Does the reform contribute to creating a more sustainable labor market?
Posted: Wed Jul 09, 2025 8:51 am
The law will contribute to creating a more sustainable labor market to the extent that it is consistent with the fundamental principles of sustainability:
- Facilitate the balanced achievement of the interests of the parties. It is worth highlighting the law's attempt, expressly reflected in the preamble, to reduce the dual nature of the temporary buy phone number list nature of our labor market, promoting the creation of stable, quality employment. Thus, it appears to reduce the rights of workers with permanent contracts (dismissal after 33 days in contracts for the Promotion of Permanent Employment for terminations due to objective reasons) and, at the same time, tends to increase the rights of temporary workers, with measures such as increased severance pay for the termination of temporary contracts (from 8 days to 12), or limiting the maximum duration of a contract for a specific work or service, among others. In general, the reform's objective is to facilitate access to the labor market, incentivizing companies to use permanent contracts (hence the attempt to generalize the use of permanent employment contracts) and penalizing the use of temporary contracts (hence the increased costs of terminating them). The measures to reduce this duality are, in our view, acceptable but insufficient. A more sustainable labor market would be oriented toward unifying the legal treatment of all workers, thus eliminating the distinction between permanent and temporary workers.
- Facilitate the balanced achievement of the interests of the parties. It is worth highlighting the law's attempt, expressly reflected in the preamble, to reduce the dual nature of the temporary buy phone number list nature of our labor market, promoting the creation of stable, quality employment. Thus, it appears to reduce the rights of workers with permanent contracts (dismissal after 33 days in contracts for the Promotion of Permanent Employment for terminations due to objective reasons) and, at the same time, tends to increase the rights of temporary workers, with measures such as increased severance pay for the termination of temporary contracts (from 8 days to 12), or limiting the maximum duration of a contract for a specific work or service, among others. In general, the reform's objective is to facilitate access to the labor market, incentivizing companies to use permanent contracts (hence the attempt to generalize the use of permanent employment contracts) and penalizing the use of temporary contracts (hence the increased costs of terminating them). The measures to reduce this duality are, in our view, acceptable but insufficient. A more sustainable labor market would be oriented toward unifying the legal treatment of all workers, thus eliminating the distinction between permanent and temporary workers.