Government proposal wants to facilitate and extend term contracts. What can change?

Among the planned changes are the widening of the maximum duration of the right term contracts and the end of restricting term contracts to small and medium enterprises.

The government is preparing to review work legislation, proposing a set of significant changes in the rules of term contractsboth right and uncertain. The draft, still subject to the approval of Parliament, resumes some standards in force before 2019 and introduces new ones.

Among the main changes is the maximum duration From the right term contracts, which may move from current two years to three. This change recovers the existing limit before the 2019 work reform. In addition, the new diploma eliminates the limit to the accumulated duration of renewalswhich currently cannot exceed the initial period of the contract. In the case of uncertain term contracts, the maximum predicted duration goes from four to five years.

The government also wants to allow the right term contracts with duration of less than one year (instead of current six months) In specific cases, such as the launch of new activities, execution of temporary projects or hiring young people looking for the first job. The Minister of Labor, Rosario Palma Ramalho, argues that these changes will contribute to decrease precariousness by allowing longer and stable initial contracts.

One of the most controversial news is the possibility of celebrating term contracts with people who never had a contract without a termwhat critics consider to be able to perpetuate precarious work situations. The measure is being criticized due to the risk of permanent turnover between employers without ever achieving an effective bond, says.

The draft also extends the possibility of term contracts in companies of any dimension in the two years following the beginning of activity, eliminating the current restriction to small and medium enterprises. Reformed by old age or disability may also be contracted at a time limit without a maximum limit of duration.

Other changes include Flexibilities for students with students On vacation, changes in the regime of very short -term contracts (which start to cover all sectors) and the reduction of the severity of the offense in case of non -preference for term workers in internal recruitments.