Sectors call for separation of debates on 6x1 shift and payroll tax exemption
Business entities argue that discussions regarding the potential end of the 6x1 work shift and payroll tax exemptions should not be linked.
Brazilian business entities are advocating for discussions surrounding the possible end of the 6x1 work schedule and payroll tax exemptions to be treated separately. Business leaders prefer to postpone any changes to work hours until after the upcoming elections or to propose alternatives that do not require a change in the work schedule. According to various business associations interviewed by Folha, the focus should instead be on modernizing labor relations, as they believe that merely providing tax relief will not fully offset the impacts of the proposed constitutional amendment (PEC) that aims to alter working hours.
The Confederation of National Industry (CNI) is among the organizations that argue against discussing payroll tax exemption as a compensation mechanism, citing that the two discussions each have distinct impacts and characteristics. Similarly, the Parliamentary Front for Agriculture (FPA) supports this separation of discussions. They express concerns that not all businesses facing potential cost increases would benefit equally from any tax relief measures, suggesting that the proposed changes could have uneven effects across different sectors of the economy.
Furthermore, the ongoing debate reflects broader issues within Brazil's labor market, highlighting the complexity of labor relations and the impact of policy changes on various industries. The outcomes of these discussions, especially in the context of the upcoming elections, could significantly influence the direction of labor laws in Brazil and the economic landscape for businesses in the country. It remains crucial for business entities to collectively ensure that any proposed changes are thoughtfully considered and aligned with their stakeholders' interests.