Feb 10 • 16:28 UTC 🇧🇷 Brazil Folha (PT)

Government requests annulment of injunctions against decree changing rules of VR and VA

The Brazilian government seeks to reverse court decisions that suspended changes to meal and food benefit regulations.

The Brazilian Attorney General's Office has filed a lawsuit in the Federal Regional Court - 3rd Region (TRF-3) asking for the annulment of favorable injunctions issued to five meal and food benefit operators. These operators had successfully obtained court orders that suspended a government decree aimed at changing the regulations surrounding meal vouchers (VR) and food allowances (VA), which are crucial for many workers in Brazil. This legal action underscores the government's commitment to moving forward with reforms intended to enhance market efficiency and reduce unfair charges.

According to the federal government, these judicial decisions have delayed the implementation of essential reforms designed to address existing market distortions, particularly the excessive fees charged by supermarkets and restaurants as compensation for discounts offered to businesses for entering into contracts with VR and VA operators. The decree, signed in November of the previous year, was an implementation of a law passed by Congress in 2022, which aims to create a more equitable operational framework for meal and food benefit providers, ensuring that workers receive better support.

One of the key changes instituted by the decree included capping the fees charged to food vendors at 3.6%, alongside a reduction in the payment processing time from 30 days to a more manageable duration. These measures are expected to not only alleviate the financial burden on retailers but also strengthen the meal and food benefits ecosystem for millions of Brazilian workers who rely on such programs for daily sustenance. The outcome of this legal battle could have significant implications for the future of employee benefits and market fairness in Brazil, highlighting the ongoing tensions between government regulation and the interests of private operators in the sector.

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