Brazil's labour laws_March 2011

In 2009 21m brazilians opened cases against their

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
example, annual leave can only be taken in one or two chunks, neither of less than ten days. In 2009, 2.1m Brazilians opened cases against their employers in the labour courts. These courts rarely side with employers. The annual cost of running this branch of the judiciary is over 10 billion reais ($6 billion). Businessmen have long complained that these onerous labour laws, together with high payroll taxes, put them off hiring and push them to pay under the table when they do. When Luiz Inácio Lula da Silva, a former union leader, became Brazil’s president in 2003, they hoped he would be better placed than his predecessors to persuade workers that looser rules would be better for them. But scandals in his first term derailed these and other hoped-for reforms. More recently, as Brazil’s economy has boomed, with record numbers of jobs created, the need for change has seemed less pressing (see article ). The laws are “very up-to-date”, the labour minister, Carlos Lupi, said in December. He wants firing workers to become still pricier. That many of the new jobs are formal (ie, legally registered) is despite, rather than because of, the labour laws. The trend to formalisation is largely a result of the greater availability of bank credit and equity capital on the one hand, and recent changes that make it easier to register
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
micro-businesses on the other. And it coexists with two longstanding Brazilian weaknesses: high job turnover and low productivity growth.
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Sign up to access 24/7 study resources for your classes

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern