Despite recent changes allowing more flexibility in employment relations, Brazilian labor law is still very strict. This imposes specific concerns and caution on companies that need to implement compliance policies through internal probes

On this issue | September 2019

Uncertainty regarding the taxation of Stock Options Plans

Uncertain taxation of Stock Options Plans

Share-based compensation can be a good incentive to employees and officers. In Brazil, however, companies should pay attention on how to structure SOPs since its characteristics lead to different labor, tax and social security treatments. Until...

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Arbitration for individual labor disputes – still a controversial issue

Arbitration and labor disputes

Settling labor disputes through arbitration has historically been virtually impossible in Brazil (because deemed illegal). Recent changes in law have opened room for arbitration that may contribute to reducing litigation and the number of lawsuits.

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Employment issues arising from internal investigations

Carrying out an investigation

As a new culture of internal probes emerges, companies have to tread carefully to avoid undue exposure of employees participating as witnesses or who are under investigation. Employment-related aspects, sometimes unwritten, must be complied...

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Reducing the risk of labor liability for shareholders

Less risk of labor liability

New laws and precedents are reducing the risk for shareholders to be held liable for companies’ labor debts. However, most labor case laws still apply rules focusing on the vulnerability of employees and thus increasing investors liability....

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Financial compensation in internal investigations

Should whistleblowers be compensated?

Companies are establishing programs with financial compensation for whistleblowers as an incentive for collaboration in internal investigations. In Brazil, such monetary encouragement has been under public scrutiny and facing criticism but there...

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