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Labor Newsletter 4 – New Guidelines on Service Outsourcing and Temporary Work

24 . March . 2017
Labor Newsletter 4 - March

New Guidelines on Service Outsourcing and Temporary Work

On Wednesday, March 3rd, 2017, the Brazilian Chamber of Deputies approved the main text of Draft Law no. 4,302 from 1998, which discusses service outsourcing and temporary work. The draft, which was presented by the Executive Branch in 1998, is still pending presidential sanction, so it can enter into force.

Nowadays, in the absence of specific legislation on service outsourcing, Labor Courts have been ruling the matter, especially through Precedent no. 331 from the Superior Labor Court, which restricts service outsourcing to three specific situations: temporary workers service agreements, security and cleaning, as long as these are non-core activities, meaning, activities that are not essential to the development of the company’s corporate object.

Regarding service outsourcing, there is provision of its use for both private companies and public administration companies, as well as the subcontracting of employees for the performance of services. The sanction of the Draft Law will also imply the permission, for the he company receiving services, to extend some benefits to outsourced workers (that are granted to actual employees), risk-free from the characterization of employment relationship, such as medical and outpatient assistance and offering them the same meal that is served to employees.

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