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How has labor reform impacted time and attendance control?

New law has changed the relationship between companies and employees.

(ANSA) – Two years after coming into effect, the labor reform This has triggered a series of changes in the routines of Brazilian companies and in the relationships between employers and employees, which has directly impacted the management of working hours control.

Among proponents of the new measures, the main triumph was the reduction in the number of labor lawsuits during the period, a fact questioned by critics of the reform.

According to experts, the lack of regulation following the expiration of a provisional measure on the subject is the main reason for the increased insecurity among employers, employees, lawyers, and the labor courts themselves.

Those closely following the issue estimate that only after a year of the new rules being in effect will it be possible to have a more realistic view of the legislation's impact.

Labor lawsuits

According to the Superior Labor Court (TST), the first three months of this year registered a 45% drop in the number of labor lawsuits compared to 2016 and 2017. According to the TST, 243,000 people filed new lawsuits in October of last year, one month before the law came into effect.

The number rose to almost 290,000 cases in November, a record for the historical series, driven by workers' attempts to get ahead of the law's implementation. There was a significant drop in December and January, with a slight recovery in February and March.

Congressman Rogério Marinho (PSDB-RN), rapporteur of the reform bill in the Chamber of Deputies, classifies the lower number of lawsuits filed by workers as a "success." In an interview with Agência Brasil, he stated that the new rules have generated savings for society, with lawsuits being filed in a "more responsible" manner.

“The quality of the processes has also increased. The labor courts had a number of unfounded claims. So, frivolous or opportunistic litigation has been reduced. This is a great improvement, as it speeds up the processes,” he stated. The parliamentarian also mentioned that workers now wait less time to schedule hearings.

Judge Múcio Borges, head of the 13th Labor Court of the Regional Labor Court of Rio de Janeiro, believes that the main reason for the drop in lawsuits is that access to justice has become more "costly".

He points out that, with the reform, the worker who loses the lawsuit must pay the court costs and the expenses with the company's lawyers.

“"The employee is afraid to file labor lawsuits because, if they are unsuccessful in their claim, they will have to pay the costs," he noted.

Unemployment rate

The latest Continuous National Household Sample Survey (PNAD) showed that the unemployment rate in Brazil rose to 13.11% in the first quarter of 2018, reaching 13.7 million unemployed.

The increase was 11.21% compared to the previous quarter (12.3 million unemployed), but represented a decrease of 3.41% compared to the first three months of 2017 (14.2 million).

The General Registry of Employed and Unemployed Workers (Caged), from the Ministry of Labor, showed an increase of 0.15% in formal employment in Brazil in March.

The effects of the labor reform are already being felt during this period: the trend is that the numbers of intermittent work and terminations through direct agreements between companies and workers will continue to increase.

According to Congressman Rogério Marinho, "other structural issues" are necessary for the recovery of employment in the country.

“"The reform alone is not enough to generate jobs," he said, citing pension reform and tax simplification as other measures that need to be implemented.

 

Source:

ANSA Brazil

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