7 Million Brazilians Had Contracts Interrupted or Work Hours Reduced

According to data released by the Ministry of Economy yesterday (12), 7.2 million people were affected by such measures

Data released by the Ministry of Economy yesterday (12) reported that around 7.2 million Brazilians had their work hours reduced or contracts interrupted during the pandemic. The data was counted until 11 a.m. yesterday.

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Out of the total number of formalized workers in the country, the 7.2 million people represent 21% in total. One in five workers with formal contracts already feel the effects of the coronavirus crisis.

The Southeast region leads in reductions and suspensions with 54.5%. The Northeast region comes in second with 19%. Following that is the South region with 15.7%, the Midwest with 6%, and the North with 4.7%.

It is important to remember

In April, the federal government issued provisional measure (MP) 936, valid for 90 days, allowing for a reduction in hours with a proportional salary reduction. Both can be reduced by 25%, 50%, and 70%. The total interruption of the contract will be valid for two months.

The rules established by the federal government determine that workers will have their income supplemented by the government as if they were receiving unemployment insurance. The employer must also guarantee the job security of employees who adhered to the measure for the same duration that the rule was in effect in the company. That is, if the employee had their hours reduced for two months, they will be guaranteed that they will not be dismissed for up to two months after the measure ceases to be valid.