SAO PAULO (Reuters) – Brazilian President Michel Temer on Friday signed into law a bill approved by the Congress last week to allow companies to outsource jobs, a measure fiercely opposed by unions.
This is one of the first moves by the government to reform the country’s labor laws, considered outdated and excessively costly to businesses. But Temer vetoed some of the articles approved by the Congress, partially addressing criticism from labor leaders.
Brazil’s government sees the bill as a key measure to create new jobs and help pull the country from a two-year recession, its worst ever.
One of the aspects of the new legislation that was changed by the president refers to the time companies could use outsourced labor in a specific function. That period was limited to nine months where the version from Congress had no limits on the outsourcing duration.
Temer also included in the law a requirement that temporary workers be given pay and working hours similar to staff workers who perform the same kind of job.
(Reporting by Eduardo Simões; Writing by Marcelo Teixeira; Editing by Cynthia Osterman)