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Bill that establishes the Emergency Program for Job and Income Maintenance becomes Law 14.020/2020

By Jorge M. Camatta

The 128th Edition of the Official Gazette, published on July 7th, officialized the announcement made by President Jair Bolsonaro on social media approving Law 14.020/2020, which establishes the Emergency Program for Job and Income Maintenance. What was before addressed by Provisional Measure n# 936 is now law. The law results from the conversion of Bill n# 15/2020 and was awaiting presidential approval since June 16th.

The Emergency Subsidy will be paid by the Federal Government directly to employees through the Economy Bureau. Its calculation basis will be the monthly amount of unemployment insurance that the employee would have access and may reach up to R$ 1,803.00 per month. The greatest news is that the periods of employment contract suspension and work hours decrease, as well as wage decrease before established in maximum of 60 and 90 days respectively, now may be extended by Federal Government.

This is how adjustments to the working journey may take place under the new law:

Even though the employee’s wages are out of described limits, the income and occupation maintenance measures will still be applicable by means of an individual agreement when:

  • Proportional wage and working hours decrease in 25%.

  • Proportional wage and working hours decrease or employment contract is suspended when this agreement results in no decrease of the total amount monthly earned by employee. In this amount are included the Emergency Subsidy, the monthly compensatory aid, and in case of decrease in working hours, the wage paid by employer for worked hours.

Despite those changes, the agreements executed under Provisional Measure 936/2000 are still coordinated by that Measure, as established article 24 of the Bill hereinabove.

Other changes brought by Law 14.020/2020:

Employee receiving retirement check:

Besides other rules, for employees receiving retirement payments, becausee such are excluded from the Emergency Subsidy, the proportional decrease of working hours and wage or temporary suspension of the employment contract by individual written agreement shall only be acceptable when the employer paysan additional monthly aid.


Besides maintaining employees' temporary employment stability for the same period agreed for suspension or wage reduction, should the measures foreseen herein be applied in relation to a pregnant employee, that employee's temporary stability shall be accrued only after the stability period granted by Article 10 of ACDT (from the child's until 5 months afterwards).

Employee with disability:

Employees with disabilities may not be dismissed without cause, even if the company meets the legal quota.

Factum Principis:

In the hypothesis of activity paralisation or suspension determined by municipal, state or federal authority due to public calamity, article 486 of the Consolidation of Labour Laws (CLT) shall not apply. Article 486 establishes payment of indemnification by a public authority liable for employee lay-off.

Possibility of prior notice cancelation:

By agreement, company and employee may cancel an ongoing prior notice and adopt the Job and Income Maintenance measures, applying wage decrease or employment contract suspension.



Jorge M. Camatta


Post-graduate degree in Law and Labor Relations, São Bernardo do Campo Faculty of Law.

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