers, employers, and experts in the field; "This discussion of core activity and ancillary activity is irrelevant at this moment."

During a breakfast meeting with journalists this Wednesday, the 20th, the Minister of Labor and Social Security, Ronaldo Nogueira, said that Brazilian labor legislation dates back to the 40s and that, since then, new economic activities have been incorporated into the CLT (Consolidation of Labor Laws), which "will be updated"; "It has become a patchwork quilt that allows for subjective interpretations," he stated; regarding outsourcing, he spoke of seeking a consensus between workers, employers, and experts in the field; "This discussion of core activity and ancillary activity is irrelevant at this moment" (Photo: Gisele Federicce)

Paula Laboissière - Reporter for Agência Brasil

The Minister of Labor and Social Security, Ronaldo Nogueira, said this Wednesday, the 20th, that the government of interim president Michel Temer will send to the National Congress by the end of this year a proposal for labor reform and another to regulate outsourcing.

During a breakfast meeting with journalists, he recalled that Brazilian labor legislation dates back to the 40s and that, since then, new economic activities have been incorporated into the Consolidation of Labor Laws (CLT). "It has become a patchwork quilt that allows for subjective interpretations," he opined.

According to the minister, the proposed labor reform to be drafted by the government will prioritize collective bargaining and address issues such as wages and working hours, but will not allow, for example, the splitting of vacation time or the thirteenth-month salary.

"The CLT (Consolidation of Labor Laws) will be updated with the goal of simplification, so that the interpretation is the same for the worker, the employer, and the judge," he said. "Rights will not be revoked," he added.

Regarding the regulation of outsourcing, Nogueira stated that points from the proposal approved in the Chamber of Deputies could be used, but he did not go into details. According to him, a working group will be created to define what constitutes outsourcing and which specialized services can be outsourced.

"We will bring together workers, employers, and experts in the field to refine the outsourcing proposals in search of a consensus," he emphasized. "This discussion of core and support activities is irrelevant at this time."

Job Protection

The Ministry of Labor also reported that it intends to make the Employment Protection Program (PPE) permanent by sending a bill to the National Congress.

The tool was created to protect jobs during periods of temporary economic slowdown and provides, for example, for a reduction of up to 30% in working hours and salary through collective bargaining agreements. The program's initial expiration date is the end of 2017.

"It's a relief policy to guarantee employment," said the minister. "Brazil is regaining employability and confidence in the market. Companies won't need the PPE, but it will be a program available to all sectors that are in crisis," he concluded.