Catherwood LibraryILR School

Brazilian President Michel Temer has rolled out new regulations regarding the hiring process which constitute the most substantial changes made to Brazilian labor law in nearly thirty years. The regulations aim to decrease informal employment by small businesses in the country through making the formal hiring process more flexible for employers. With Brazil’s massive informal economy, the federal government has been unable to collect payroll taxes for a substantive portion of workers, leading the new administration to prioritize incentivizing employers to formally employ their workers as opposed to paying them under-the-table. In addition, the Brazilian unemployment rate recently reached an all-time high and legislators hope that easing hiring rules will lead to a notable decrease. Opponents of the reforms have concerns about workers’ rights and claim that the new regulations are incredibly intricate and will be difficult to implement in the near future given the legal complexities involved.