The Government’s Economic Team Aims to Improve Public Employee Management and Reduce Personnel Expenses
The federal government is conducting a study aimed at hiring new employees under the CLT (Consolidation of Labor Laws) regime.
As spending on employees is currently the second largest expense in the budget, the federal government is studying the creation of a program called “State Transformation Agenda,” which also aims to provide greater flexibility in managing its employees. See Here! Government Reaches Investment Agreement with Saudis.
Second only to pension benefits, spending on active employees is expected to reach R$ 336.6 billion in 2020, according to government projections.
The highest-paid employees (5% of the total) represent 12% of the total payroll and have an average income of R$ 26,000, while overall, the union spends R$ 12,500 per employee per month.
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According to the study, the new hires would be governed by the CLT after completing a probationary period.
Regarding job stability, it would only be achieved after a period of experience and demonstrating productivity in the position. This period would initially be set at 10 years, but would need to be approved by President Jair Bolsonaro.
Currently, the contracts of employees in state-owned companies are already governed by the CLT, and the STF (Federal Supreme Court) recently ruled that the dismissal of these employees can occur as long as the dismissal is justified.
Public employees would gain the right to FGTS in case of unjustified terminations, a right they do not currently have.
The Proposal Text
The text is currently stalled in the CCJ (Committee on Constitution and Justice) of the Chamber of Deputies, and the government is still considering including in the PEC (Proposed Constitutional Amendment) a limit of 30 days for employees’ vacations, as there are currently categories such as judges and members of the Public Ministry that have the right to 60 days of vacation.
The government will not have an easy path for the PEC’s approval since Union lawyers are already seeking the right to two-month vacations in the STF.
There is already a PEC presented by Deputy Rubens Bueno (Cidadania-PR) that prohibits vacations longer than 30 days, and President Jair Bolsonaro stated yesterday (10/31) that perhaps the government will adopt some proposals already underway in Congress to move these discussions forward.
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