Labor Reform in Brazil: Assessment of impacts and challenges after 6 years. A critical look at changes in legislation and the Brazilian and international labor landscape.
The year 2017 marked a significant turning point in Brazilian labor legislation with the promulgation of the Labor Reform (Law 13,467/17), aiming to modernize labor relations and boost the job market. Now, six years since its implementation, we can observe a series of changes, with some receiving praise for their positive aspects, while others face strong criticism from various social spheres.
Opinions range from opposition to the reform, emphasizing the need to strengthen workers’ guarantees, to those more favorable to Law 13,467/17, demanding adjustments for greater flexibility in guarantees and labor rights, aiming to dynamize the national economy, strengthen Brazil’s global competitiveness, and stimulate the job market.
Regardless of pro or against reform perspectives, it is undeniable that contemporary society has evolved over the 80 years of the Consolidation of Labor Laws’ (CLT) existence, demanding significant adaptations in legislation to align with the new social and economic context. This became more evident with the promulgation of Law 13,467/17.
The process of discussion and approval of the Labor Reform in the National Congress generated substantial criticism. At the time, a political agreement between the Government and Congress resulted in the exclusion of changes proposed by the Federal Senate in the legislative text, speeding up approval and avoiding more significant disputes. In return, the Government would present a Provisional Measure on the more controversial points, materialized in MP 808/2017, which was not converted into law.
Although the modernization of labor legislation is undeniably necessary, the reform left several open gaps, such as more detailed regulation of teleworking, which only materialized during the pandemic, as well as issues related to the union system and work on digital platforms.
On the other hand, significant advances were achieved in topics such as outsourcing of core activities, prevalence of negotiated over legislated, end of the ultra-activity of collective norms, flextime, and the 12×36 working hours established through individual agreements, with some of these themes already validated by the Supreme Federal Court (STF) in direct actions of unconstitutionality.
Other matters await judgment by the STF or have been deemed unconstitutional, such as setting the value of compensation for moral damages, establishing quorum for approval of Summaries in the Superior Labor Court, union intervention in collective dismissals, intermittent work, among others.
Considering the absence of regulation of work on digital platforms, the Federal Government instituted, through Decree No. 11,513/23, a tripartite Working Group, involving the Government, workers, and companies, to formulate a regulation proposal.
In this context, there is an urgent need to discuss, within the National Congress, a comprehensive reform of labor legislation, modernizing necessary aspects and preserving already acquired rights. This dialogue should involve broad social consensus, encompassing the three branches of the Republic, unions, workers, and companies.
Undoubtedly, progress has been made, but the challenges are considerable and require significant political will to overcome them. As Labor Reform reaches six years and the CLT reaches 80 years, we acknowledge the significant achievements that have brought us here, but future challenges remain unpredictable.