a. New or Expected Developments
The basic principles of labor relations in Brazil are contained in the Labor Code, “CLT” (Consolidação das Leis do Trabalho), enacted on 1 May 1943. Although it has been alte-red and amended over the years, the Labor Code is outdated in several respects as it was enacted at a time, which was very different to the social and economic realities of the present day. From time to time, the idea of a major review of the Labor Code is raised at a political level.
Currently, there is a bill of law in the Brazilian Congress, which intends to update various aspects of the Brazilian labor system. It is part of a broader national project to change structural barriers and create a friendlier environment for business. It has been called the “labor reform” and aims at providing enforceability of negotiations with the Union over some matters regulated by law.
We do not foresee, however, significant change in the matter under discussion (em-ployee versus independent contractor). Whenever an independent contractor is treated as an employee, there will be a high risk of reclassification of the independent contractor as an employee.
b. Recent Amendments to the Law
Law 13.352/2016, effective as of 26 January 2017, regulates a partnership relationship between hairdressing salons and stylists, manicurists and other professionals. Despite the constitutionality of this law, it has already been challenged in the Supreme Federal Court and may be used as a parameter for other categories.