Brazil: government agrees to compensate workers placed on short-time working during health crisis

On Tuesday 1 April, Brazil’s economy ministry announced a series of emergency measures to protect jobs and wages during the Covid-19 health crisis (provisional measure no. 936). It sees the government allow workers on an employment contract (‘carteira assinada’) to receive compensation in the event their working hours are reduced or they cannot work at all. Companies that resort to this state support meanwhile will have to guarantee jobs for the entire period for which the support is requested, as well as for a period of equal length once that aid ends.