Labor & Social Security Law Department Report | National Executive Branch Decree No. 347/2020
Dear Sir or Madam,
The President issued the Necessity and Urgency Decree (“DNU”) No. 347/2020 yesterday, creating the Evaluation and Monitoring Committee of the Program of Emergency Assistance to Labor and Production created by DNU No. 332/2020.
The DNU No. 347/2020 decrees:
I. The creation of the Evaluation and Monitoring Committee that will be integrated by the members of the Ministry of Productive Development, Economy, Labor, and Social Security and the Federal Administration of Public Revenue (“Committee”);
II. Functions of the Committee:
a) Defining, based on technical criteria, the relevant facts that justify the inclusion of beneficiaries in the criteria of section 3 of Decree No. 332/20 (1).
b) The ruling, based on technical criteria and the definitions set forth in paragraph a), regarding the situation of the different economic activities and recommending or discouraging their inclusion in the criteria of section 3 of Decree No. 332/20.
c) The ruling, based on technical criteria and the definitions set forth in paragraph a), regarding specific orders that require special treatment and recommending or discouraging their inclusion in criteria of section 3 of Decree No. 332/20.
d) Proposing to the Chief of Cabinet of Ministers all measures leading to achieve greater effectiveness in the fulfillment of the goals of Decree No. 332/20.
III. Section 4 of DNU No. 332/2020 is amended allowing excluded individuals to apply for the benefits of the aforementioned DNU. The request will be evaluated by the Committee and the Chief of Cabinet, who will issue a ruling accepting or not the requests made by the companies.
IV. Section 5 of DNU 332/2020 is amended, granting decision-making powers to the Chief of Cabinet, to decide on the origin or not of requests made by companies on the grounds of the ruling issued by the Committee.
V. The DNU entered into force on April 6th, 2020.
(1) Decree 322/2020 established the benefits of (i) postponing or reducing up to 95% the payment of the employers’ contributions to retirement system; (ii) Compensatory Allowance to the Salary and (iii) REPRO (Production Recuperation Program). Section # 3 of Decree 322 describes the conditions for being eligible to those benefits:
a. Economic activities seriously affected in their geographic zones.
b. A significant amount of workers infected by COVID-19, or under mandatory isolation, or exempted to work for reasons related to COVID 19.
c. Significant reduction in sales after March 20th. 2020.
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