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IMPACT – MEDIUM
What is the change? Brazil has introduced digital work booklets that can be obtained online without having to make an in-person visit.
What does the change mean? Work booklets must be obtained from the Ministry of Economy for foreign workers to begin working on local payroll in Brazil, and the change is expected to make the admission process easier. Companies will no longer need to include the work booklet number and PIS (social contribution tax) number when adding someone to local payroll, and will instead be able to do this by providing only the employee’s CPF number (taxpayer ID).
Background: The introduction of digital work booklets, or e-CTPS, is part of a broader government effort to improve internal procedures and simplify the admission process. The idea for digital work booklets has been discussed for several years, and employers have been expecting their arrival. The program will allow companies to use Brazilian tax ID numbers to submit online applications for admissions. Officials have also created a digital app that enables employers to check contracts and labor condition requirements.
Analysis & Comments: The introduction of digital work booklets is good news for companies in Brazil because it is expected to speed up the overall admission process. It is possible, however, that there will be delays associated with the new system and employers should be prepared to make adjustments if necessary.
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