Post by account_disabled on Mar 12, 2024 21:33:59 GMT -6
Provisional Measure 905/19 , which creates the Green and Yellow contract, does not just represent an attempt to boost job creation by reducing labor costs. It also brings more legal security to entrepreneurs.
Disclosure
According to a lawyer, the MP will bring greater security to entrepreneurs
This is what lawyer Eduardo Ferracini understands , partner at Rocha Ferracini Schaurich Advogados. For him, changes to the Profit Sharing (PLR) payment rule may enable more transparent relationships between employers and employees.
This is because, among other changes, the MP allows individual negotiations between the parties, which can speed up the process. Payments may also be exempt from collection.
“Until then, agreements required Portugal Mobile Number List signature between employees and the employer in the year before the benefit, with clear and objective rules for the plan. With the measure, the plan must be signed before payment, not necessarily in the previous year. This way, companies can sign the agreement with more defined goals”, explains the lawyer.
The MP also allows PLR values to be defined in direct negotiations between workers' committees and companies, eliminating the need for union participation, as currently required by law. This, according to Ferracini, will guarantee “more security for employees who want to undertake”.
Green and Yellow
The Green and Yellow contract was launched on the 11th. The initiative, which aims to create 4.5 million jobs over three years, was sent to Congress through a Provisional Measure.
The proposal, which will focus on young people between 18 and 29 years old, consists of an attempt to boost job creation by reducing labor costs by between 30% and 34%. To this end, companies will be exempt from the employer's INSS contribution (20% of the salary), the “S” System rates and the education salary.
Furthermore, the contribution to the FGTS will fall from 8% to 2% and the value of the fine may be reduced from 40% to 20% of the benefit salary.
One of the most controversial points of the MP concerns the 7.5% tax on unemployment insurance, a fee that will finance the entire program. This is because the government intends to generate revenue of around R$12 billion in five years through the collection. The value alone is higher than the cost of the program, estimated at R$10 billion in the same period.
Disclosure
According to a lawyer, the MP will bring greater security to entrepreneurs
This is what lawyer Eduardo Ferracini understands , partner at Rocha Ferracini Schaurich Advogados. For him, changes to the Profit Sharing (PLR) payment rule may enable more transparent relationships between employers and employees.
This is because, among other changes, the MP allows individual negotiations between the parties, which can speed up the process. Payments may also be exempt from collection.
“Until then, agreements required Portugal Mobile Number List signature between employees and the employer in the year before the benefit, with clear and objective rules for the plan. With the measure, the plan must be signed before payment, not necessarily in the previous year. This way, companies can sign the agreement with more defined goals”, explains the lawyer.
The MP also allows PLR values to be defined in direct negotiations between workers' committees and companies, eliminating the need for union participation, as currently required by law. This, according to Ferracini, will guarantee “more security for employees who want to undertake”.
Green and Yellow
The Green and Yellow contract was launched on the 11th. The initiative, which aims to create 4.5 million jobs over three years, was sent to Congress through a Provisional Measure.
The proposal, which will focus on young people between 18 and 29 years old, consists of an attempt to boost job creation by reducing labor costs by between 30% and 34%. To this end, companies will be exempt from the employer's INSS contribution (20% of the salary), the “S” System rates and the education salary.
Furthermore, the contribution to the FGTS will fall from 8% to 2% and the value of the fine may be reduced from 40% to 20% of the benefit salary.
One of the most controversial points of the MP concerns the 7.5% tax on unemployment insurance, a fee that will finance the entire program. This is because the government intends to generate revenue of around R$12 billion in five years through the collection. The value alone is higher than the cost of the program, estimated at R$10 billion in the same period.
