Beginning the series of articles on the changes implemented by Executive Order No. 905, published on Tuesday, November 12, we review below changes in the rules for creating and paying a Profit Sharing Plan (PLR).

Continuing the series of articles on the changes implemented by Executive Order No. 905, published last Tuesday, we review below the changes regarding the payment of bonuses by companies to their employees.

It is increasingly important for publicly traded companies to dedicate themselves to fully complying with the obligations imposed by current laws and regulations, keeping themselves up to date, and having an adequate Investor Relations Department and legal support structure. Important changes have been observed in sanctions rules, as well as a significant increase in the obligations to be fulfilled, which increases the risks of non-compliance. We emphasize the sanction actions of the Brazilian Securities and Exchange Commission (CVM) for companies listed as public companies and the regulations of B3 S.A. - Bolsa, Brasil, Balcão (B3) for companies listed in the B3.

In addition to instituting the Green and Yellow Employment Contract and implementing various significant changes in labor and social security laws and regulations and in the rules regarding payment of Profit Sharing, Executive Order (MP) No. 905, published last Tuesday, November 12, amended article 224 of the Consolidated Labor Laws (CLT) relating to the working hours of bank employees.

One of the most important changes brought about by Federal Law No. 13,874/19, known as the Economic Freedom Law and arising from the conversion into law of Executive Order No. 881/19, is the waiver of prior licensing for the exercise of economic activities defined as being “low risk."  Subsection I of article 3 of the law provides for the possibility of waiving the presentation of prior licenses, authorizations, registrations, or permits for the regular operation of low-risk economic activities that may be performed by any individual or legal entity essential to Brazil’s development and economic growth.

In an extra edition of the Official Federal Gazette of September 20, Law No. 13,874/19 was published, establishing the Declaration of Rights of Economic Freedom, arising from Executive Order No. 881. Although the law does not explicitly mention its application in environmental law, we must understand that this is a transdisciplinary branch and permeates the discussion of various other areas. For this reason, the Economic Freedom Law will also be applied in environmental issues.