IMPACT – HIGH

What is the change? In a move that simplifies the documentation process for companies bringing in foreign workers, the Brazilian Ministry of Labor is now accepting the Official Gazette (“Diário Oficial”) as proof of an approved Work Visa in order for foreign workers to get a Brazilian Work Booklet. The change allows Brazilian employers to register foreign employees for payroll more quickly.

What does the change mean? These changes will streamline the registration process. Foreign employees can obtain the Brazilian Work Booklet even before registering their Work Visas with the local Federal Police.

  • Implementation timeframe: The new rule has been approved, but local authorities are still in the process of fully adopting it.
  • Who is affected: Foreign employees applying for Work Visas that require their salaries to be paid in Brazil (Work Contract Visa holders under Normative Resolution # 99).
  • Impact on processing times: The changes will simplify the document requirements for the acquisition of Work Booklets.
  • Next steps: Once the local Brazilian authorities start to process the booklets under the new rules, Brazilian companies will be able to get their foreign employees on board more quickly.

Background: Previously, a foreign employee arriving in Brazil with an approved Work Visa was required to demonstrate proof of registration with the local Federal Police before obtaining a Brazilian Work Booklet (CTPS). This process often hindered the employer’s ability to quickly put the foreign employee on the local payroll.

Under the new rule, proof of registration will not be required if the applicant presents a certified copy of the Official Gazette confirming his or her personal information, such as the applicant’s complete name, parents’ names, work visa category and other details. To implement the rule, authorities are adjusting the Official Gazette to contain this required data.

In another improvement, local authorities have put in place systems to issue the new Work Booklets through an electronic system. They have confirmed that they will continue to use the manual system until they have worked through the pending stock of documents under the old system. BAL will continue to follow this new system and will report further improvements as they develop.

BAL Analysis: The acceptance of the Official Gazette is a positive change that will speed the process for companies to start foreign employees in Brazil. In addition, the Ministry of Labor’s move to an electronic system for processing and printing Brazilian Work Booklets is a welcome development that should further improve services.

This alert has been provided by the BAL Global Practice group in Brazil. For additional information, please contact brazil@bal.com.

Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.