Government regulates Green and Yellow Labor Contract
Recently, the Special Office for Social Security and Labor of the Ministry of Economy issued new Ordinances to provide greater security to companies that choose to use the green and yellow employment contract, a new type of contract for young people up to 29 years old who start their career, established by Provisional Measure nº 905/2019 (MP 905/2019).
Initially, Ordinance No. 671/2019 of the Ministry of Economy confirmed the rule provided for in MP 905/2019 that companies are authorized to use the Green and Yellow Employment Contract as of January 1, 2020.
Finally, Ordinance 950/2020 establishes, among other details, the calculation of how many workers can be hired by the modality, the characterization of the first job and the calculation of the advance payment of the 13th salary and vacation of the worker.
We recall that MP 905/2019 is still under analysis by the National Congress, and in principle it will only be in force until March 11, 2020. Nevertheless, the Ordinances that facilitate the use of this new type of contract signal an intention on the part of the government to generate a favorable environment for the reactivation of the labor market and the creation of job vacancies.