Ministry of Labor - extinction and forecasts

January / 2019

On January 1, provisional measure no. 870/2019 was signed, establishing the basic organization of the Presidency Organs and Ministries, and the termination of the Ministry of Labor, a topic that had been widely discussed.

In effect, the Provisional Measure provides for the reassignment of the competencies to other Ministries, such as Justice and Public Security (labor standards, union letters), Citizenship (vocational training) and Economics (employment generation, management of FAT and FGTS resources).

The extinguished Ministry of Labor had strong representation and performance, autonomy to deliberate and supervise matters related to labor relations, as also a fundamental role in formulation of public policies for the strengthening of these, aiming to foster equality and balance within the inequalities in national level.

If, on the one hand, according to the Government, this dismemberment has the objective of "wiping out the public machine", aiming at optimizing public costs, governance and modernization, on the other, there are many criticisms on its legality, based on the Constitution of the Republic and International Labor Conventions.

This is because, with "expectations" of reduction of the labor relations inspections, a prominent function of the extinguished organ, one could think of an increase to the noncompliance with the legislation and consequent increase of labor demands in the judicial scope, going against the numbers / data derived from the Labor Reform.

In this transition scenario, in view of the promise that, despite their extinction, the duties will be maintained with due rigor, it is up to the employers to act diligently and cautiously,
seeking to verify the application of the legislation in force to the labor procedures adopted.

Vernalha, Di Lascio, Mesquita & Associados is at the disposal of its clients for more information on the subject.