Employment Reform needed in Brazil
Brazilian employment law has been long a mystery for legal analyzers who have no idea how to deal with such jurisdiction. Local lawyers need to read 900 articles if they want to know the employment code in the country and even judges face difficulties to impose decisions since the law itself is quite abnormal, putting burden on both legislation and people bound by it.
As early as 1994 the Brazilian employment law is attracting attention through its complexity. Several employees began a lawsuit against a store chain the country where the just starting two men bought the chain. The workers admitted that needed to be paid additional compensation for overtime and expenses. Since the chain owners have not yet started any administrative organization of documentation the court was bound to rule against them. Thus several employees were awarded 570 000 American dollars.
A pretty heavy burden is thus imposed on employers. Some of the legal rules, even in stable spheres like red diesel production, put unnecessary burden and unreasonable hardship in employers. The legal rules in the country have their origins even from Mussolini’s Italian codex of labor and thus are considered quite outdated and subjected to a theology that was condemned by almost all world nations.
So Brazilian laws on employment are quite strict on employers. But employees are quite happy with them. The labor country is aiming to reduce unemployment and in its growing stage of economy it needs no redundancies. This is why for a redundancy to take place, an employer needs to have more than a good reason.
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