Economic Freedom MP: what is it and what changes for companies and employees?

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Economic Freedom MP: what is it and what changes for companies and employees?

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Approved in the Chamber of Deputies, on the last 14th of August, the Economic Freedom MP goes to the senate, where it will undergo a new round of analysis.

As it stands, the Mp project for economic freedom has as its main objective the debureaucratization of the country’s economic activities, which can influence:

  • work on Sundays;
  • electronic work card;
  • point record;
  • changes in low-risk activities;
  • e-Social;
  • regulatory abuse.

In August 2021, the Chamber of Deputies finalized the analysis carried out in the provisional measure (MP), which became popularly known as the Economic Freedom MP.

With the adjustments made and agreed to vote in the chamber, the text goes on to the Senate’s analysis.

If new adjustments to the project are needed, the MP for Economic Freedom returns to a new vote among deputies.

But, for the entrepreneur and professionals, what does this mean? What changes with the MP for economic freedom?

In theory, the project will become a major bureaucratic reduction on the economy’s activities in the country.

And in practice? To find out how this interim measure can impact the market as a whole, follow this reading to understand everything that changes with the Economic Freedom MP from now on!

What changes with the Economic Freedom MP?

Next, we will discuss the main points cited in the new version of the Economic Freedom MP, comparing them with the current model in professional management. Check out!

1. I work on Sundays

With the approved provisional measure, work is allowed on Sundays and holidays, with the difference that the rule on weekly rest for 24 hours changes to “preferably on Sundays”.

Currently, the Consolidation of labor laws style=”font-weight: 400;”> (CLT) has clarified the idea for the aforementioned rest “Coincides with Sunday, in whole or in part””.

For the employee and the companies, this presents itself as flexible workday so that the corporate benefit be applied also on other days of the week and not exclusively on Sundays.

Another example that the MP for Economic Freedom works, within this context, is that the double payment, on the days worked on Sunday, is revised as long as the professional has time off on another day. Furthermore:

  • there will no longer be a need to request permission from the government for work to take place on Sundays, as CLT demands today;
  • the employee will be entitled to a Sunday break for every 3 Sundays worked.

With that, companies can deal with more flexibility within their professional routines, just as employees can – presumably – achieve the balance between personal and professional life<span style=”font-weight: 400;”>.

2. Electronic work card

A widely discussed point in the Economic Freedom MP attests that, now, work cards are issued by the Ministry of Economy and, preferably, electronically.

And the project also foresees that the document will only be printed as an exception, in addition to a curious fact: the identification of the document will take into account only the user’s CPF.

For companies, some issues also change, such as:

  • now the HR sector will have the term of five working days after the employee’s admission to make the necessary notes has started;
  • the employee, in turn, must have access to this information within 48 hours after its admission.

A little more dynamism to the admission process, therefore, adding more ease and integration of professional data with the electronic work card.

Read too: When should I update the employee’s work card?

3. Time record

Nowadays annotation is a requirement for all types of companies with more than 10 employees.

However, the Economic Freedom MP preaches the need for registration of entry and exit, as a point control application, for organizations with more than 20 employees.

Furthermore, even though the gig economy is in evidence, it will not be beaten by the new provisional measure the way it went to the Senate. That’s because, the employee who perform work outside the establishment you will also have to register your point.

4. Changes to low-risk activities

Shoemakers, seamstresses and other professionals who develop activities considered to be of low risk no longer need to issue the business license.

It is worth mentioning that the Economic Freedom MP has not yet established all the activities that will fall under this category – there will still be an act by the Executive Branch on the matter, and taking into account the particularities of each district, municipal and state rule.

5. e-Social

The Economic Freedom MP also has evaluated regarding e-Social.

The idea, basically, is to end e-Social and add, as soon as possible, a new system that integrates and gathers all information on social security and labor obligations.

Read too: After criticism from the business community, eSocial should end by the end of 2021

6. Regulatory abuse

In a more technical aspect for companies, the MP for Economic Freedom delves into this issue based on the elaboration of the term “regulatory abuse”, which can be framed within the following situations:

  • from the creation of market reserves that favor only one group, harming the competing part of that group;
  • the development of standards that interfere with the entry of new competitors (whether national or foreign) in the market;
  • requirement for technical specifications that are unnecessary for a given economic activity;
  • establishment of artificial or even compulsory demands product or service. This includes the need to use notaries, records or registers;
  • place limits on the free formation of business companies or economic activities not prohibited by federal law.

As you may have noticed, the Economic Freedom MP has been actively working on adding more flexibility to the entrepreneur, as well as stimulating a collaborative economy.

This tends to influence the country’s economy in the medium and long term, although the proposal may still come up against the Senate vote.

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And then, the How did you find the MP for Economic Freedom project as it is? Share your points of interest and considerations on the subject below, in the comments field!

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