As the constant changes in the region can affect companies’ operations, for effective decision making, it is vital to have updated information about the employment landscape in each of the jurisdictions.
In this quick overview, the Employment & Compensation group presents the main recent regulatory developments in Latin America, highlighting critical issues to consider.
It has become clear that flexibility is currency in the new working world and legal frameworks are evolving to catch up with the changing working culture. Four-day work-weeks, flexible working arrangements and the right to disconnect are all on offer to employees, giving the opportunity for better work-life balance, and giving employers a competitive edge in talent retention.
On 3 July 2023, the Brazilian president sanctioned Law n. 14,611/2023, which aims to ensure equal payment for women and men who perform the same activities. The new regulation also creates greater sanctions for employers.
Artificial intelligence (AI) continues to transform the workplace. Much like in countries across the globe, the benefits of new AI technology are gaining traction in Latin America. However, employers should be aware of its risks, particularly in our regions’ context
Under Normative Rule 2,139, labor lawsuits will only need to be reported in the eSocial system starting July 2023. It may be understood that companies will not be required to include all ongoing labor lawsuits but only lawsuits with decisions no longer subject to appeal issued after the new July 2023 deadline, as well as those with impacts on employment obligations or tax, severance fund or social security payments.
Following the ruling issued on 8 June 2022, which determined that collective terminations require union involvement, Brazil’s Supreme Court has published on 25 April 2023 a new decision clarifying that such requirement applies to collective terminations implemented after 14 June 2022. The Supreme Court decision states that “prior union intervention is an essential procedural requirement for the collective termination of workers, which is not to be confused with prior authorization by the union or the signing of a collective agreement”.
Join us for a four-part webinar series as our US moderators welcome colleagues from around the globe to share the latest labor and employment law updates and trends. US-based multinational employers with business operations in Asia Pacific, Europe, the Middle East and Africa, and the Americas regions will hear directly from local practitioners on the major developments they need to know, and come away with practical tips and takeaways to implement.
Burnout in the workplace has become more widely recognized throughout the region. While workforce transformation is not a new concept for global organizations, the pandemic has forced us to rapidly adapt our standard ways of working and how we engage with employees, to ensure employee retention and the long-term viability of the business.
Per a study recently developed by Gallup, 43% of the world’s workers are experiencing daily stress and are, therefore, at risk of developing burnout. However, it was only recently that the World Health Organization included it as an occupational disease, which means that companies must be even more prepared to address and manage burnout cases properly. Lack of policies and protocols may aggravate risks for lack of proper employee support. Furthermore, many Latin American countries have undergone complex legal changes, which in many cases resulted in new regulations to protect employees in these situations.
With increased regulatory scrutiny and the emergence of employee activism, companies have experienced an elevated risk of trade secret disclosure from current or former employees acting as putative whistleblowers. In this episode, Aaron Goodman (Partner, Los Angeles) discussed key factors companies should consider in balancing their trade secret interests against the protections afforded to whistleblowers, with a focus on recent whistleblower laws across the globe.
In this report, we take a closer look at Latin America’s I&D landscape through the eyes of our local experts. While legal frameworks aimed at addressing inequality in the workplace have been slow to evolve, organizations in LATAM are getting ahead of lawmakers, implementing more evolved I&D strategies as they seek to respond to stakeholder and shareholder demand and to attract the next generation of workers