Problems relating to Trade and Investment on Brazil
16. Employment |
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Issue |
Issue details |
Requests |
Reference |
| (1) Resident and Capital Requirement For Liaison Office Representative And Expatriates | - GOB authorises only a Resident in Brazil or in the case of foreigners, only a Permanent Visa Holder (not Temporary Visa Holder) to assume the position of the Chief Representative in a Foreign Funded Enterprise (FFE). The capital fund of 600,000R$ registered with BCB is a pre-requisite for an expatriate to acquire Permanent Visa. Should the FFE require an additional expatriate, it must employ at least10-Brazilian nationals and make additional investment of 150,000R$. Temporary Visa is valid for 2-years only, and its new acquisition has become increasingly difficult. | - It is requested that GOB: -- repeals the requirement for acquisition of Permanent Visa -- accepts resident card and passport copy endorsed by Ministry of Justice (the same as GOJ does), and -- streamlines the application procedures for change in RNE (Registro Nacional de Estrangeiros=Foreign National Registration, serving as Foreign National Identity Card) after expatriate's assumption of duty in Brazil. |
- Regulation of Brazilian Immigration Bureau - Decision No.27 of July 29, 1994 - Resolucao Normativa 10 CNI (of 11 November 1997) - Prescriptive Resolution No. 95 (Issued on 19.08.2011 by CNI) - Prescriptive Resolution No. 99 (Issued on 19.12.2012 by CNI) |
| (Action) - Expatriates are authorized to apply for a permanent visa after more than 4 years stay in Brazil under temporary work permit. - By Regulation 95/2011, the visa acquisition fee was changed to R$600,000. |
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| (Improvement) - Permanent visa for one employee is granted to a corporation having created more than 10 new employments within 2 years of incorporation or to an individual having invested US$50,000 minimum. (National Immigration Bureau Decision No.60 of 6 October 2004). |
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| (2) Delays and Difficulties in Acquisition of Visa Issuance | - It takes quite a long time to obtain appropriate Business, Temporary-Short-Stay, or Long-Term-Permanent-Stay Visas as the case may be for MFS to accept from Japan, persons for business trip, supporters, and for long-term stay. - GOB requires visa for a business trip by technical support personnel. However, enterprises are unable to cope in emergencies as it takes more than 10-business days before the visa is issued. - GOB has tightened its examination of work visa permit, making it difficult for enterprises to obtain Visas for the Senior Executives and the Engineers. The delay in issuance of Visas for a Long-Term Stay materially affects the personnel deployment policy of enterprises. It takes about a week and payment of Consular Fee for 10,200 yen to obtain a (business tip) visa valid for 90-days stay (in contrast to the 5-years validity of the visa issued by the U.S. to Brazilian applicants.) - It takes about half a year for foreign applicants to obtain (permanent/temporary) work visa. - It takes more than 5-months in average to get the Visa issued. It has been said that the simplified acquisition procedures have expedited the acquisition, however, not at all. - It takes quite a long time to obtain visa locally in Brazil, (sometime it takes 3-months). - Entry into Brazil is not authorised by merely proving the protocol on the extension of the stay period of the short-term visa. - It takes 4 to 6-months to complete the process for change of the short-stay visa to permanent visa, provided, however, that application is accepted only 2-months before the ending date of the validity. - Even for an existing enterprise, it takes more than 4-months for the acquisition of work visa. Moreover, since last year, renewal of temporary visa has been suspended. After the change of the procedure from the Renewal to permanent visa issuance, it takes longer, about one-year for the issuance of the permanent visa. - It takes two to three weeks for acquiring the work visa. It makes it difficult to make emergency business trips. - Since 2012, GOB requires application for shifting to permanent visa, after 2-years of stay under the visa V (with 2-year validity). The process progresses at the snail's pace. Some expatriates have experienced the 1.5 years waiting period. During the review period, it is advisable to obtain tourist visa in Japan and re-enter Brazil. However, the following problems have occurred: -- An emigration officer at Sao Paulo GRU airport confiscated the RNE, on account of the visa expiry. -- Brazilian consular office in Japan refused the issuance of the tourist visa, on the ground that the applicant had stayed in Brazil beyond the authorised period of stay, despite the fact that the tourist visa is only transient in nature based on the Brazilian law that requires a valid visa upon entry into Brazil. - For acquisition of work permit in the case of board of directors of the locally established legal entity, COB's prior approval is necessary, taking half a year from unofficial announcement to formal assumption of new post. A bank clerk, after initial stay (of 2-years) under temporary visa, it takes substantial period (for more than 18-months in a case) to change to permanent visa. Moreover, pending receipt of Certidao de Tramite (Certificate of Processing) from the due date of visa status change from temporary to permanent status on the web, exiting Brazil is restricted on business trip, etc. (Uncertainty in acquisition date makes it difficult to make a firm business plan.) (Note) Acquisition in Argentina of tourist visa is one expedient, at the risk of "double visa" and wasted time and cost. - In the past, it has taken in average about 40-days from the filing date of application at department of labour to the receipt of the visa, while the requisite time has varied substantially in one case to another depending upon the filing date of application. - The visa issuance procedures are extremely bureaucratic, and it takes much time. |
- It is requested that GOB: -- expedites the visa acquisition procedures, -- simplifies the procedures for extension of the stay period of various types of Visas. - It is requested that GOB: -- expedites the visa issuance, and -- makes the visa validity longer. -- accepts filing of visa application at any time, not necessarily in case of emergencies, at External Brazilian Consulate General. - It is requested that GOB streamlines and expedites visa issuance and extends the stay period for a long-term-visa, comparable to the U.S. Visas. - It is requested that GOB: -- streamlines, expedites the procedures for visa acquisition and, -- streamlines the application procedures for the extension of the authorised stay period under various visas. - It is requested that GOB: -- expedites the procedures for Visa Issuance and Renewal. And -- makes the acquisition period of permanent visa shorter (more favourably) than the time required for temporary visa acquisition. - It is requested that GOB expedite visa acquisition procedures. - It is requested that GOB accepts the application for change by 6-months in advance from the ending date of the validity. - It is requested that GOB: -- expedites the procedures for visa issuance/renewal procedures, and -- prioritises the permanent visa acquisition period to make it shorter than the temporary visa. - It is requested that GOB: -- expedites visa issuance, -- makes longer the visa validity, and -- accepts direct visa application at external Brazilian consulate general. - It is requested that GOB takes steps to: -- devise ways and means to expedite the process for visa switching application. -- have immigration officers in Brazil and consular offices in Japan commonly share and update the actual correct information concerning visa application. - It is requested that GOB: -- expedites the procedures for visa acquisition / renewal procedures, -- extends the temporary visa validity for a longer period, and -- drafts and promulgates clear rules to cope with the transient period, pending receipt of Certidao de Tramite. - It is requested that GOB: -- expedites the visa issuance, and -- makes the visa validity longer. |
- Immigration Control Law - Article 16 of Lei No. 6815/80 - Decision No.53 of Immigration Council (CNI) |
| (Action) - The privatization of public corporations has prompted the uprising number of technical staff sent to Brazil by European enterprises and has stimulated the resistance of the Brazilian Unions and the unemployed. GOB has tightened its policy for the protection of the domestic workers. - As conditions to introduce an alien technical staff into Brazil, GOB requires the proof of the applicant being a holder of high technology and completion of the transfer to the domestic Brazilian staff the know-how within the prescribed period. - Regulation Decision No.53 of July 19, 2002 authorizes issuance of work permit and visa to aliens visiting Brazil for up to 90-days (non-extendable) for the purpose of providing a technical after-service to Brazilian enterprises. Furthermore, each Consulate General at its own discretion is authorized to issue a (non-extendable) limited 30-days' temporary visa for once only in 90-days for the same alien, in the event of an emergency. - Regulation Decision No.55 of August 27, 2002 authorizes issuance of an emergency 90-day's visa for aliens visiting Brazil for the purpose of providing a technical service to Brazilian enterprises. It also authorizes Brazilian Consulate to resume issuing a 30-days' emergency visa. - At the Japan-Brazil Joint Committee on Promotion of Trade and Investment held in September 2009, Japan side brought up the issue about the work visa acquisition. Brazilian side expressed its appreciation of the problems. - Since 1 January 2012, Japan-Brazil Business Visa has been in operation. - In November 2012, at the 6th Japan-Brazil Joint Commission for Trade and Investment, Japanese side raised the Work Visa problems for the Brazilian side to improve. - The validity of the Commercial Visa has been changed to 3-years. |
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| (Improvement) - Since 2nd half of 2014, the requisite time for visa acquisition has been cut down, due to the shift to the digitised filing of application. |
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| (3) The Validity of the Short-Term Entry Visa | - As the entry Visa is valid only for 3-months, and must be valid not only upon entry but also upon departure, it is extremely difficult to use. - Under the current legislation direct filing to Consular Office is possible for a stay of 30-days or less and in case of emergencies. Otherwise such application is not granted. (Work Permit is not required). - Visa validity is good for 60 days only (for entry from the U.S.), while South Koreans can enter without the visa. |
- It is requested that GOB: -- extends the Visa Validity, -- expedites the visa acquisition, -- improves the visa acquisition procedures. |
- Immigration Control Law - Article 16 of Lei No. 6815/80 - Decision No.53 of Immigration Council (CNI) |
| (4) Validity of Business Visa | - The Validity has been changed to 3-years on Business Visa. | ||
| (5) Delayed procedures for registration of RNE (Registro Nacional de Estrangeiros) | - Due to the extreme delay in issuance of the RNE (National Registration for Foreigners), expatriates are forced to show the Protocol in lieu of the RNE. However, as the Protocol is not recognised as ID in many places of various kinds, it requires lot of efforts for expatriates to get the Protocol accepted. - Application for the RNE (Registro Nacional de Estrangeiros=National Registration for Foreigners) is accepted only by reservation, which takes much time. |
- It is requested that GOB promptly issues the RNE. | - RNE Registration Procedures - Lei 6815/1980 (Legislation) - Immigration Control Law - Article 16 of Lei No. 6815/80 - Decision No.53 of Immigration Council (CNI) |
| (6) Overly Labour Protective Labour Legislation | - This is a phenomenon common to all Brazilian enterprises. The labour law that protects workers simply too far has debilitated the international competitive power of the entire nation. Workers are on the job barely for 11-months a year, while with a doctor's certificate, they are entitled to paid leave from 1-week to 10-days, even for a slightest injury that self-application of a sticking plaster would do the job, (a fake "doctor's certificate" is available also). Moreover, breakfast, lunch, coffee break, commuting bus, medical insurance... All at employers' expense, on top of annual wage hike (7-10%), inflation (5-6%), and many more... How could employers maintain their competitive edge with all of these on their shoulders? - The going labour law in Brazil generously protects workers. Apart from the wages, employers incur various related personnel expenses: (1) INSS (Social Security Salaries and Benefits), (2) FGTS (Severance Indemnity Fund), (3) Decimo Terceiro (13th Month Wage, or Payment of 13-Months Wage Per Annum), (4) PLR (Employees' Profit Sharing Plans), etc., approximating the amount of wages, impacting heavily upon profitability. - Social Insurance Laws of various kinds have inflated the labour cost doubling the face value of worker's wages that enterprises assume, which is too heavy. In addition, while the Labour Law mandates a specified rate of wage hike each year, downward adjustment of wage is prohibited. Employers are unable to determine individual wage by reflecting the company's business performance, and evaluation of individual workers' contribution. Labour cost keeps going up. - The Law promulgated on 1 March 1943 prohibits the bank workers from working more than 8-hours a day. Surplus backup workers must be secured all the time to meet the peak period requirement, since no overtime work is permitted. - The system for acquisition of paid leave is stark and stiff, 30 days per annum, for 10-consecutive days or more each time. Small and medium enterprises are unable to defray costs and allowances for employees on leave. - During the 30-days annual paid leave (APL) of employees, employers must pay annual leave allowance to employees. |
- Labour law needs amendment to level with other countries. - It is requested that GOB slims down or repeals in part the labour protective schemes. - Structural Reform (Review of the excessive-labour protection). - It is requested that GOB repeals the Law promulgated on 1 March 1943. - It is requested that GOB repeals the provisions in the Labour Act concerning the paid leave. - While there is no question that employees are entitled to take annual paid leave, payment of allowance during the APL means extra cost to employers. It is requested that GOB takes step to repeal the provisions of the law that compel such requirement. |
- The Consolidation of Labour Laws (Consolidacao das Leis Do Trabalho) (CLT) - Artigo 255 DA CLT - Article 13 of the Constitution - Article 58 of CLT - Article 130 of CLT - Decree-Law nr. 5452/1943 - Consolidation of Labor Laws (CLT). - Social Security Insurance Laws of various kinds - CLT Article 462 - Labour Union Rules |
| (Action) - In July 2000, National Union of Metal Workers' Confederation appealed to the Chairperson of the Chamber of the Deputies (Camara dos Deputados=CDD) seeking 36-hours-a-week work and resorted to sporadic walkouts. The Union claimed the increased productivity as a reason for demanding shorter work-hours. - In December 2001, the bill to deregulate the restrictive provisions of CLT (Bill No. 5845) passed CDD. The Bill intended to give a more flexibility to industrial relations by amending certain workers' rights. - In 2001, the average annual revenue of domestic paid workers declined by 3.9%, a 3-year consecutive decline of the previous year, while the unemployment rate of January 2001 increased to 6.8% (from 5.7% of January 2000). - In February 2002, the 3 rightist Labor Unions demanded the Minister of Labor to extend the period of payment for the jobless insurance to the maximum of 8 months from the ongoing 3-5 months. - The Ministry of Labor Statistics concludes that as exemplified in the 70% increase in the conclusion of the collective bargaining agreement, a more emphasis has been placed in resolving industrial relations disputes through concluding the collective bargaining agreement away from walkouts in the last 4 years ended in 1999. - The low economic growth continued in the years 2001 and 2002, resulting in the official unemployment rate of 7.1% in November 2002, and the average income of paid workers declined in the consecutive 21 months up to September 2002, according to the IGBE announcement. (The unemployment rate reached 13% in the 6 large metropolitan areas nationwide.) - In May 2003, President Luiz Inacio Lula da Silva demanded withdrawal of the Bill No.5483 to amend the Labor Act, and the Bill was withdrawn at the Congress in 2004. - Since 2003, representatives of employees, employers and government have continued discussion by setting up a forum on amending the Labor Act. However, due to the severely opposing views of political, employer/employee industrial and academic concerns, culminating in the withdrawal declaration of the 3 central Labor Unions, the discussion has been suspended. - Under the appreciation of Real, GOB has raised the minimum wage by 13% to R$350. - The investment environment research by World Bank points out the necessity of discontinuing "Fundo de Garantia do Tempo de Servico (Service Period Complementing Fund=FGTS)" and of amending CLT to correct the overly labor protective provisions. - Under the labor party administration of President Lula, it was the campaign pledge to amend the Labor Act and the Labor Union Act. However, it has not shown much progress due to the fierce battle between the employers' body and the two great central labor unions that are diametrically opposed one to the other. - World Bank's "Doing Business 2006" places Brazil on the 144th position out of 155 countries in respect of ease of hiring and firing workforce. - From 1 March 2008, the minimum wage has been raised by 9.2% to R$415, exceeding 8.6% of 2007. |
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| (7) Appreciation of Labour Cost | - In each year the rate of Minimum Wage Increase has been continually higher than that of the Inflation Rate. Employers are responsible for raising wage to the extent of the inflation rate without fail. Raise in wage always means decline in profit to export oriented enterprises without means of harvesting the inflated profit from the domestic demands inflated by inflation. CLT also prohibits wage reductions. In order to remain competitive in terms of labour cost, enterprises have no alternative but dismiss their workers, whose remuneration base has exceeded a certain level. This is not only injurious to enterprises but it does not protect workers in substance either. - The phenomena equally apply to Central-South American / Caribbean countries in general. It has become increasingly difficult to secure quality workers at reasonable wage levels, and to maintain the optimum internal wage balance among employees, due to inflation, economic growth, and globalisation of enterprises that have driven up the labour cost. A Member Firm experiences difficulty in the maintenance of the fair treatment among its employees, as it must pay, for the same job, a higher wage to the newly employed workers in the recent years than the employees with many-service years. - High labour cost. - In each year, wages go up hand in hand with the inflation rate. Wage differences are large proportionate to service years in the same job category. This scheme, being dependent upon productivity improvement, the company's performance goes down, unless the productivity goes up. Also, employer's assumption of the social contribution upon labour cost is significant, affecting the business performance. - Workers get across the board wage up commensurate with the labour union in concern, the rate of increase of which is quite steep. While no problems ensue upon employment, after a few years, competitive edge is lost. - Wage increase rate is far apart ahead of the business performance and economic growth rate. (1) Labour cost increase coupled with the inflation rate makes it difficult to achieve optimum cost performance of the workforce or interchange of workers, leading to the waning of the industrial competitive edge. (2) From the employers' perspective, the workforce with the wage level in excess of a given level, being harmful to enterprises, can go nowhere but dismissal. Basically, wage hike does not protect workforce. (3) Workforce seeking stability in employment rather than wage hike finds their wages go up, only to be replaced with less expensive workforce. - As it stands, employers being unable to adjust the labour cost by cutting down the work-time upon downturn of the business performance can go nowhere but choose dismissal of workforce, in the end leading to the instability of employment. |
- It is requested that GOB: -- raises the rate of minimum wage within the scope that allows enterprises' maintenance of competitive edge by technological innovation, etc, -- totally liberalises wage increase negotiation by repealing the wage raise obligations, for inflation and -- liberalises wage reduction. - In each year, GOB and industry group announce wage increase rate guideline in excess of the inflation rate for private enterprises to follow. However, appreciation in labour cost results in the loss of competitive edge of the domestic industries. It is requested that GOB issues its labour policy in line with the inflation rate. - It is requested that GOB repeals the relative labour law provisions. - It is requested that GOB, in the least, repeals the compulsory wage raise at once. - It is requested that GOB reviews and moderate the up-rate of the wage base. - It is requested that gob takes step to get CLT amended, etc. - It is requested that GOB takes step to get CLT amended, etc. |
- Labour Law - Article 255 of CLT (Consolidacao Das Leits Da Tarabalho) - Constitution Article VII, Paragraph xiii - CLT Article 58 - CLT Article 130 - CLT Article 129 - CLT Article 149 - CLT Article 462 - Social Security Insurance Laws of Various Kinds |
| (Action) - The minimum wage has gone up each year, at the revised rate dictated by the inflation rate in the preceding 12-months and the GDP growth rate of the last but one year (or 2.7% in 2013 over 2011, pursuant to Decree 12382 dated 25 February 2011, while the inflation rate is based on the National Consumer Price Index (INPC), published by IBGE (Instituto Brasileiro de Geografia e Estatistica) Brazilian Institute of Geography and Statistics. - Minimum wage went up to R$415 or by 9.2% since 1 March 2008, and exceeded 8.6% of 2007. - Federal Minimum Wage (nominal) has gone up by 14.1% since January 2012. - Federal Minimum Wage (nominal) has gone up by 9.0% since January 2013 (From monthly R$622 to R$678)(R$1.00 approximates 42 yen.) - According to "the 13th JETRO Research made during October through November 2012 on Japanese Affiliated Enterprises entering Mid-South America", the effective answer to the Questionnaire was received from 141-Japanese affiliated enterprises operating in Brazil, 75.1% of them responded: "the spiraling labour cost is the most serious problem that worries the Japanese affiliated officers". - Extended National Consumer Price Index (IPCA) traced the downward curve since the latter half of 2011, until it reached 4.92% in June 2012. Since then it gradually went up to reach 6.15% in January 2013, exceeding 6.0%. Especially, the inflation rate for the basic needs package has gone up annually to 10% or more, affecting low-income earners. |
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| (8) Downward Rigidity of Wages | - Employees' wages are rigid as regards downward adjustment. GOB raises the minimum wage rate by reflecting the inflation rate in the preceding year in addition to the growth rate of GDP. However, there is a limit to pass on the wage increase to the sales price. As it stands, sooner or later, MFS is unable to continue its business operation on a viable basis. - Employers are neither able to make substantive wage reduction nor dismiss employees without huge amount of premium severance payment. It not only heavily impacts profitability but also narrows the choice for the business strategic planning. - Proportionate to the annual inflation rate, employers must raise wages unconditionally in each year. Union determines the amount of business trip allowance. - Reduction in wages is prohibited by law, be it by change of job description from managerial to rank and file in the process of interdepartmental staff move, employers' business performance, personnel evaluation, shrinkage of work-hours from operational difficulty. - On approving wage reduction. The law forbids wage reduction even based on a personnel evaluation. This is a heavy burden upon enterprises. - Amidst vacillating operational environment, internally, and externally, employees' wages are protected from reduction. Along with the collective bargaining, wages keep going up. |
- It is requested that GOB takes steps to: -- liberalise the downward adjustment of wages, and -- remove the obligations to raise wages to the inflation rate, and completely liberalises wage increase negotiation between the labour and employers. - Apart from the premium severance payment, without changing the automatic wage increase scheme and the generally accepted idea, the competitive edge of the nation goes nowhere but down. - Apart from labour law, there are numerous union defined rules, heavily costing employers. Its operation should be best left to each enterprise - It is requested that GOB takes step to get CLT amended. - It is requested that GOB takes step to have CLT amended, etc. - It is requested that GOB takes step to have CLT amended, etc. |
- Labour Act - Social Security Insurance Laws of various kinds |
| (Action) - It is not possible to reduce wages unless by collective bargaining under the collective labor agreement. |
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| (9) Irrational Payment of FGTS (Severance Pay Fund) to Expatriates Overseas | - In Brazil enterprises set aside 8% of the total monthly wages as reserve fund for Severance Pay Fund (FGTS). "In the event an employee is discharged without justifiable reasons", enterprises makes additional 40% payment as penalty. Upon return of an expatriate back to the home country, payment is made to the returned expatriate inclusive of the 40% additional payment. | - For the overseas expatiate, the "Return" to the home country means return to the permanent domicile company, and do not correspond to "discharge without justifiable reasons". It is requested that GOB takes steps to amend the law, to remove the provision that requires additional 40% payment. | - CLT Article 478. |
| (10) Complex/Delayed Acquisition of Motor Vehicle Driver's Licence | - GOB compels the practical training at driving school for 20-hours or so to the holders of Japanese driving licence. Moreover, the explanation given at DETRAN (Departamento Estadual de Transito or State Traffic Department), etc. is ambiguous each time, so that the applicant is unable to tell what is formally required for the acquisition of the driver's licence. In addition, the applicant must speak and negotiate in Portuguese. In effect, the acquisition of the driver's licence is no easy matter. | - It is requested that GOB: -- establishes a clear-cut guideline addressed to foreigners for acquisition of drivers licence, and -- provides the assistance. |
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| (11) Frequent Occurrences of Labour Disputes | - Workers' Right is exceptionally strong. Anything can be a cause to trigger the court cases. - Moreover, labour litigations are abundant. Some litigation is instituted by workers with no direct employer/employee relations. There can be no preventive measures. |
- It is requested that GOB takes steps to heighten the moral of its people. - Review of the excessive-labour protection. |
- CLT - CLT (Decreto-Lei 5452/1943) (Labour Act, Executive Order) - Articles 477-491 of The Consolidation of Labour Laws (Consolidacao da Leis do Trabalho) (CLT) of President Decree No. 5452 dated 1 May 1943 - Social Security Insurance Laws of various kinds |
| (Action) - The Bill No.5843 amending the Labor Code No.618 passed CDD, pending deliberation at the Senate. The Bill requires application of CLT in the absence of agreement between employees and employers. - The number of cases brought to the Labor Court has climbed each year. In 2004, 2.18 million cases were brought to the Appellate Courts while the number of cases brought to the district labor courts tripled during 1990 and 2004. - In 2004, summary proceeding was established to adjudicate labor disputes up to 40 times the minimum wage in order to expedite the labor disputes. - Brazilian CLT prescribes in great details the rights and obligations in the context of employment agreement and is restrictive on negotiation for dismissal and terms of employment. Furthermore, employees are excused from assuming the cost of legal proceedings. - The Brazilian CLT is spelt out on the principle that workers are socially placed in a weaker position than employers with the thrust to protect workers. |
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| (12) Imperative Registration in Industrial Union | - CLT's requirement to register employees in the Craft/Industrial Unions makes it impossible for an employer to harmonise revisions in wages and working conditions across the board within its enterprise. Different standards among employees are sources of unhappy relations among workers and can be a cause for a labour complaint. - Trade Union to which an enterprise belongs unilaterally decides the rate of wage raise totally without regard to the operational performance of individual employers. Employers are unable to run their business flexibly, by reflecting the status of business operation, individual workers' aptitude to work, and their future career development programme. |
- It is requested that GOB gives a freedom within certain bandwidth to enterprises with a clearly defined personnel evaluation policy and Key Performance Indicator of their business. (As it stands, the employment gets less stable along with the gain in service years.) | - Labour Act |
| (13) Obligation to Employ Indigenous Personnel | - More than two-third of the total employees must be represented by the Brazilian both in wages and in number. It is difficult for Small-Medium Enterprises (SMEs) to satisfy these requirements. - Employers are compelled to maintain the wage ratio between the expatriates and the indigenous employees within the certain criteria. |
- It is requested that GOB gets the CLT amended. - It is requested that GOB gets the CLT amended. |
- Decree 5598/2005 |
| (14) Compulsion of Trainees' Employment | - While CLT compels enterprises' acceptance of trainees, the terms and conditions (i.e. requisite numbers, training period, trainees, training period, restricted work (exclusion of hazardous work, mediator, regional characteristic, operational status, etc.) are not tailored to actual regional circumstances, status of management, etc. - GOB allocates trainees (5%-15% proportionate to the operational scale). In 2014, GOB tightened the rule so that an MFS accepted 58-trainees. Due to the GOB's specific instructions, the trainees are prohibited from working in the production line, so that all costs incurred mean MFS's straight out of pocket expenses. |
- It is requested that GOB: -- deregulates various rules and estrictions, and -- removes the fines scheme. - It is requested that GOB reviews allocation rate and restriction on the on-line work. |
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| (15) Restricted Despatched Workers' Employment Period | - The term of employment for dispatched temporary workers is only for 6-months at a maximum. It is difficult to adjust the workforce timely in a country where the labour cost is high and economic conditions dramatically change. | - Provisional Measure 2076-32 |
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| (Action) - Since May 2001, GOB has authorized temporary workforce under the name of part labor limited only for 6 months maximum. |
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