New Legislation Enacted
Under a new law, known as the Economic Freedom Act (Law 13.874/2019), which was enacted on September 20, 2019, and is already in effect, all employees in Brazil must have an employee booklet (CTPS), which includes employee’s personal information and employment history. Additionally, the new law introduced several changes to the format, content, and required updates of the CTPS. Among other changes, the new CTPS will be issued only electronically (except in some circumstances) and will display only the employee’s taxpayer identification number and no other types of identification. Employers will have five business days to update the CTPS (up from the former 48-hour requirement), and the updates will eventually be made electronically.