Consolidation of Labor Laws Brazil

Copyright 2001 Foreign Tax Law, Inc., Ormond Beach, Florida, Telephone (904) 253-5785

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May 1, 1943

Diario Oficial da Uniao (Brasil)

Consolidation of Labor Laws

Last amended October, 2000 - all amendments included

TITLE I

INTRODUCTION

Art. 1. This Consolidation lays down the rules which shall govern the individual and collective employment relations specified therein.

Art. 2. "Employer" (empregador) shall mean the individual or body corporate who or which assumes the financial risks of an undertaking and engages, pays and directs the work personally performed by persons in his employment.

(1) Exclusively for the purposes of employment relations, members of the liberal professions, philanthropic institutions, associations formed for purposes of sport and other non-profit making institutions which engage workers as employees shall be placed on the same footing as employers.

(2) If an undertaking or undertakings each of which if a body corporate in its own right are nevertheless carried on under the direction, supervision or management of another undertaking, thereby constituting an industrial or commercial group or a group belonging to some other economic activity, the principal undertaking and each of the subordinate undertakings shall be jointly responsible for the purposes of employment relations.

Art. 3. "Employee (empregado) shall mean any person who performs services other than casual services for an employer under the direction of the employer and in return for remuneration.

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Sole Subsection. No distinction shall be made on account of the nature of the employment or the situation of the worker nor between intellectual, technical and manual work.

Art. 4. Except as expressly provided to the contrary, "actual work" (servico efectivo) shall mean the period during which the employee is at the disposal of the employer, waiting for or carrying out orders.

Sole Paragraph. (Added by Law No. 4.072 of June 16, 1962) In the computation of the length of service for the purpose of indemnification and stability, the periods in which the employee was separated from the job due to military service or because of a labor accident shall be counted as time of employment.

Art. 5. Equal wages shall be paid for equal work without distinction of sex.

Art. 6. A distinction shall not be made between work performed in the establishment of the employer and work performed in the home of the employee, provided that the existence of the employment relationship is duly established.

Art. 7. Except where expressly provided to the contrary in a particular case, the provisions of this Consolidation shall not apply to the following persons:

(a) domestic employees, that is to say, in general, persons who perform services of a non-profit-making character for an individual or a family in their household;

COMMENT: This provision may have been prejudiced by Art. 7 of the Constitution of 1988.

(b) agricultural workers, that is to say, persons who perform work directly connected with agriculture and stockraising and are not employed in work which, on account of the manner in which it is performed or the purpose of the processes, can be classified as industrial or commercial;

COMMENT: This provision may have been prejudiced by Art. 7 of the Constitution of 1988.

(c) (Amended by Decree-Law No. 8,079 of October 11, 1945) public officials in the service of the Union, a State or municipality or supernumeraries employed in the various departments thereof;

(d) (Amended by Decree-Law No. 8.079 of October 11, 1945) employees of autonomous administrative bodies provided that they are covered by a system of protection in employment which guarantees them a situation similar to that of public officials.

Sole Paragraph. Repealed by Decree-Law No. 8.079 of October 11, 1945.

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Art. 8. In default of statutory or contractual provisions, the administrative authorities and the labor courts shall decide in each case on the basis of jurisprudence, analogy, equity or other principles and general rules of law, in particular labor law, and further, in conformity with customary practice and comparative law, but always in such a manner that class or private interests do not in any case prevail over the public interest.

Sole subsection. The ordinary law shall be a subsidiary source of labor law in so far as it is not incompatible with the fundamental principles of labor law.

Art. 9. Any act committed for the purpose of obstructing, rendering nugatory or evading the application of the provisions laid down in this Consolidation shall be automatically null and void.

Art. 10. Alterations in the legal status of an undertaking shall not affect the rights acquired by its employees.

Art. 11. (Amended by Law 9658 of June 5, 1998, effective June 8, 1998) The right of action on account of conditions resulting from labor relations shall prescribe:

I. in five years for an urban worker, up to the limit of two years after the termination of the contract;

II. in two years, after the termination of the labor contract, for a rural worker.

Paragraph 1. The provisions in this article shall not be applied to actions having as their objective records for purposes of evidence concerning Social Welfare.

Art. 12. A special law shall be enacted to lay down provisions relating to social insurance.

TITLE II

GENERAL RULES FOR THE PROTECTION OF LABOR

CHAPTER I

OCCUPATIONAL IDENTIFICATION

Division I

Work and social insurance books

Art. 13. (Amended by Decree-Law No. 926 of October 10, 1969) The employment and social insurance book shall be compulsory for any person accepting any employment, including employment of a rural nature, even temporary employment, and for self-employed persons carrying on a gainful activity.

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(1) (Amended by Decree-Law No. 926 of October 10, 1969) This article shall also apply to--

I. the owner, whether rural or not, who works on his own account or in a family undertaking (the latter expression being taken to mean the enterprise of the members of one family indispensable for their own subsistence and carried on in conditions of mutual dependency and collaboration).

II. persons who farm, as a family undertaking and without employees, an acreage not exceeding the rural standard acreage or any other limitation as to acreage fixed for each region by the Ministry of Labor and Social Welfare.

(2) (Amended by Decree-Law No. 926 of October 10, 1969) The employment and social insurance book and the corresponding declaration card shall conform to models prescribed by the Ministry of Labor and the Administration.

(3) (Amended by Decree Law No. 5.686 of August 3, 1971) In places where employment and social insurance books are not issued a person not in possession of such book may be permitted to remain up to 30 days in an employment or a remunerated activity, the undertaking being obliged to allow such person to report to the nearest office where such books are issued.

(4) (Amended by Decree-Law No. 926 of October 10, 1969) In the case referred to in paragraph (3)--

I. the employer shall provide the employee on engaging him with a document indicating the date of his engagement, the nature of the work, the wage and the manner in which it is paid;

II. if the employee is still not in possession of the employment and social insurance book on the date on which his employment comes to an end, the employer shall issue him with a certificate stating the background facts of the employment relation.

Division II

Issue of Work and Social Insurance Book

Art. 14. (Amended by Decree-Law No. 926 of October 10, 1969) The employment and social insurance book shall be issued by the regional labor offices, or, by agreement, by the federal, state, or municipal bodies for direct or indirect administration.

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Sole Subsection. (Amended by Law No. 5.686 of August 3, 1971) If none of the bodies referred to above are available, an agreement may be made with the trade union for the same purpose.

Art. 15. The employment and social insurance book shall be issued on the application in person of the applicant to the body issuing the book; applicants shall provide proof of their identity and make the necessary declarations.

Art. 16. (Amended by Law No. December 12, 1991) The employment and social insurance book (CTPS) shall bear a serial number, the date of issuance and pages for entries pertinent to the labor contract and to the interest of Social Insurance, and shall contain:

I. a photograph (full face, 3 cm x 4 cm);

II. forename and surname, date and place of birth and signature;

III. name, age and marital status of any dependents;

IV. number of naturalization document or date of arrival in Brazil and other data indicating the identity of the alien (where applicable).

Sole Subsection. The employment and social insurance book - CTPS - shall be issued on presentation of the following documents by the applicant:

(a) two photographs as stipulated in clause I above;

(b) any official document of personal identification of the interested party, in which data concerning the full name, affiliation, date and place of birth are contained.

Art. 17. If the applicant is unable to produce a suitable document identifying him, the employment and social insurance book shall be issued on the basis of verbal declarations confirmed by two witnesses and signed by the said witnesses on the first page.

(1) In the case of a young person under 18 years of age the declarations referred to in this article shall be made by the minor's parent or guardian.

(2) If the applicant does not know how to write or is unable to sign his name, his fingerprints or the signature of a person authorized by him shall suffice.

Art. 18. Repealed by Law No. 7.855 of October 24, 1989.


Art. 20. All entries concerning change of marital status and dependents of the bearer of the employment and social insurance book shall be made by the National Social

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Insurance Institution; only if this is impossible may such entries be made by the bodies competent to issue these books.

Art. 21. (Amended by Law No. 5,686 of August 3, 1971) When the spaces provided for entries and notes is unusable or full, the interested party must obtain another book, keeping the number and the series of the previous book.

(1) Repealed by Decree-Law No. 926 of October 10, 1969.

(2) Repealed by Decree-Law No. 926 of October 10, 1969.

Art. 22. Repealed by L.D. # 926 of Oct. 10, 1969.



Division III

Delivery of Work Books

Art. 25. Work books shall be delivered to the persons concerned personally against a receipt.

Art. 26. An industrial association, on application by its committee of management, may assume responsibility for issuing work books requested by its members and by other persons engaged in occupations of the same type.

Sole Subsection. No industrial association, on pain of the penalties instituted by this Chapter, may charge a fee for issuing a workbook; the delivery of workbooks to the association's headquarters shall be supervised by the regional office or other competent authority.



Division IV

Entries

Art. 29. (Amended by Law No. 7.855 of October 24, 1989) An employee shall be required to hand his work book over, in exchange for a receipt, to the employer by which he is recruited, and the employer shall have a period of 48 hours to enter in it, specifically, the date of his recruitment, the rate of remuneration and any special conditions of employment, if any, being able to adopt a manual, mechanical or electronic system, in accordance with instructions to be issued by the Minister of Labor.

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(1) (Amended by Decree-Law No. 229 of February 28, 1967) The entry relating to the rate of remuneration shall specify the wage, irrespective of the form of payment, whether in cash or in kind, and an estimate of the amount received by way of tips.

(2) (Amended by Law No. 7.855 of October 24, 1989) The entries in the work and social insurance book shall be made:

a) in the data-base;

b) at any time, upon request of the worker;

c) in the case of rescission of the contract; or

d) when necessary for verification for Social Insurance purposes.

(3) (Amended by Law No. 7.855 of October 24, 1989) Where an employer fails to comply with the provisions of this article, the offense shall occasion the drawing up of a writ by the Labor Inspector, who must, ex officio, notify the competent authority of the failure to make the entry, for the purpose of establishing the procedure for making the entries.

Art. 30. (Amended by Decree-Law No. 926 of October 10, 1989)Employment injuries

must obligatorily be entered into the injured person抯 book by the National Social

Insurance Institution.

Art. 31. The holder of a work book shall be entitled to present it to the competent authority so that the appropriate entries can be made; his request may not be refused or any charges made, other than those prescribed by law.

Art. 32. Entries relating to changes in the civil status of the holder of a work book shall be made on production of documentary evidence. Statements relating to dependents shall be recorded on the appropriate cards by the official responsible for matters of occupational identification at the request of the person making the statement, who shall sign against the entry.

Sole Subsection. The regional offices or competent authorities shall notify the National Labor Department of all changes made to work books.

Art. 33. Entries on registration cards and in work books shall be made consecutively, without abbreviations; any alterations, additions or other points likely to give rise to doubt shall be inserted at the end of each entry.

Art. 34. In the case of services in any occupation performed by the job, whether individually or collectively, with or without supervision by the other contracting party, the entry in the work book shall be made by the industrial association concerned or by the legal representative of its co-operative society.

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Art. 35. Repealed by Law No. 6.533 of May 24, 1978.

Division V

Claims on account of failure or refusal to make entries

Art. 36. Where an undertaking refuses to make the entries prescribed in article 29 or to return a work book that an employee has handed over, the employee may appear either in person or through the intermediary of his industrial association before the regional office or competent authority for the purpose of lodging a complaint.

Art. 37. In cases covered by article 36 arrangements shall be made to investigate the matter, after the complaint has been duly recorded; the provisions of subsection (2) of article 29 shall be observed, where appropriate, and notice shall subsequently be served on the employer by registered letter, if he persists in his refusal, summoning him to appear on a particular day and at a particular time to furnish explanations, return the work book or make the prescribed entries in it.

Sole Subsection. If the employer fails to appear, a note shall be made of his absence; he shall be deemed to be in default and to have admitted the accusation made against him, and the entry shall be made ex officio by the authority dealing with the complaint.

Art. 38. If the employer appears and refuses to make the entries demanded, a minute shall be drawn up recording his appearance and including the following particulars, inter alia, viz., the place, day and time of the drawing up of the minute and the name and address of the employer, who shall be granted a time limit of forty-eight hours, reckoned from the date of the minute, for submission of his defense.

Sole Subsection. On the expiration of the time limit fixed for defense, the file shall be submitted to the administrative authority of first instance in order that the necessary proceedings may be taken to complete the entries or that judgment may be given if the case is considered to be sufficiently clear.

Art. 39. If it is found that the employer's allegations cast doubt on the existence of the employment relationship or if it is impossible to ascertain by administrative methods whether such a relationship exists, the case shall be referred to the judicial machinery dealing with labor matters, in which case any proceedings arising out of the report of the offense shall be suspended.

(1) If no agreement can be reached, the conciliation and arbitration board shall give instructions in its award for the clerk to make the necessary entries once the matter has been settled and to notify the competent authority so that the appropriate fine can be imposed.

(2) The same procedure shall be followed in labor suits of all kinds if it is found that the necessary entries have been omitted from a work book, and in this case the judge shall give instructions for any entries that are not contested to be made without delay.

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Division VI

Evidential Value of Entries

Art. 40. A work book that has been duly issued and contains the proper entries shall be accepted as evidence in any matter for which identity documents are required to be produced, and more particularly--

(1) in any dispute before a labor court between the undertaking and the employee in connection with wages, leave or periods of service;

(2) for social welfare purposes, in connection with the registration of dependents;

(3) for the calculation of employment injury compensation.

Division VII

Registers of Employees

Art. 41. (Amended by Law No. 7.855 of October 24, 1989) In all activities it shall be compulsory for the employer to keep a register of his employees, possibly adopting books, files or an electronic system for the purpose, in conformity with instructions to be issued by the Minister of Labor.

Sole Paragraph. (Amended by Law No. 7.855 of October 24, 1989) The civil or occupational qualifications of each employee and also all particulars relating to admission to employment, duration and effective date of employment, holidays, accidents and other circumstances affecting the protection of the employee shall be entered in the said register.

Art. 42. All records or registration cards relating to employees shall be endorsed and attested by the regional offices or competent authorities.



Art. 45. Repealed L.D. # 229 of Feb. 28, 1967.

Art. 46. Repealed by L.D. # 229 of Feb. 28, 1967.

Art. 47. Any undertaking having in its service an employee who has not been registered in terms of article 41 or the sole subsection of that article shall be liable to a fine equal to the regional minimum wage for every employee not registered, the fine being increased by an equal amount for every repetition of the offense.

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Sole Subsection. Any other offense in connection with the registration of employees shall render the undertaking liable to a fine equal to half the regional minimum wage, which shall be doubled for every repletion of the offense.

Art. 48. The fines provided for in this division shall be imposed by the regional authorities of the Ministry of Labor.

Division VIII

Penalties

Art. 49. A person committing any of the following acts in connection with the issue, replacement or annotation of a work book shall be deemed to be guilty of a forgery and shall be liable to the penalties provided for in article 299 of the Penal Code:

(1) if he draws up any document which is false, either wholly or in part, or alters a document which is true:

(2) if he makes a false statement with regard to his own or any other person's identity, parentage, birthplace, address, occupation, civil status or dependents;

(3) if he uses a document that has been falsified in any way;

(4) if he forges a work book by altering it or making it himself, or sells, uses or possesses such a book that has been forged in such a way.

(5) if he makes any entry in a work book or employees' register with intent to deceive, or recognizes or affirms an untrue date of admission to employment in any suit or elsewhere.

Art. 50. If a statement made for the purpose of the issue of a work book or an entry in a work book is found to be false, the fact shall be reported to the authority which issued the book for the purpose of the necessary legal action.

Art. 51. (Amended by DL No. 229 of Feb. 28, 1967 and Law No. 7855 of Oct. 24, 1989) Any person, whether engaged in commerce or not, who sells or offers for sale any kind of work book identical with or similar to the officially adopted pattern shall be liable to a fine equal to 90 times the regional value of reference.

Art. 52. (Amended by Law No. 7855 of Oct. 24, 1989) Loss of, or failure to keep up to date the entries in, the employment and social insurance book through the undertaking's negligence shall render the undertaking liable to pay a fine equal to 15 times the regional reference value.

Art. 53. (Amended by Law No. 7855 of Oct. 24, 1989) An enterprise that receives an Employment and Social Insurance Book to make entries in it shall be liable to a fine equal to 15 times the regional reference value if he keeps the book for more than 48 hours.

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Art. 54. (Amended by Law No. 7855 of Oct. 24, 1989) An enterprise that, after being duly summoned, fails to appear in order to make entries in an Employment and Social Insurance Book of its employees, or whose reasons for refusing to do so have been disallowed as improper, shall be liable to a fine equal to 30 time the regional reference value.

Art. 55. (Amended by DL No. 229 of Feb. 28, 1967 and Law No. 7855 of Oct. 24, 1989) An enterprise contravening article 13 or any of the subsections of that article shall be liable to a fine equal to 30 times the regional reference value.

Art. 56. (Amended by DL No. 229 of Feb. 28, 1967 and Law No. 7855 of Oct. 24, 1989) Any industrial association charging a fee for delivering an Employment and Social Insurance work book shall be liable to a fine equal to 90 times the regional value of reference.

CHAPTER III

DIVISION I

PRELIMINARY PROVISION

Art. 57. The provisions of this chapter shall apply to all activities other than those which are expressly excluded, provided that the special provisions relating strictly to particular specified occupations which are laid down in Chapter I of Title III, shall be exceptions thereto.

DIVISION II

DAILY HOURS OF WORK

Art. 58. The normal hours of persons engaged in private employment of any kind shall not exceed eight hours a day, unless another limit is expressly fixed.

Art. 59. The normal hours of work may be increased by not more than 2 hours a day by an agreement in writing between the employer and the employee or by a collective contract of employment.

(1) (Amended by the Constitution of 1988) The agreement or the collective contract of employment shall specify the amount of the remuneration to be paid for overtime; the rate shall not be less than 50% in excess of the normal rate.

(2) The increased rate may be waived if, in pursuance of an agreement or a collective contract, overtime in one day is made up by a corresponding reduction in the hours of work on another day, so that the normal weekly hours of work are not exceeded and that the daily hours of work do not in any case exceed 10 hours.

Art. 60. In unhealthy occupations, which shall be deemed to mean those specified in the schedules mentioned in the chapter entitled "Industrial hygiene and safety" or any

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which may hereinafter be added to them by an order of the Minister of Labor, Industry and Commerce, prolongation of the hours of work shall not be permitted except under a permit issued in advance by the authorities competent with respect to industrial hygiene, which for this purpose shall make the necessary inquiries on the spot and examine the methods and processes of work, either directly or through Federal, State or municipal health authorities, with which they shall enter into an agreement for this purpose.

Art. 61. In the event of urgent necessity, the hours of work may be prolonged beyond the statutory limits or the limits fixed by agreement, in order to meet cases of force majeure or to carry out or complete work which cannot be postponed or failure to carry out which might entail manifest loss.

(1) In the cases covered by this article, the performance of overtime may be required, irrespective of any agreement or collective contract; notice of such overtime shall be given within 10 days to the authority competent for labor matters or, without prejudice to this notice, evidence of the necessity for the overtime shall be furnished on the occasion of an inspection before the expiration of the said time limit.

(2) In cases of overtime worked for reasons of force majeure, the remuneration for overtime shall not be less than that payable for ordinary hours of work. In other cases of overtime provided for in this article, the remuneration shall not be less than 25% higher than the normal rate, and the hours of work shall not exceed 12 hours a day unless another limit is expressly fixed by law.

(3) In the event of interruption of work due to an accidental cause or force majeure rendering work impossible, the hours of work may be prolonged to the extent necessary, but not more than 2 hours, on the number of days requisite to make up the time lost, provided that they shall not exceed 10 hours in the day and that they shall not be so prolonged on more than 45 days in the year; such making up of lost time shall be subject to authorization in advance by the competent authority.

Art. 62. (Amended by Law No. 8966 of Dec. 27, 1994, effective Dec. 28, 1994) The following shall not be included in the system provided in this Chapter:

I. Employees who perform work outside the establishment which is incompatible with a fixed time table; this shall be explicitly mentioned in the Employment and Social Insurance work book and in the register of employees;

II. Managers; the term "manager" shall be deemed to mean a person who performs managerial duties who are equivalent, for the purpose of this article to directors and heads of a department or of a subsidiary.

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Sole Paragraph. (Amended by Law No. 8966 of Dec. 27, 1994, effective Dec. 28, 1994) The system provided in this Chapter shall be applicable to the employees mentioned in item II of this article, when the salary of the manager, including the bonus, is less than the value of a respective effective wage increased by 40%.

Art. 63. A distinction shall not be made between employees and persons with an interest in the undertaking, and, except in the case of profits paid to partners in the undertaking, a share in profits or commission shall not exempt the person concerned from the applications of the provisions of this chapter.

Art. 64. In the case of an employee paid by the month, the ordinary hourly wage shall be obtained by dividing the monthly wage corresponding to the duration of the work, as specified in article 58, by 30 times the number of daily hours of work.

Sole Subsection. If the employee has worked for less than 30 days, the number of days actually worked in the month shall be substituted for the purposes of the calculation of the hourly wage.

Art. 65. In the case of an employee paid by the day, the ordinary hourly wage shall be obtained by dividing the daily wage for the hours of work specified in article 58 by the number of hours of actual work.

DIVISION III

REST PERIODS

Art. 66. A rest period of not less than 11 consecutive hours shall be granted between 2 days work.

Art. 67. Every employee shall be granted a weekly rest period of 24 consecutive hours, which shall be given wholly or partly on Sunday unless reasons of public interest or reasons arising out of urgent requirements of the work render another arrangement necessary.

Sole Subsection. In the case of services where Sunday work is necessary, except theatrical companies, a roster shall be drawn up on a monthly basis in conformity with a timetable, which shall be subject to inspection.

Art. 68. Work on Sunday, whether for the whole or part of the day, in accordance with article 67, shall be subject in every case to a permit issued in advance by the authority competent for labor matters.

Sole Subsection. This permit shall be permanent in the case of work which on account of its nature or for reasons of public interest must be carried on Sundays; the Minister of Labor, Industry and Commerce, shall issue instructions to specify the kind of work in question. In other cases a temporary permit shall be granted for a specified period, which shall not exceed 60 days on each occasion.

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Art. 69. In regulations governing the working of undertakings covered by this chapter, municipalities shall comply with the rulings laid down therein; the regulations issued shall not be contrary to the said rules or to the instructions issued for their administration by the authorities competent for labor matters.

Art. 70. Save as provided in articles 68 and 69, work shall be prohibited on the national and religious holidays as prescribed in the relevant legislation.

Art. 71. Every spell of more than 6 hours continuous work shall be interrupted by an obligatory break for rest or a meal; this break shall not be less than 1 hour and, except as otherwise provided by an agreement in writing or a collective contract, may not be more than 2 hours.

(1) In the case of a spell or more than 4 hours, but less than 6 hours, a break of 15 minutes shall be compulsory.

(2) The breaks for rest shall not be included in the hours of work.

(3) (Amended by DL No. 229 of Feb. 28, 1967) The minimum break of one hour for rest or a meal may be reduced by an order of the Minister of Labor, Industry and Commerce, if it is found, after consultation with the National Department of Safety and Health of Labor (DNSHT), that the establishment satisfies in every respect the requirements respecting the establishment of mess rooms and if the employees concerned are not required to work overtime.

(4) (Added by Law No. 8923 of July 27, 1994, effective July 28, 1994) When the break for rest or a meal provided in this article is not granted by the employer, he shall be obligated to pay for the corresponding period with a minimum 50% increase on the value of the remuneration of a normal hour of work.

Art. 72. In the case of permanent services for mechanical recording (typewriting, accounting or calculating machines), a break of 10 minutes shall be allowed after each period of 90 minutes of consecutive work; the break shall not be deducted from the ordinary hours of work.

DIVISION IV

NIGHT WORK

Art. 73. Except in cases where work is organized in weekly or fortnightly shifts, the remuneration for night work shall be higher than that paid for day work; the night work rate shall not be less than 20 per cent. above the hourly rate for day work.

(1) One hour's night work shall be reckoned as equal to fifty-two minutes and thirty seconds.

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(2) For the purposes of this article, work performed between the hours of 10 P.M. on one day and 5 A.M. on the following day shall be deemed to be night work.

(3) The higher rate provided for in this article shall be fixed, in undertakings which by reason of the nature of their operations do not normally work during the night, on the basis of the rates paid for similar work during the day. In the case of undertakings where the nature of their operations involves night work, the increased rate shall be calculated on the basis of the minimum current wage rate in the area and shall not be payable if the remuneration paid already exceeds the said minimum rate plus 20 per cent.

(4) In the case of mixed working hours, that is to say those including both day work and night work, the provisions of this article and the subsections thereof shall apply to the hours of night work.

(5) The provisions of this Chapter shall apply in cases where night work is extended.

Division V

Timetables

Art. 74. The hours of work shall be shown on a timetable drawn up in conformity with a model prescribed by the Ministry of Labor, Industry and Commerce and posted up in a conspicuous place. If the distribution of hours of work is not the same for all the employees in the same group or shift, the timetable shall show the hours of work of each employee.

(1) The hours of work shall be entered in the register of employees, with a note of collective agreements or contracts concluded (if any).

(2) In establishments with more than ten employees, the hours at which employees enter and leave the establishment shall be recorded by a mechanical recording appliance or otherwise; the breaks for rest shall also be recorded.

(3) If work is performed outside the establishment, the hours of work of the employees shall be shown clearly on a card or paper in their possession, without prejudice to the provisions of subsection (1) of this article.

Division VI

Penalties

Art. 75. (Amended by Law No. 7855 of Oct. 24, 1989) Persons guilty of a contravention of the provisions of this chapter shall be liable to a fine of not less than 3 nor more than 300 time the regional values of reference, according to the nature of the offense, its

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extent and the intention of the offender; in the event of a repetition of the offense, obstruction to inspection or disrespect to an authority, the fine shall be doubled.

Sole Subsection. The Regional Labor Officers shall be competent to impose penalties.

CHAPTER III

MINIMUM WAGES

Division I

Definition

Art. 76. "Minimum wage" (salario minimo) shall mean the minimum remuneration payable and paid directly by the employer to an employee (including an agricultural worker), irrespective of sex, for a normal day's work, which is sufficient to satisfy his normal needs as regards food, housing, clothing, hygiene and transport, at a specified period and in a specified region of the country.

Art. 77. Repealed by Law No. 4589 of Dec. 11, 1964.

Art. 78. If the remuneration is paid by the job or at task or piece rates, the employee shall be guaranteed a daily wage which shall not in any case be less than the minimum wage fixed for a normal day's work in the region, zone or sub-zone.

Sole Subsection. Where the monthly minimum wage of an employee working on a commission or percentage basis consists of a fixed rate plus a fluctuating rate, he shall invariably be guaranteed the minimum wage, and it shall not be lawful to make any deduction during the following month by way of compensation.

Art. 79. When fixing the minimum wage of employees engaged in unhealthy work, the minimum wage board may increase the normal minimum wage for the region, zone or sub-zone by fifty per cent.

Art. 80. The wage payable to an apprentice who is still a minor shall never be less than half the regional minimum wage during the first half of the maximum term fixed for the apprenticeship in the trade concerned. During the second half he shall receive at least two-thirds of the regional minimum wage.

Sole Subsection. A young person between the ages of 12 and 18 years shall be deemed to be an apprentice if he is receiving systematic vocational training in the trade in which he is employed.

Art. 81. The minimum wage shall be calculated in accordance with the formula mw=a + b + c + d + e, in which a, b, c, d, and e represent respectively the value of the daily expenditure on food, housing, clothing, hygiene and transport which are necessary for the existence of an adult employee.

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(1) The element of the minimum wage representing food shall be at least equal to the total value of the foodstuffs enumerated in duly approved schedules of foodstuffs necessary for the daily nourishment of an adult employee.

(2) Certain foodstuffs may be replaced by the equivalents in each group specified likewise in the schedules mentioned in the preceding subsection, if the conditions prevalent in a region, zone, or sub-zone make this advisable, due account being taken of the nutritive values fixed in the said schedules.

(3) The Ministry of Labor, Industry and Commerce shall revise periodically the schedules mentioned in subsection (1) of this article.

Art. 82. If the employer supplies any element or elements of the minimum wage in kind, the pecuniary part of the wage shall be calculated in accordance with the formula PW . MW - P, in which PW represents the pecuniary wage, MW the minimum wage, and P the aggregate value, in the region, zone or sub-zone concerned, of the above-mentioned elements.

Sole Subsection. The part of the minimum wage paid in money shall not in any case be less than 30% (thirty per dent.) of the minimum wage fixed for the region, zone or sub-zone concerned.

Art. 83. A homeworker shall be entitled to the minimum wage; "homeworker" (trabalhador em domicilio) shall mean a person who performs work in his own home or in a family workshop on account of an employer who pays him for the said work.

Division II

Regions, Zones and Sub-zones

Art. 84. For the purpose of the application of the minimum wage the country shall be divided into 23 regions corresponding to the States and the Federal District.

COMMENT: The number of regions stated above is in accordance with Decree No. 49595 of Dec. 28, 1960. This article has been prejudiced by Art. 7 of the Constitution.


Art. 86. (Art. 7 of the Constitution of 1988 prejudiced this provision) If variations in the cost of living are found to exist in any region or zone owing to the economic conditions prevailing in urban, suburban, rural or coastal areas, the Minister of Labor, on the recommendation of the Department of Employment and Wages, and after consultation with the National Council of Wage Policy, shall authorize it to subdivide the region or zone in accordance with these conditions.

(1) (Amended by Law No. 5381 of Dec. 9, 1968) In cases covered by this article subordinate local boards shall be set up under the minimum

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wage boards, to which they shall make recommendations respecting the local minimum wage.

(2) (Added by Law No. 5381 of Dec. 9, 1968. The provisions of this paragraph have been prejudiced by Art. 7 of the Constitution) Insofar as the circumstances mentioned in this article are verified, the minimum wage established for the original municipalities shall be in force in the municipalities that have been created as divisions thereof.

(3) (Added by Law No. 5381 of Dec. 9, 1968. The provisions of this paragraph have been prejudiced by Art. 7 of the Constitution) In the case of new municipalities formed from the division of more than one municipality, until the circumstances can be verified, the highest minimum wage established for the municipalities from which they originate shall be in force therein.

Division III

Constitution of the Boards

Art. 87-Art. 100. Repealed by Law No. 4589 of Dec. 11, 1964.

Division IV

Powers and Duties of Minimum Wage Boards


Division V

Fixing of the Minimum Wage





Art. 116. Sixty days after its publication in the Diario Oficial, the Decree fixing the minimum wage shall become binding on all persons, who utilize the labor of others in return for remuneration.

(1) When a minimum wage has been fixed, it shall remain in operation for three years; it may be altered or maintained for a further period of three years and for subsequent periods of three years by a decision of the competent minimum wage board approved by the Minister of Labor, Industry and Commerce.

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(2) By way of exception the minimum wage may be altered before the expiration of the period of three years during which it is in force, provided that the competent minimum wage board decides by a vote of three-fourth of its members that economic factors have caused a fundamental alteration in the economic and financial situation of the region, zone or sub-zone concerned.

Division VI

General Provisions

Art. 117. Every contract or agreement which provides for remuneration lower than the minimum wage fixed for the region, zone or sub-zone to which the agreement or contract applies shall be ipso facto null and void, and the employer concerned shall be liable to the penalties laid down in article 120.

Art. 118. Every employee who receives a wage lower than the minimum wage fixed shall be entitled, notwithstanding any contract or agreement to the contrary, to claim from the employer the sum necessary to make his wages up to the minimum wage fixed for the region, zone or sub-zone concerned.

Art. 119. The period of limitation for actions for the payment of the sum necessary to make up the minimum wage shall be two years reckoned in the case of each payment of wages from the date on which it was effected.

COMMENT: Art. 7 of the Constitution states that the period of limitation for actions in this case shall be 5 years.

Art. 120. (Amended by Law No. 7855 of Oct. 24, 1989) If any person contravenes any provision relating to the minimum wage, he shall be liable to a fine of not less than 3 nor more than 120 times the regional value of reference, which shall be doubled in the event of a repetition of the offense.

Art. 121. Repealed by L.C. # 229 of Feb. 28, 1967.



Art. 124. The application of the provisions of this chapter shall not in any case serve as a pretext for a reduction in wages.


Art. 126. The Minister of Labor, Industry and Commerce shall issue the necessary instructions for the supervision of the application of the minimum wage and may delegate this supervision to any of the administrative bodies of the Ministry, or to the inspectors of the retirement or survivors' pensions institutions, in conformity with the legislation in force.

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CHAPTER IV

ANNUAL LEAVE

Division I

Right to and Duration of Leave

Art. 129. Every employee shall be entitled to an annual leave with pay.

Art. 130. After every 12 months during which a contract of employment has been in operation an employee shall be entitled to the following periods of leave:

I. 30 calendar days, if he has not been absent from work more than five times;

II. 24 calendar days, if he has been absent from work between six and 14 times;

III. 18 calendar days, if he has been absent from work between 15 and 23 times;

IV. 12 calendar days, if he has been absent from work between 24 and 32 times.

(1) It shall not be lawful to deduct an employee's absences from work from his period of leave.

(2) The leave period shall be considered for all purposes as a period of employment.

Art. 131. The following shall not be treated as absence from work for the purposes of the preceding article:

I. absence in cases covered by article 473;

II. the compulsory absence of a woman employee on account of her maternity or abortion (other than criminal abortion), provided that she fulfills the qualifying requirements for maternity pay granted by the social insurance scheme;

III. absence on account of an employment accident or incapacity for work giving rise to the payment of sickness benefit by the social insurance scheme, except in cases covered by item IV of article 133;

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IV. absence authorized by the undertaking;

V. absence for any period during which the employee is suspended as a preventive measure because of administrative inquiries or preventive detention, provided that the case against him is dismissed or he is acquitted;

VI. absence on days on which the employee was not required to work, except in cases covered by item III of article 133.

Art. 132. Any period for which a person was employed before reporting for compulsory military service shall be calculated towards his qualifying period for purposes of leave, provided that he reports to the establishment within 90 days of the date of which he is discharged.

Art. 133. (Amended by DL No. 1535 of Apr. 13, 1977) An employee shall not be entitled to leave if, during the qualifying period, he:

I. leaves his work and is not reinstated within 60 days of his departure;

II. is released from work on full pay for more than 30 days;

III. ceases to work, but without loss of pay, for more than 30 days on account of the total or partial suspension of work in the undertaking;

IV. draws employment accident or sickness benefit from the social insurance scheme for more than six months, whether consecutive or not.

(1) (Amended by DL No. 1535 of Apr. 13, 1977) Any interruption of work must be recorded in an employee's employment and social insurance book,

(2) (Amended by DL No. 1535 of Apr. 13, 1977) An employee shall begin a new qualifying period on returning to work after any of the events referred to in this article.

(3) (Added by Law No. 9016 of March 30, 1995, effective Mar. 31, 1995) For the purposes provided in item III of this article, an enterprise shall notify the local branch of the Ministry of Labor, within a minimum period of 15 days prior to the dates of the beginning and end of a total or partial suspension of work in the enterprise, and, within the same period, notify, under the same terms, the representative trade union of the occupational category, as well as affix a notice in the respective work stations.

(4) Vetoed.

Division II

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Grant of Leave and Dates Thereof

Art. 134. Leave shall be granted by the employer in a single period in the course of the 12 months following the date on which the employee becomes entitled to it.

(1) Leave shall be granted only in exceptional cases in two periods, one of which shall not be less than ten calendar days in length.

(2) Leave shall invariably be granted in a single period in the case of persons under 18 years of age or over 50 years of age.

Art. 135. (Amended by Law No. 7414 of Dec. 9, 1985) An employee shall be given at least 30 days' notice in writing of the grant of leave. He shall give a receipt for the notice given to him.

(1) (Amended by DL No. 1535 of Apr. 13, 1977) An employee shall not go on leave without giving his employment and social insurance book to the employer so that the appropriate entry can be made in it.

(2) (Amended by DL No. 1535 of Apr. 13, 1977) The fact that leave has been granted shall also be entered in the register of employees or on their registration cards.

Art. 136. The leave dates shall be those most convenient to the employer's interests.

(1) Members of the same family employed in the same establishment or undertaking shall be entitled to take leave during the same time if they so desire and if not detrimental to the conduct of the work for them to do so.

(2) A student employee who is under 18 years of age shall be entitled to take his leave during the school holidays.

Art. 137. Where leave is granted after the period referred to in article 134, the employer shall pay twice the corresponding rate of remuneration.

(1) Where the aforementioned period has expired without the employer having granted the leave, the employee may enter a petition requesting that his leave dates should be determined by a court decision.

(2) The decision shall be accompanied by a daily penalty equal to 5 Per cent of the minimum wage for the region, which shall accrue to the employee until the decision is complied with.

(3) A copy of the final decision shall be transmitted to the local office of the Ministry of Labor, in order that the administrative fine can be imposed.

Art. 138. An employee shall not perform services for another employer while he is on leave, unless he is required to do so under a contract of employment validly concluded with the latter.

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Division III

Leave granted on a collective basis

Art. 139. Leave may be granted on a collective basis to all the employees working in an undertaking or in specified establishments or departments of an undertaking.

(1) Such leave may be taken in two annual periods, on condition that neither of them is less than ten calendar days in length.

(2) For purposes of this article, the employer shall give at least 15 days' notice to the local office of the Ministry of Labor of the dates on which the leave is to begin and end, indicating which establishments or departments are concerned.

(3) The employer shall send a copy of the notice within the same time-limit to the trade unions representing the occupation concerned and shall arrange for a notice to be posted in his workplaces.

Art. 140. An employee who has been hired less than 12 months previously shall be granted a proportionate period of leave at the appropriate time and shall thereafter begin a new qualifying period.

Art. 141. Where the number of employees affected by leave granted on a collective basis is over 300, the undertaking may make the entries referred to in article 135 (1) by means of a stamp.

(1) The stamp, which shall be of a pattern approved by the Ministry of Labor, need not include the reference to the qualifying period completed by each employee.

(2) Where the procedure referred to in this article is adopted, the undertaking shall provide each employee with an initialed copy of the receipt referred to in the sole subsection of article 145.

(3) On the termination of an employee's contract of employment, the employer shall make an entry in his employment and social insurance book indicating the dates of the qualifying periods corresponding to leave granted to the employee on a collective basis.

Division IV

Rate and Payment of Leave Remuneration

Art. 142. While on leave an employee shall be entitled to the remuneration due him on the date on which the leave is granted.

(1) Where an employee is remunerated on an hourly basis and works a variable number of hours, the basis taken shall be the average for the

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qualifying period at the rate of remuneration which he earned on the date on which the leave was granted.

(2) Where an employee is remunerated at piece rates, the basis taken shall be his average output for the qualifying period at the piece rate which he earned on the date on which the leave was granted.

(3) Where an employee is remunerated on a percentage, commission or expense-account basis, the basis taken shall be the average earned by him over the 12 months preceding the date on which the leave was granted.

(4) Any portion of an employee's remuneration which is paid to him in the form of a share in profits shall calculated in accordance with the entries made in his employment and social insurance book.

(5) Any supplements for overtime, night work or work in unhealthy or dangerous conditions shall be included in the remuneration taken as a basis for calculating the leave remuneration.

(6) Where an employee, when going on leave, is not receiving the same supplement as during his qualifying period or where the value of the supplement has not been uniform, it shall be calculated at the rate of one-twelfth of the rate received over the qualifying period, as revised in the light of any subsequent percentage wage adjustments.

Art. 143. An employee may take one-third of his leave entitlement in the form of a cash payment calculated on the basis of the remuneration due to him for the days in question.

(1) A request for payment in lieu of leave shall be made at least 15 days before the end of the qualifying period.

(2) Where leave is granted on a collective basis, the conversion referred to in this article shall be the subject of a collective agreement between the employer and the trade union representing the occupation in question, which shall be independent of the individual requests for payment. "

Art. 144. The payment in lieu of leave referred to in the preceding article and any similar payment made in accordance with a stipulation in the employee's contract of employment or in accordance with the work rules or the collective agreement shall not form part of the employee's remuneration for the purposes of labor and social insurance law if it does not represent more than 20 days' pay.

Art. 145. Leave remuneration and, where appropriate, the cash in lieu of leave referred to in article 143 shall be paid not less than two days before the beginning of the leave.

Sole Subsection. An employee shall give a receipt for the payment, with an indication of the dates on which his leave begins and ends.

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Division V

Effects of the Termination of Contracts of Employment

Art. 146. On the termination of his contract of employment for any reason, an employee shall be entitled to the remuneration corresponding to the period of leave to which he had become entitled, which shall be payable at the single or double rate, as the case may be.

Sole Subsection. In the event of the termination of his contract of employment after 12 months' service, an employee who has not been dismissed for just cause shall be entitled to the remuneration corresponding to any period of leave not taken, as provided in article 130, in the proportion of one-twelfth for every month of service or fraction of a month in excess of 14 days.

Art. 147. An employee who is dismissed without just cause or whose contract of employment expires after a specified period shall be entitled, if he has not completed 12 months' service, to the remuneration corresponding to any period of leave not taken, in accordance with the provisions of the preceding article.

Art. 148. Leave remuneration, even where it becomes due after the termination of an employee's contract of employment, shall be deemed to be wages for the purposes of article 449.

Division VI

Beginning of the Period of Limitation

Art. 149. The period of limitation within which an employee must claim the grant of leave or the payment of the corresponding remuneration shall be calculated from the end of the period referred to in article 134 or from the date of termination of his contract of employment, as the case may be.

Division VII

Special Provisions

Art. 150. In case a shipowner decides to transfer a seaman to the service of another shipowner, the seaman shall be credited, for the purposes of his right to leave, with any period of employment in the service of the former shipowner, and the leave to which he is entitled shall be granted by the shipowner in whose service he is working when he goes on leave.

(1) Where a vessel calls at a port for a long period, seamen who are resident there may be granted part of their leave in that port if they so request and the shipowner so agrees.

(2) A vessel shall be deemed to call at a port for a long period if it remains there for more than six

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days.

(3) To take leave in the manner provided for in this article, seamen must apply for it in writing to the shipowner in the vessel's port of registration or home port, before the voyage begins.

(4) On finishing his leave a seaman shall report to the shipowner, who shall assign him to one of his vessels or to one of his services ashore, due account being taken of his personal circumstances and remuneration.

(5) In case of need dictated by the public interest and duly recognized by the competent authority, a shipowner may order a seaman to suspend leave already begun or due to begin, without prejudice to the seaman's right to take the leave at some later time.

(6) The maritime labor officer may give permission for a seaman to accumulate two periods of leave if a substantiated application to that effect is made by--

I. the trade union, if the seaman is a member of the union;

II. the enterprise, if the seaman is not a member of a union.

Art. 151. Pending the institution of a special employment book for seamen, leave shall be entered by the harbor-master in a seaman's registration book, on the page reserved for comments.

Art. 152. While a seaman is on leave, his remuneration shall be increased by any supplements corresponding to the part of the voyage in which he is currently engaged.

Division VIII

Penalties

Art. 153. (Amended by Law No. 7855 of Oct. 24, 1989) Infringements of this Chapter shall be punishable with a fine equal to 160 BTN per employee in an irregular situation.

Sole Subsection. (Amended by Law No. 7855 of Oct. 24, 1989) Where the offender is guilty of a repetition of the infringement, obstructs or resists supervision or resorts to deceit or dissimulation with the object of circumventing the law, the fine shall be doubled.

CHAPTER V

OCCUPATIONAL SAFETY AND HEALTH

Division I

General Provisions

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Art. 154. Compliance with the provisions of this chapter in every workplace shall not exempt an enterprise from compliance with other provisions on the subject contained in the building codes or health regulations of the state or municipality in which the enterprise is located, or the provisions deriving from collective labor agreements.

Art. 155. It shall be the duty of the competent national occupational safety and health authority to

I. draw up rules, within the limits of its competence, for applying the provisions of this chapter, and especially those referred to in article 200;

II. co-ordinate, guide and supervise inspection and other activities connected with occupational safety and health throughout the country, including the national employment accident prevention campaign;

III. act as the authority of final instance in the event of an appeal by one of the parties or by an official service against a decision taken by a regional labor officer on a question of occupational safety and health.

Art. 156. Within the limits of its jurisdiction a regional labor delegation shall more particularly --

I. promote supervision of compliance with the provisions governing occupational safety and health;

II. take such measures as are necessary in pursuance of this chapter and order any work or repairs to be carried out that appear to be required in any workplace.

III. impose appropriate penalties for any failure to comply with the provisions of this chapter, as provided in article 201.

Art. 157. An enterprise shall be required to --

I. observe and enforce the provisions governing occupational safety and health;

II. inform its employees, by means of internal instructions, of the precautions to be taken against employment accidents and occupational diseases;

III. take such measures as are ordered by the competent regional authority;

IV. facilitate supervision by the competent authority.

Art. 158. An employee shall be required to --

I. observe the rules governing occupational safety and health, including the instructions referred to in item II of the preceding article;

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II. co-operate with the enterprise in applying the provisions of this chapter.

Sole Subsection. An employee shall be at fault if he refuses without a valid reason to --

(a) comply with the instructions issued by the employer under item II of the preceding article;

(b) use the personal protective equipment provided by the enterprise.

Art. 159. Duties relevant to the supervision or guidance of enterprises in their compliance with the provisions of this chapter may be delegated to other federal, state or municipal authorities on the basis of an agreement approved by the Minister of Labor.

Division II

Prior Inspection; Supervision and Prohibition of Work

Art. 160. No establishment may be brought into operation until its installations have been inspected and approved by the competent regional occupational safety and health authority.

(1) A further inspection shall be carried out whenever any substantial change is made to such installations, including the equipment; the enterprise shall be required to give prompt notice of any such change to the regional labor delegation.

(2) An enterprise may apply to the regional labor delegation for prior approval of its building projects and related installations,

Art. 161. A regional labor officer, on receiving a technical report from the competent service showing that there is serious and imminent danger for any worker, may prohibit the use of an establishment, department, machine or piece of equipment or suspend the performance of work at the same time indicating in his decision, which shall be made as quickly as the circumstances require, what measures have to be adopted to prevent an employment accident.

(1) The federal, state and municipal authorities shall provide immediate support for any measures ordered by a regional labor officer.

(2) A request for the prohibition or suspension of work may be made by the competent service of the regional labor delegation, by a labor inspection official or by a trade union authority.

(3) The party concerned may appeal within ten days against the decision taken by the regional labor officer to the competent national occupational safety and health authority, which shall have power to decide if the appeal is to effect a stay of execution.

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(4) In addition to being liable to the appropriate penalties a person shall be guilty of insubordination if, after a decision has been taken to prohibit or suspend work, he orders or permits the operation of the establishment or any of its departments, the use of any machine or piece of equipment or the continuance of work, if prejudice is sustained by any third party as a result.

(5) Regardless of any appeal, a regional labor officer may cancel a prohibition after receiving a technical report from the competent service,

(6) For such time as work is stopped as a result of a prohibition or suspension, the employees shall receive their wages as if they were actually employed.

Division III

Occupational Safety and Health Authorities in Enterprises

Art. 162. Enterprises shall be required, in accordance with provisions to be made by the Ministry of Labor, to maintain specialized occupational safety and health services.

Sole Subsection. The provisions referred to in this article shall specify--

(a) how enterprises are to be classified according to the number of their employees and the nature of the risk involved in their activities;

(b) the minimum number of specialized staff to be employed in each enterprise, depending on the group in which it has been classified, as provided in the preceding clause:

(c) the skills required by the specialized staff in question, and their conditions of employment;

(d) the other features and duties of the specialized occupational safety and health services maintained in enterprises.

Art. 163. A work accident prevention committee shall be set up in accordance with instructions issued by Ministry of Labor in every establishment or workplace covered by such instructions.

Sole Subsection. Regulations shall be drawn up by the Ministry of Labor specifying the powers, duties, membership and operation of work accident prevention committees.

Art. 164. Each work accident prevention committee shall consist of representatives of the enterprise and the employees, in accordance with criteria to be laid down in the regulations referred to in the sole subsection of the preceding article.

(1) The representatives and their alternates of the employer shall be appointed by the employer himself.

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(2) The representatives and their alternates of the employees shall be elected at a secret ballot held exclusively among the employees concerned, without regard for their trade union membership.

(3) The elected members of a work accident prevention committee shall hold office for one year and may be re-elected.

(4) The provisions of the preceding subsection shall not apply to a deputy member who, during his term of office, has attended less than half the committee meetings.

(5) The employer shall each year appoint the chairman of the work accident prevention committee

from among his representatives and the employees shall elect the vice-chairman from among their representatives.

Art. 165. The employees' representatives on a work accident prevention committee may not be arbitrarily dismissed, other than for disciplinary, technical, economic or financial reasons.

Sole Subsection. Where an employees' representative is dismissed but issues a complaint with the labor courts, the employer shall be required to prove the existence of one of the grounds referred to in this article and shall otherwise be ordered to reinstate the employee.

Division IV

Personal Protective Equipment

Art. 166. Where general measures do not afford the employees complete protection against possible accidents or injuries to their health, the undertaking shall provide them free of charge with personal protective equipment appropriate to the risk and in a fully satisfactory state of maintenance and operation.

Art. 167. No item of protective equipment may be offered for sale or used unless it has been approved by the Ministry of Labor.

Division V

Preventive Medicine

Art. 168. (Amended by Law No. 7855 of Oct. 24, 1989) It is obligatory that every employee shall be medically examined at the employer's expense, under the conditions established in this article and in the complementary instructions to be issued by the Ministry of Labor:

I. upon admission;

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II. upon dismissal;

III. periodically.

(1) (Amended by Law No. 7855 of Oct. 24, 1989) The Ministry of Labor shall issue instructions relative to the cases in which examinations shall be required:

a) on the occasion of dismissal;

b) supplementary.

(2) (Amended by Law No. 7855 of Oct. 24, 1989) Other supplementary examinations may be required by the medical practitioner to ascertain whether the employee is physically and mentally fit for the job he is to do.

(3) (Amended by Law No. 7855 of Oct. 24, 1989) The Ministry of Labor shall establish in accordance with the risk of the activity and the time of exposure, how often Medical examinations shall be repeated.

(4) (Amended by Law No. 7855 of Oct. 24, 1989) Every establishment shall be equipped with the necessary facilities to provide first aid, in accordance with the risk of the activity.

(5) (Amended by Law No. 7855 of Oct. 24, 1989) The result of the medical exams, including supplementary examinations, shall be communicated to the worker, observing the precepts of medical ethics.

Art. 169. Every occupational disease and every disease occasioned by the special conditions in which the work is done shall be reported on its diagnosis or suspected diagnosis, in accordance with instructions issued by the Ministry of Labor.

Division VI

Buildings

Art. 170. Every building shall fulfill the technical requirements guaranteeing the absolute safety of the persons employed in it.

Art. 171. Every workplace shall be at least 3 metres high, measured in terms of the free space from floor to ceiling.

Sole Subsection. This minimum may be reduced if the standard of lighting and ventilation is adequate, having regard to the nature of the work, but the reduction shall be subject to inspection by the competent occupational safety and health authority.

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Art. 172. The floor of a workplace shall not have any protrusions or holes likely to impede the movement of persons or objects.

Art. 173. Every opening in a floor or wall shall be so protected as to prevent persons or objects from falling through it.

Art. 174. Every wall, stairway, incline, walkway floor, corridor, roof and passageway in a workplace shall comply with occupational safety and health criteria laid down by the Ministry of Labor and shall be maintained in a fully satisfactory state of repair and cleanliness.

Division VII

Lighting

Art. 175. Every workplace shall have adequate natural or artificial lighting appropriate to the nature of the work performed.

(1) Lighting shall be distributed in a uniform, general and diffused manner, so as to prevent dazzle, unpleasant reflections, shadows and excessive contrasts.

(2) The Ministry of Labor shall lay down the minimum standards of lighting to be observed.

Division VIII

Ventilation

Art. 176. Every workplace shall have natural ventilation appropriate to the work performed.

Sole Subsection. Artificial ventilation shall be compulsory if natural ventilation does not ensure an adequate temperature.

Art. 177. Where the environmental conditions are uncomfortable on account of plant that generates cold or heat, working clothes suitable to the conditions shall be worn or hoods, screens, double walls, heat insulation and similar devices shall be used to protect the employees against the temperature conditions.

Art. 178. The temperature conditions in a workplace shall be maintained within limits fixed by the Ministry of Labor.

Division IX

Electrical Installations

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Art. 179. The Ministry of Labor shall prescribe the safety conditions and special precautions to be observed in connection with electrical installations at all stages in the production, transmission, distribution and consumption of power.

Art. 180. Only qualified staff shall install, operate, inspect or repair electrical installations.

Art. 181. Persons working in electricity services or with electrical installations shall be familiar with the methods used to give first aid to victims of electric shock.

Division X

Transport, Storage and Handling of Materials

Art. 182. The Ministry of Labor shall issue rules for--

I. The safety precautions to be observed in transporting materials in workplaces, the equipment to be used for the purpose and the special conditions to be observed in the operation and handling of such equipment, including the conditions to be met by trained staff;

II. Similar requirements to be observed in connection with the handling and storage of materials, including the safety and health conditions to be met by containers, store-rooms and personal protective equipment;

III. The marking of the maximum permissible load on transport equipment, the notices to be displayed forbidding employees to smoke, the warnings to be given of the dangerous or unhealthy nature of the substances that are being transported or stored, the recommendations to be made for first aid and medical attention and the internationally recognized danger symbols to be marked on materials or substances that are being stored or transported.

Sole Subsection. The provisions on the transport of materials shall also apply, where relevant, to the transport of persons in a workplace.

Art. 183. Persons employed in transporting materials shall be acquainted with the rational methods of lifting loads.

Division XI

Machinery and Equipment

Art. 184. Machinery and equipment shall be fitted with controls for starting and stopping and such other devices as are necessary to prevent employment accidents, especially those caused by the machinery or equipment being set in motion accidentally.

Sole Subsection. It shall not be lawful to manufacture, import, sell, hire or use any machinery or equipment not complying with the provisions of this article.

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Art. 185. A machine shall not be repaired, cleaned or adjusted while it is in motion, unless it has to be working for the purposes of the operation.

Art. 186. The Ministry of Labor shall issue further rules for the precautions and safety measures to be taken in connection with the operation of machinery and equipment, and especially in connection with the protection of moving parts, the distance to be left between them, the means of access to large-scale machinery and equipment, the use of tools and the precautions and protective measures necessary when such tools are power-driven or electrically operated.

Division XII

Boilers, Furnaces and Pressure Vessels

Art. 187. Boilers, equipment and vessels generally that are operated under pressure shall be fitted with valves and other safety devices to avoid any rise in the internal working pressure that is beyond their level of resistance.

Sole Subsection. The Ministry of Labor shall issue further rules for the safety of boilers, furnaces and pressure vessels, especially in connection with their linings and location, the ventilation of premises and other means of eliminating unhealthy gas or vapor, and any other installations or equipment required for the safe performance of the work done by each employee.

Art. 188. Every boiler shall be periodically inspected by an engineer or special enterprise registered with the Ministry of Labor, in accordance with instructions issued for the purpose.

(1) Every boiler shall be accompanied by a manual including the manufacturer's original documentation and giving at least the following particulars: the technical specifications, drawings and details, the examinations and tests carried out during its manufacture and assembly, the operating characteristics and the maximum permissible working pressure, this latter detail being shown in a visible place on the boiler itself.

(2) The owner of every boiler shall institute, maintain and produce on request from the competent authority a safety register systematically recording the details of any tests, inspections, repairs and other occurrences.

(3) Plans for the installation of boilers, furnaces and pressure vessels shall be submitted for prior approval to the competent regional occupational safety authority.

Division XIII

Unhealthy and Dangerous Activities

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Art. 189. An activity or operation shall be deemed to be unhealthy if, by reason of its nature, the conditions in which it is carried on or the working methods used, it exposes the employees concerned to unhealthy agents beyond the limits of tolerance fixed in the light of the nature and intensity of the agents themselves and the period of exposure to their effects. '

Art. 190. The Ministry of Labor shall approve a schedule of unhealthy activities and operations and shall make rules for the criteria to be adopted in classifying the degrees of health risk, the limits of tolerance for the various harmful agents, the means of protection against them and the maximum period of exposure to their effects.

Sole Subsection. The rules referred to in this article shall cover the means of protecting an employee's body during operations giving rise to toxic, irritant, allergy-producing or obnoxious aerosols.

Art. 191. Health risks shall be eliminated or offset by--

I. the adoption of measures maintaining the working environment within the limits of tolerance;

II. the use of personal protective equipment reducing the effects of harmful agents to within the limits of tolerance

Sole Subsection. Where a regional labor delegation finds evidence of a health risk, it shall notify the enterprise concerned and fix a time limit for the risk to be eliminated or offset, as provided in this article.

Art. 192. Where an employee is required to work in unhealthy conditions beyond the limits of tolerance laid down by the Ministry of Labor, he shall receive a supplement equal to 40, 20 or 10 per cent of the regional minimum wage, depending on whether the situation has been classified in the maximum, intermediate or minimum degree of risk.

Art. 193. An activity or operation shall be deemed to be dangerous, as provided in regulations made by the Ministry of Labor, if, by reason of its nature or the working methods used, it involves permanent contact with inflammable or explosive substances with a high degree of risk.

(1) An employee working in dangerous conditions shall be entitled to a wage supplement of 30 per cent calculated on the basis of his wage net of any bonuses, premiums or shares in profits.

(2) An employee shall be entitled to opt for any supplement that may be due to him in respect of unhealthy conditions.

Art. 194. An employee shall cease to be entitled to a supplement in respect of unhealthy or dangerous conditions if the health or safety risk is eliminated, as provided in this Division and the rules made by the Ministry of Labor.

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Art. 195. Conditions shall be declared to be unhealthy or dangerous, and classified as such, in accordance with rules made by the Ministry of Labor and on the basis of an expert examination made by an occupational physician or engineer registered with the Ministry of Labor.

(1) Enterprises and the appropriate trade unions for the occupational categories concerned shall be entitled to request the Ministry of Labor to carry out an expert examination in the relevant establishments or departments for the purpose of declaring certain activities to be unhealthy or dangerous and of classifying or limiting them as such.

(2) Where an employee, or a trade union acting on behalf of a group of employees, alleges before a court of law that conditions are unhealthy or dangerous, the judge shall appoint an expert having the qualifications specified in this article or, where no such expert is available, shall request the competent authority of the Ministry of Labor to carry out an expert examination.

(3) The provisions of the preceding subsections shall be without prejudice to the supervisory functions' of the Ministry of Labor or to the conduct of an expert examination ex officio.

Art. 196. (Amended by Law No. 6514 of Dec. 22, 1977) The financial implications of work done in unhealthy or dangerous conditions shall take effect from the date on which the activity concerned is included in the schedules approved by the Ministry of Labor in accordance with article 11.

Art. 197. Where any material or substance used, handled or transported in a workplace is dangerous or unhealthy, it shall be marked with a label indicating its composition, giving recommendations for first aid and showing the corresponding internationally recognized danger symbol.

Sole Subsection. Any establishment carrying on an activity covered by this article shall display notices or posters in the workplaces concerned, warning the employees of any dangerous or unhealthy materials or substances.

Division XIV

Prevention of Fatigue

Art. 198. The maximum weight that an employee may move by his own efforts shall be 60 Kg., without prejudice to the special provisions governing the work of young persons and women.

Sole Subsection. The prohibition contained in this article shall not apply to objects moved by pushing or pulling trucks on rails, handcarts or other mechanical equipment: Provided that the Ministry of Labor may in such cases fix other limits preventing an employee from being required to do work beyond his strength.

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Art. 199. Where employees have to do their work sitting down, they shall be provided with seats enabling them to adopt the correct posture and avoid uncomfortable or awkward positions.

Sole Subsection. Where employees have to do their work standing up, they shall have seats available for use during such breaks as can be granted in the course of the work.

Division XV

Other Special Protective Measures

Art. 200. The Ministry of Labor shall make further provisions supplementing the provisions of this chapter, with due regard for the specific features of each activity or type of work; such provisions shall more particularly relate to--

I. the measures to be taken to prevent accidents and the personal protective equipment to be provided in construction, demolition and repair work;

II. the storage and handling of fuel and of inflammable and explosive substances, and the movement and presence of workers in the areas concerned;

III. work in excavations, tunnels, galleries, mines and quarries, with particular reference to the prevention of explosions, fire, the collapsing of earth and rock, the elimination of dust, gas, etc., and facilities for the rapid evacuation of the employees;

IV. fire protection in general and the appropriate preventive measures, including the special lining of doors and walls, the construction of fireproof walls, ditches and other safeguards and the general provision of facilities for easy movement, such as wide, safe and adequately marked entrances and exits;

V. protection against the effects of the sun, heat, cold, damp and draught, particularly in the case of work in the open air, including the provisions in this latter case of drinking water, shelters and facilities for the prevention of disease;

VI. the protection of employees who are exposed to harmful chemical substances, ionizing and other radiation, noise, vibration and abnormal jolting or pressure at the workplace; an indication shall be given of suitable means of eliminating or reducing these effects, the maximum periods of exposure to them and the maximum limits for their action or effects on the human body, compulsory medical examinations, age limits, the permanent supervision of workplaces and such other requirements as may be necessary;

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VII. hygiene at workplaces, including the standards to be observed, the sanitary installations to be provided for both sexes, showers, washbasins, dressing rooms and individual lockers, mess rooms or other facilities for taking meals, drinking water, the cleanliness of workplaces and the arrangements for achieving it, and the treatment of industrial waste;

VIII. the use of colors in workplaces, including their application to danger signals.

Sole Subsection. In the case of ionizing radiation and explosives, the provisions referred to in this article shall be made in accordance with resolutions on the subject adopted by the competent technical authority.

Division XVI

Penalties

Art. 201. (Amended by Law No. 6986 of Apr. 13, 1982) Any person committing a violation of the provisions of this chapter relating to occupational health shall be liable to a fine of between 30 and 300 times the reference amount provided for in the sole subsection to article 2 of Act No. 6205 of April 29, 1975 and any person violating the provisions relating to occupational safety shall be liable to a fine of between 50 and 500 times that amount.

Sole Subsection. (Amended by Law No. 6514 of Dec. 22, 1977) If a person is guilty of a repetition of the offense, impedes or resists supervision or resorts to deceit or false pretense with the object of evading the law, the fine shall be at the maximum rate.

Art. 202-223. Repealed by Act No. 6514 of Dec. 22, 1977.

TITLE III

SPECIAL RULES FOR THE PROTECTION OF LABOR

CHAPTER I

SPECIAL PROVISIONS RESPECTING HOURS OF WORK AND CONDITIONS OF EMPLOYMENT

Division I

Bank Employees

Art. 224. (Amended by Law No. 7430 of Dec. 17, 1985) The normal hours of work of employees in banks, banking establishments and the Federal Economic Fund (Caixa Economica Federal) shall be six continuous hours each working day, excepting Saturday, arriving at a total of 30 working hours a week.

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(1) (Amended by DL No. 229 of Feb. 28, 1967) The normal hours of work

established in this article shall be between 7 and 22 o抍 lock, the employee

being assured an interval of 15 minutes for eating, within the daily hours.

(2) (Amended by DL No. 754 of Aug. 11, 1969) The provisions of this article shall not be applied to those who carry out duties of direction, management, audit, leadership and equivalent duties, or who perform other duties of confidence, provided that the amount of the bonus is not less than one-third of the effective salary.

Art. 225. The normal hours of work of bank employees may be increased to eight hours a day by way of exception, but shall not exceed 40 hours a week, subject to compliance with the general regulations respecting hours of work.

Art. 226. (Amended by Law No. 3488 of Dec. 12, 1958) The special system of 6 hours of work shall also apply to persons employed in messenger and cleaning services, such as porters, telephone operators, messengers and office boys, employed in banks and banking establishments.

Sole Paragraph. (Amended by Law No. 3488 of Dec. 12, 1958) The board of directors of each bank shall organize the service scale of the establishment in such a manner as to have persons employed in messenger duties working one-half hour before and up to one-half hour after closing, respecting the limit of 6 hours a day.

Division II

Employees in the Telephone, Submarine and Subfluvial Cable, Wireless Telegraph and Wireless Telephone Services

Art. 227. The hours of work of employees in undertakings operating telephone, submarine or subfluvial cable, wireless telegraph and wireless telephone services shall not exceed six hours in the day or 36 hours in the week.

(1) If, in case of urgent necessity, the employees are required to remain on duty beyond the normal hours fixed in this article, the undertaking shall pay them for such overtime at the ordinary rate of pay increased by 50%.

(2) Work on Sundays, public holidays and patron saints' days shall be deemed to be overtime, and the performance thereof and the remuneration therefor shall be governed by a collective contract of employment concluded between the employers and employees in agreement with their respective industrial associations.

Art. 228. Operators shall not work without a break either in the case of manual transmission or in the case of visual or sound reception, whether the message is written by hand or typewritten, if the speed exceeds 25 words a minute.

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Art. 229. In the case of employees who are employed with a variable timetable, the hours of work shall not exceed seven hours in the day with a rest period of 17 hours; a break of 20 minutes shall be included in the hours of work of every employee who is employed without interruption for more than three hours.

(1) In addition to operators, whose duties require a separate classification, employees who belong to the technical, telephone, inspection, dispatch and delivery branches and counter clerks shall be deemed to be employees with a variable timetable.

(2) As regards the performance of work on Sundays, the remuneration therefor and other overtime, the employment of the persons mentioned in the preceding subsection shall be governed by the provisions laid down in subsection (l) of article 227 of this division.

Art. 230. The management of the undertakings shall organize the shifts of employees for the performance of their duties in such a manner that employees with the same duties are employed alternately on day work and on night work.

(1) Employees with the same duties shall be allowed to exchange shifts among themselves, provided that this does not affect the service prejudicially; the head of the service or person in charge thereof shall decide whether such an exchange is advisable or possible, in accordance with the provisions of this division.

(2) Undertakings shall not organize timetables in such a manner that the employees are compelled to take their lunch before 10 A.M. or after 1 P.M. or their dinner before 4 P.M. or after 7:30 P.M.

Art. 231. The provisions of this division shall not apply to the employment of wireless telegraph operators on board vessels or aircraft.

Division III

Professional Musicians


Division IV

Cinematography Operators

Art. 234. The normal hours of work of cinematography operators and their assistants shall not exceed seven hours in the day distributed as follows:

(a) five consecutive hours of work in the cabin during a cinematography performance;

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(b) an additional period not exceeding one hour for the purpose of cleaning and lubricating the projectors or checking films.

Sole Subsection. The hours of work of cinematography operators and their assistants may be prolonged by not more than two hours a day for special performances, subject to an increase in remuneration of 25 per cent. above the ordinary rate and to the granting of a break of two hours for rest between the period mentioned in subparagraph (b) of this article and the period of work in the cabin mentioned in sub-paragraph (a).

Art. 235. (The percentage of increase mentioned in this article was amended by Art. 7 of the Federal Constitution) In establishments which operate as a rule at night cinematography operators and their assistants may be employed during special performances given during the day and in addition during the performances given at night, in pursuance of an agreement or a collective contract of employment and subject to payment of an increase in remuneration of 50% above the ordinary rate, provided further that this does not occur more than three times in a week and that a break of not less than one hour for rest is granted between the day and night performances.

(1) The total hours of work provided for in this article shall not exceed ten hours.

(2) Every period of work shall be followed by a rest period of not less than twelve hours.

Division V

Railway Service

Art. 236. The special provisions laid down in this division shall apply to the railway service, which shall be deemed to mean the transport service on railways open to public traffic, including the management, construction, maintenance and repair of the permanent way, buildings, constructional works, rolling stock, auxiliary plant and accessory equipment, as well as the traffic service, the telegraph and telephone services and the operation of all railway plant.

Art. 237. The employees covered by the last preceding article shall be divided into the following classes:

(a) officials of the general management, chiefs and heads of departments and divisions, resident engineers, chief store-keepers, inspectors and other salaried employees holding positions of management or supervision;

(b) persons employed in specified places or sections whose duties require constant attention, office employees, permanent way construction and maintenance gangs, the staff of the principal workshops and stations, including the telegraphers attached thereto; traction staff, plate layers and inspectors;

(c) train crews in general; 41

(d) employees whose work is of an intermittent character or does not require continuous attention although it necessitates prolonged periods of attendance at the workplace: watchmen and employees at stations in the interior, including the telegraphers attached thereto.

Art. 238. The whole of the time during which the employee is at the disposal of the railway undertaking shall be reckoned as hours of actual work.

(1) The time spent by employees belonging to class (c) in traveling to and from the place where their work begins and ends shall not be deemed to be hours of actual work.

(2) If an employee is sent or ordered to proceed to a place away from home, the time spent in traveling shall be deemed to be normal hours of actual work, and shall not give a right to payment for overtime.

(3) In the case of permanent way maintenance gangs the hours of actual work shall be reckoned from the time when the gang leaves its quarters to the time at which it ceases work at any place within the limits of its section. If an employee works at a place outside the section of his gang, the time spent on the return journey to the section shall be deemed to be time spent in actual work.

(4) In the case of train crews, after arrival at their destination only the time during which the railroad worker is at work or detained to await the orders of the railway undertaking shall be deemed to be time spent in actual work. If the interval between two periods of work does not exceed one hour, it shall be deemed to be time spent in actual work.

(5) The breaks granted for meals shall not be deemed to be time spent in actual work, except in the case of employees belonging to class (c) when a meal is taken during the journey or during a halt at a station. Such breaks shall not be less than one hour, except in the case of the employees of the above-mentioned class who are members of a train crew.

(6) In the case of gangs responsible for the maintenance of constructional works, telegraph or telephone lines and buildings, the time spent in traveling to and from the workplace shall not be deemed to be hours of actual work, provided that it does not exceed one hour in either case and that the railway undertaking furnishes the means of transport; nevertheless, all the time in excess of the said limit shall be deemed to be hours of actual work.

Art. 239. In the case of employees belonging to class (c) prolongation of hours of work shall not depend upon an agreement or collective contract; nevertheless, the hours of work shall not be prolonged to more than twelve hours, and the undertakings shall as far as possible organize the work of train crews in such a manner that the normal working day of eight hours is observed.

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(1) Employees covered by the provisions of this article shall be granted a rest period of not less than ten consecutive hours after each working day; they shall be entitled in addition to the weekly rest.

(2) In the case of train crews covered by this article, if the undertaking does not supply meals during the journey and lodging at the place of destination a special allowance shall be granted to cover the expenses for meals and lodging.

(3) The working lists for the employees covered by this article shall be drawn up in such a manner that an employee shall not be required to perform night work for a greater number of hours than day work in any fortnightly period.

(4) The working periods of the employees covered by this article shall be entered in special books, which shall always remain in the possession of the employee and shall be made out in conformity with a form approved by the Minister of Labor, Industry and Commerce.

Art. 240. In case of emergency or accident likely to affect the safety or regularity of the service, the hours of work may by way of exception be increased without restriction; in this case, the railway undertaking shall be bound to ensure that the health of their employees is not prejudiced and shall endeavor to alternate the gangs so as to ensure the necessary rest periods for the employees; notice shall be given of such cases to the Ministry of Labor, Industry and Commerce within ten days of the occurrence thereof.

Sole Subsection. In the cases mentioned in this article, if any employee refuses without sufficient reason to work overtime, this shall be deemed to be a serious fault.

Art. 241. (Amended by the Federal Constitution) Hours of work in excess of the normal working day of eight hours shall be paid for as overtime at the following rates: the first two hours in excess shall be paid for at the rate of 50 per cent above the normal hourly wage, the next two hours at the rate of 50 per cent above it and all further overtime at the rate of 75 Per cent above it.

Sole Subsection. (Amended by the Federal Constitution) In the case of employees belonging to class (c), the first hour in excess shall be paid for at the rate of 50 per cent. above the normal hourly wage, the second hour at the rate of 50 per cent above it and the next two hours at the rate of 60 per cent. above it, except in case of proved negligence.

Art. 242. Fractions of half an hour which exceed ten minutes shall be deemed to be half an hour.

Art. 243. The general rules relating to hours of work shall not apply to employees at stations in the interior whose work is of an intermittent character or does not require continuous attention; nevertheless, they shall be granted an uninterrupted rest period

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of not less than ten hours between two periods of work and shall also be entitled to the weekly rest.

Art. 244. Railways may employ supernumerary employees, reserve employees and emergency employees to perform duties which cannot be foreseen or to act as substitutes for other employees who fail to attend in accordance with the working list.

(1) "Supernumerary employee" (empregado extranumerario) shall mean an impermanent employee who is a candidate for established employment, and who normally reports himself for employment but is only employed when necessary. A supernumerary employee shall receive remuneration only

for days of actual work.

(2) "Reserve employee" (empregado de sobre-aviso) shall mean an established employee who remains at home in readiness to be called up for duty at any moment. Each turn of reserve duty shall not exceed twenty-four hours. Hours on reserve duty shall be reckoned for all purposes at one-third of their duration.

(3) "Emergency employee" (empregado de prontidao) shall mean an employee who remains on the premises of the railway undertaking awaiting orders. Each turn of emergency duty shall not exceed twelve hours. Hours on emergency duty shall be reckoned for all purposes at two-thirds of their duration,

(4) If facilities for taking meals are provided in the establishment or a dependency thereof where the employee is in attendance, the twelve hours on emergency duty referred to in the last preceding subsection may be continuous. In default of such facilities a break of one hour for a meal shall be granted after six hours on emergency duty, and in this case the said break shall not be included in the hours of work.

Art. 245. The normal hours of work of signalmen at stations where the traffic is heavy shall not exceed eight hours and shall be divided into at least two installments separated by a break of at least one hour for rest; an installment shall not in any case exceed five hours and a period of fourteen consecutive hours shall be granted between two working days.

Art. 246. The hours of work of telegraph operators at stations where the traffic is heavy shall not exceed six hours in the day.

Art. 247. The stations of each undertaking shall be divided into the following classes by the National Department of Railways, viz., principal stations, stations where traffic is heavy and stations in the interior.

Division VI

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Crews of Vessels of the National Mercantile Marine and of Vessels Engaged in River and Lake Navigation, in Port Traffic and in Fishing

Art. 248. Between midnight on one day and midnight on the next following calendar day a member of the crew may be kept at his post for eight hours either continuously or intermittently.

(1) The master of the vessel shall decide whether duties are to be continuous or intermittent; in the latter case the periods on duty shall not be less than one hour.

(2) Duties on watch in the engine-room, on the bridge or as lookout and other duties which, in the opinion of the medical officer, are likely to affect the health of the member of the crew shall be performed for periods not exceeding four hours, separated by intervals of not less than four hours.

Art. 249. Time in excess of eight hours spent on actual work as provided in the preceding article shall be deemed to be overtime giving a right to compensation, in conformity with article 250, except in the following cases:

(a) work performed on the personal responsibility of the member of the crew and in the exercise of duties of management, which shall be deemed to mean any duties on board the vessel entrusted to one person only, subject to his exclusive and personal responsibility;

(b) in the event of impending danger, work performed for the safety or protection of the vessel, passengers or cargo, at the discretion of the master or the person responsible for the safety of the vessel;

(c) work in connection with maneuvers or general operations which requires the attendance at their posts of all the members of the crew;

(d) in the case of lake and river navigation, work in connection with the provisioning or fueling of the vessel or resulting from the circumstances peculiar to this kind of navigation, in the passage of shoals or difficult places, including the operation of lightening or transshipment of the cargo for the purpose of reducing the draught for the passage in question.

(1) Work performed on Sundays and holidays shall be deemed to be overtime except in the following cases:

(a) duties performed on watch or as lookout, operation of the engines and appliances on board, the cleaning, of the vessel, sanitary duties, the preparation of food for the crew and passengers, personal attendance on passengers, and also urgent work for rendering assistance to the vessel or to the crew;

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(b) work required for the purpose of navigating or working the vessel when entering or leaving harbor, mooring, unmooring, loading or unloading cargo, or embarking or landing passengers.

(2) Overtime worked in the operation of the vessel in harbor shall not exceed thirty hours a week.

Art. 250. Compensation shall be given for overtime either by the granting of a rest period of equivalent duration on the day next following or the subsequent day during the normal hours of work or at the end of voyage, or by payment of the corresponding wages, as may best suit the service.

Sole Subsection. Hours worked as overtime shall be indivisible and a fraction of an hour shall be reckoned as a full hour.

Art. 251. Two registers shall be kept on board every vessel, in one of which shall be entered the overtime worked by each member of the crew and in the other any contraventions committed by members of the crew with full particulars thereof.

Sole Subsection. The registers mentioned in this article shall conform to the models prepared by the Ministry of Labor, Industry and Commerce; the entries shall be kept up to date by the master of the vessel and shall comply with the formalities prescribed for registers of employees in general.

Art. 252. Any member of the crew who considers that he is aggrieved by an order of a superior officer may lodge an appeal in writing with the Maritime Labor Office through the master of the vessel, who shall forward the appeal accompanied by his report thereon within five days reckoned from the arrival in port.

Division VII

Cold Storage Services

Art. 253. Employees who work inside cold storage chambers or who remove goods from a place where the temperature is hot or normal to a cold storage chamber and vice versa shall be guaranteed a break of twenty minutes after a spell of continuous work of one hour and forth minutes; the break shall be included in the hours of actual work.

Sole Subsection. For the purposes of this article, a workplace shall be deemed to be cold if the temperature is below 15 degrees C. in the first, second and third climatic zones of the official map

of the Ministry of Labor, Industry and Commerce, below 12 degrees C. in the fourth zone and below 10 degrees C. in the fifth, sixth and seventh zones.

Division VIII

Stevedoring Services (servico de estiva)

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Art. 254 - 292. Repealed by Law No. 8630 of Feb. 25, 1993.

Division X

Underground Work in Mines

Art. 293. The normal hours of actual work of persons employed in underground work in mines shall not exceed six hours in the day or thirty-six hours in the week.

Art. 294. The time spent by the employee in traveling from the pit mouth to the workplace and back shall be taken into account for the purpose of the payment of wages.

Art. 295. The normal hours of actual work underground may be increased to eight hours in the day and forty-eight hours in the week, by an agreement in writing between the employer and the employee or by a collective contract of employment, provided that this prolongation is authorized in advance by the authority competent for industrial hygiene.

Sole Subsection, The normal hours of actual work underground may be reduced to less than six hours in the day, by a decision of the authority mentioned in this article, on account of unhealthy conditions in the locality or the nature of the working methods and processes in use.

Art. 296. The remuneration paid for overtime shall not be less than 25 per cent. in excess of the normal hourly rate and shall be specified in the agreement or collective contract of employment.

Art. 297. The mining undertaking shall supply workers employed underground with food suited to the nature of the work, in conformity with instructions issued by the Social Welfare Nutrition Service and approved by the Ministry of Labor, Industry and Commerce.

Art. 298. A break of fifteen minutes for rest, which shall be included in the normal hours of actual work, shall be granted in the course of every working period of three consecutive hours.

Art. 299. If an accident occurs in the underground work which is likely to imperil the life or health of the employees, the undertaking shall be bound to give notice thereof forthwith to the regional labor authority of the Ministry of Labor, Industry and Commerce.

Art. 300. Whenever for reasons of health it is necessary in the view of the competent industrial health and safety authority to transfer an employee from underground to surface work, the undertaking shall be required to carry out the transfer, the person transferred being guaranteed a wage equal to that paid to a surface employee engaged in similar work, due account being taken of the occupational skill of the person concerned.

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Sole Subsection. If the employee refuses to be transferred, the matter shall be referred to the competent industrial health and safety authority for decision.

Art. 301. Employment underground shall not be permitted except in the case of men from twenty-one to fifty years of age, and transference to surface work shall be guaranteed in conformity with the provisions of the last preceding article.

Division XI

Professional Journalists

Art. 302. The provisions of this division shall apply to persons employed in newspaper undertakings as journalists, proof readers, photographers or illustrators, subject to the exceptions herein specified.

(1) "Journalist" (jornalista) shall mean an intellectual worker whose duties range from the collection of information to the writing of articles and press notices and to the organization, direction and supervision of such work.

(2) For the purposes of this division "newspaper undertaking" (empresa jornalista) shall mean an undertaking engaged in the publication of newspapers, reviews, bulletins or periodical or the distribution of news, or in broadcasting, in so far as relates to the transmission of news and news commentaries.

Art. 303. The normal hours of work of employees covered by this division shall not exceed five hours, whether in the case of day work or in the case of night work.

Art. 304. The normal hours of work may be increased to seven hours by an agreement in writing, which shall provide for an increase in remuneration corresponding to the increase in the hours of work and shall fix a break for rest or a meal.

Sole Subsection. For reasons of force majeure an employee may be employed for hours of work in excess of the hours authorized by this division. In such cases notice of the overtime shall be sent to the Inspection Division of the National Labor Department or to the regional office of the Ministry of Labor, Industry and Commerce within a time limit of five days and accompanied by a statement of the reasons. :

Art. 305. The remuneration for overtime, whether worked in pursuance of an agreement or for the reasons specified in the sole subsection of the last preceding article, shall not be less than the sum obtained by dividing the monthly salary by one hundred and fifty in the case of persons paid by the month and the daily salary by five in the case of persons paid by the day, with an increase of not less than 25 Per cent- in each case.

Art. 306. The provisions of articles 303, 304 and 305, shall not apply to persons who perform the duties of chief editor, secretary, assistant secretary, head proof reader, assistant head proof reader, head of the printing department, head of the illustrations department, or chief information officer.

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Sole Subsection. In addition, the said articles shall not apply to persons employed exclusively in outside work.

Art. 307. A compulsory rest day shall be granted after six days' actual work; the rest day shall as a rule be given on Sunday, except where otherwise agreed in writing, in which case the day on which the rest day shall fall shall be expressly specified.

Art. 308. A rest period of not less than ten hours shall be granted after every day's work.

Art. 309. Any time when the employee is at the disposal of the employer shall be deemed to be a period of actual work.

Art. 310- Art. 314. Repealed by DL No. 972 of Oct. 17, 1969.

Art. 315. The Federal Government, in agreement with the Governments or the States, shall promote the creation of schools of journalism for the training of professional journalists.

Art. 316. Repealed by DL No. 368 of Dec. 19, 1968.

Division XII

Teachers

Art. 317. (Amended by Law No. 7855 of Oct. 24, 1989) The remunerated performance of teaching in private educational establishments shall require only legal qualification and registration with the Ministry of Education.

Art. 318. A teacher shall not in any case give more than four consecutive lessons, or more than six lessons with breaks, in any one day in the same educational establishment.

Art. 319. A teacher shall not give lessons or hold examinations on Sundays.

Art. 320. The remuneration of teachers shall be fixed according to the number of weekly lessons given, as shown in the timetable.

(1) Remuneration shall be paid monthly and for this purpose each month shall be deemed to be equivalent to four and a half weeks.

(2) At the end of each month an amount corresponding to the number of lessons missed by the teacher concerned shall be deducted from the remuneration.

(3) Deductions shall not be made from remuneration, during a period of nine days, for absence on account of the teacher's marriage or of the death of the wife (or husband), father, mother or child of the teacher.

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Art. 321. If an educational establishment finds it necessary to increase the number of lessons entered in the timetables, an amount corresponding to the number of extra lessons given shall be paid to the teacher concerned at the end of each month.

Art. 322. (Amended by Law No. 9013 of Mar. 30, 1995, effective Mar. 31, 1995) During the examination period and during holidays, teachers shall be paid with the same contractual regularity as they receive according to the timetables during ordinary school periods.

(1) During examination periods a teacher shall not be required to perform more than eight hours' work in the day unless he is paid additional remuneration at the rate of pay for one class for each hour of overtime.

(2) During the holiday period teachers shall not be required to perform any work other than work in connection with examinations.

(3) (Amended by Law No. 9013 of March 30, 1995, published and effective on March 31, 1995) In the case of dismissal without just cause at the end of the school year or in the course of the school holidays, the payment to which the beginning of this article refers shall be guaranteed to a teacher.

Art. 323. Private educational establishments which do not pay adequate salaries to their teachers or which fail to pay the monthly salaries punctually shall not be permitted to continue in existence.

Sole Subsection. The Ministry of Education and Health shall fix standards for determining the amounts to be deemed to be adequate remuneration for teachers and shall be responsible for ensuring the application of the provisions or this article.

Art. 324. Repealed by Law No. 7855 of Oct. 24, 1989.

Division XIII

Chemists

Art. 325. The following persons shall be entitled to engage in the profession of chemist freely throughout the territory of the Republic, subject to compliance with the conditions regarding technical qualifications and the other requirements laid down in this division:

(a) holders of a diploma of chemist, industrial chemist, agricultural chemist or chemical engineer, issued in Brazil by an official or officially recognized school;

(b) holders of a diploma in chemistry issued by a foreign institution for higher education who have caused their diplomas to be confirmed, in conformity with the law, after July 14, 1934;

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(c) persons who at the date of the publication of Decree No. 24,693 of July 12, 1934 (Decree to issue regulations for engagement in the profession of chemist (Diario Oficial, July 14, 1934, supplement)), were actually employed in a Public or Private Post which must be held by a chemist and who have applied for the prescribed registration before the expiry of the time limit fixed by L.D. No. 2298 of June 10, 1940 (Legislative Decree respecting the register of licensed chemists (Diario Oficial, June 12, 1940)):

(1) Chemists covered by sub-paragraph (c) of this article shall be entitled "licensed chemists" for the purposes of this division.

(2) Aliens shall not be entitled to engage freely in the profession covered by this article except in the following cases:

(a) those covered by sub-paragraphs (a) and (b), independently of the confirmation of their diploma, if they were lawfully engaged in the profession of chemist in the Republic at the date of the promulgation of the Constitution of 1934;

(b) those covered by sub-paragraph (b), if they are entitled to benefit by an agreement for international reciprocity, admitted by law, with respect to the recognition of their diplomas;

(c) those covered by sub-paragraph (c), if they satisfy the conditions laid down in the said sub-paragraph.

(3) Persons who are Brazilians by naturalization shall not be entitled to engage freely in the profession of chemist until they have performed military service in Brazil.

(4) Diplomas in chemistry issued by foreign institutions for higher education shall not be confirmed except in the case of Brazilians by birth.

Art. 326. Every person who engages or intends to engage in the profession of chemist shall be bound to procure a work book; persons covered by sub-paragraphs (a) and (b) of article 325 shall be bound to register their diplomas in conformity with the legislation in force.

(1) Without prejudice to compliance with the provisions of the chapter entitled "Occupational identification", an application for a chemist's work book shall not be approved except on production of documents showing--

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(a) whether the applicant is a Brazilian by birth or naturalization or an alien;

(b) if he is a Brazilian, that he is in possession of his civil and political rights;

(c) that he holds a diploma of chemist, industrial chemist, agricultural chemist or chemical engineer, issued by an official or officially recognized higher educational institution;

(d) if he holds a foreign diploma, that the said diploma has been confirmed in conformity with the law;

(e) if he is a Brazilian by naturalization, that he has performed military service in Brazil;

(f) if he is an alien, that he was lawfully engaged in the profession of chemist in the territory of the Republic at the date of the promulgation of the Constitution of 1934, or that he is entitled to benefit by an arrangement for international reciprocity, admitted by law, for the recognition of diplomas in chemistry.

(2) The application mentioned in the preceding subsection shall b: accompanied by the following documents:

(a) a duly certified diploma, in cases covered by subparagraph (b) of the last preceding article, with the signatures attested in the country of origin and by the Secretariat of State for Foreign Affairs, or the certificate relating thereto, and the instrument of confirmation or the relevant certificate, in conformity with the legislation in force;

(b) a certificate or attestation showing that, in the case covered by sub-paragraph (c) of the last preceding article, the applicant at the date of the publication of Decree No. 24,693 of July 12, 1934, was actually employed in a public or private post which must be held by a chemist; these documents shall be attested by the regional labor officer if the applicant lives in the capital of a State or by the Federal tax collector if he lives in a municipality in the interior;

(c) three copies of the photograph required by article 309 and a sheet containing the particulars which must be entered in the work book in conformity with the provisions of the sub-paragraphs and the sole subsection of the said article.

(3) When the validity of the documents submitted has been recognized, the Occupational Identification Service of the National Labor Department in the

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Federal District or the Regional offices of the Ministry of Labor, Industry and Commerce in the States and in Acre Territory shall register in their files the documents mentioned in subparagraph (c) of subsection (1) and shall return them to the person concerned together with the work book made out.

Art. 327. Repealed by Law No. 2800 of June 18, 1956.

Art. 328. Diplomas, certificates of diplomas, offices and other documents, as well as testaments and certificates shall not be registered unless they are drawn up in proper form and the signatures have been duly attested by a notary public, and in the case of aliens, by the Ministry of State for Foreign Affairs; in the last mentioned case, a translation of the documents in question made by a Brazilian commercial interpreter shall be attached.

Art. 329. A numbered Labor and Social Welfare work book shall be furnished to each registered chemist as evidence of registration, by the National Labor Department in the Federal District or by the Regional Offices in the States, which shall contain a photograph measuring 3 by 4 centimeters, taken full-face and without a hat, and the finger prints of the thumb of the person concerned, and also the following particulars:

(a) name in full;

(b) nationality and in the case of an alien whether he is naturalized or not;

(c) date and place of birth;

(d) name of the school where he studied;

(e) date of the issue of the diploma and the registration number thereof in the Ministry of Labor;

(f) the date of the confirmation of the diploma, in the case of a diploma issued by a foreign institution;

(g) mention of any other qualifications with dates;

(h) signature of the registered chemist.

Art. 330. (Text as amended by L.D. No. 5922 of Oct. 25, 1943 (Diario Oficial, Oct. 27, 1943, No. 250, P. 159916).) The work book issued as provided in this division shall be compulsory for engagement in the profession; it shall be substituted in every case for the diploma or certificate and shall be used as an identity book.

Art. 331. No authority shall accept payment of any tax relating to engagement in the profession of chemist unless proof is furnished that the person concerned is registered in conformity with this division; such evidence shall also be required for admission to competitive examinations of experts and for any other official Proceedings which require the technical capacity of a chemist.

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Art. 332. If any person who is not duly registered announces his intention of engaging in the profession of chemist in any of its branches, by means of advertisements, signs, commercial circulars or any other methods, he shall be liable to the penalties applicable in the case of illegal practice of a profession.

Art. 333. Chemists covered by the Preceding Provisions shall not be entitled lawfully to perform the duties of a chemist until they have complied with the obligations prescribed by article 330 of this division.

Art. 334. Engagement in the profession of chemist shall comprise--

(a) the manufacture of chemical products and sub-products in different degrees of purity;

(b) chemical analyses, the giving of opinions and certificates, and the drafting of schemes in this sphere, and the carrying out thereof, civil or juridical expert examinations, the direction and management of chemical laboratories or departments in industrial and commercial undertakings;

(c) the teaching of chemistry in university and colleges;

(d) the work of chemical engineers.

(1) Chemists, industrial chemists and agricultural chemists who satisfy the conditions laid down in sub-paragraphs (a) and (b) of article 325, shall engage in the occupations specified in sub-paragraphs (a), (b) and (c) of this article; the work specified in sub-paragraph (d) shall be reserved for chemical engineers.

(2) Persons who satisfy the conditions laid down in subparagraphs (a) and (b) of article 325, and also persons holding diplomas in medicine or dispensing, shall be competent to perform the duties specified in sub-paragraphs (d), (e) and (f) of article (2) of Decree No. 20,377 of Sept.- 8, 1931 (Decree to regulate engagement in the profession of dispensing chemist (Diario Oficial, Sept. 14, 1931).); the duties specified in subparagraph (h) of article 6 of Decree No. 23,196 of Oct. 12, 1938 (Decree to regulate engagement in the profession of agronomist (Diario Oficial, Oct. 16 and 30, 1933).), shall be reserved for agronomists and agronomic engineers.

Art. 335. The engagement of chemists shall be compulsory in the following branches of industry:

(a) industries engaged in the manufacture of chemical products;

(b) industries which maintain laboratories for chemical tests;54

(c) industries engaged in the manufacture of industrial products obtained by means of directed chemical reactions, such as cement, sugar and alcohol, glass, tanning extracts, artificial plastic substances, explosives, coal and petrol by-products, vegetable or mineral oil refining, soap, cellulose and its by-products.

Art. 336. For appointment to public posts for which a chemist's qualifications are requisite, with the exception of the special posts mentioned in subsection (2) of article 334, as from the date of the publication of Decree No. 24,693 of July 12, 1934, it shall be an essential condition that the candidates satisfy the conditions laid down in article 333 of this division.

Art. 337. Certificates of chemical analyses, expert opinions, sworn statements, technical reports and projects relating to chemistry which are signed by chemists who satisfy the conditions laid down in sub-paragraphs (a) and (b) of article 325 shall be accepted as valid public instruments.

Art. 338. Chemists who satisfy the conditions laid down in sub-paragraphs (a) and (b) of article 325 shall be authorized to teach chemistry in official or officially recognized higher educational establishments.

Sole Subsection. In the event of a competitive examination for a public office or employment, the chemists mentioned in this article shall be entitled to preference, other things being equal.

Art. 339. The name of the chemist responsible for the manufacture of the products of a factory, plant or laboratory shall appear on the labels, bills, advertisements, letter heads and envelopes.

Art. 340. A person other than a qualified chemist holding a diploma specified in sub-paragraphs (a) and (b) of article 325 shall not be appointed ex officio to make a technical inspection of a factory, laboratory or plant or of the products manufactured therein.

Sole Subsection. The provisions of this article shall not apply to pharmaceutical products or to laboratories of pharmaceutical products.

Art. 341. All services not specified in these regulations which on account of their nature require a knowledge of chemistry shall be performed by qualified chemists holding the diplomas specified in sub-paragraphs (a) and (b) of article 325.


Art. 343. The duties of the supervising authorities shall be as follows:

(a) to examine the documents required for professional registration under article 326 and subsections (1) and (2) thereof and under article 327, to make the necessary registrations and to refuse the applications of persons who fail to satisfy the requirements of this division;

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(b) to register the notices and contracts mentioned in article 350 and its subsections and to make the necessary deletions;

(c) to supervise the strict application of the provisions of this division by making such inquiries as may be necessary and by examining records, books, pay sheets, contracts and other documents used by industrial or commercial firms or undertakings which employ any person or persons in posts or duties for which the qualifications of a chemist are required.


Art. 345. If the Ministry of Labor, Industry and Commerce discovers that diplomas, sworn statements, certificates or any other documents produced for the purposes of this division are forged, the guilty persons and their accomplices shall be liable to the penalties prescribed by law.

Sole Subsection. If it is discovered that any diploma or other certificates of any kind are forged, notice thereof shall be given forthwith to the Occupational Identification Service in the National Labor Department, and the forged documents shall be forwarded to it for the purpose of the institution of legal proceedings.

Art. 346. If any chemist or licensed chemist is guilty of any one of the following offenses, he shall be suspended from performance of his duties, without prejudice to any other penalties to which he may be liable:

(a) if he is guilty of unprofessional conduct, gives false evidence, reveals a professional secret, or forges any of the documents mentioned in this division;

(b) if he uses his scientific knowledge for the purpose of assisting in the commission of a crime or offense against the country, the social system or public health;

(c) if he fails within the time limit specified in this division to apply for the confirmation and registration of a foreign diploma, or for his professional registration in the Ministry of Labor, Industry and Commerce.

Sole Subsection. The period of suspension mentioned in this article shall be not less than one month nor more than one year, and shall be fixed at the discretion of the National Labor Department, after due proceedings, without prejudice to criminal prosecution.

Art. 347. (Amended by Law No. 6205 of Apr. 29, 1975) If any person engages in the profession of chemist without satisfying the conditions of article 325 and the sub-paragraphs thereof, and without applying for registration under article 326, he shall be liable to a fine of not less than 4 nor more than 100 regional reference values; in the event of a repetition of the offense the fine shall be doubled.

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Art. 348. The National Labor Department may issue an order, subject to approval by the Minister, to provide that the licensed chemists mentioned in subsection (1) of article 325, shall cease to be entitled to the guarantees granted by this division, if on account of an offense under article 346 they cease to perform the public or private duties in which they were engaged at the time of the publication of Decree No. 24,693 of July 12, 1934.

Art. 349. The number of alien chemists employed by individuals, undertakings or companies shall not exceed one-third of the number of Brazilian chemists belonging to the staff in question.

Art. 350. A chemist who becomes responsible for the technical management of, or takes a post of chemist in, any works, factory, industrial laboratory or laboratory for chemical analysis, shall be bound to give notice thereof in writing within twenty-four hours to the supervising authority and from that date he shall be responsible for the technical side of the undertaking, in so far as concerns his profession, and shall also have the technical responsibility for the manufactured products.

(1) When a contract is signed between a chemist and the owner of a factory, works or laboratory, it shall be submitted to the supervising authority for registration within a time limit of thirty days.

(2) If any chemist ceases to hold a post of technical management or as chemist which he has hitherto held, he shall give notice in the manner provided in the first part of this article in order that he may be relieved of his responsibility and the contract canceled. In the event of the bankruptcy of the establishment the notice shall be given by the owner.

Division XIV

Penalties

Art. 351. (Amended by Law No. 7855 of Oct. 24, 1989) Persons guilty of contraventions of the provisions of this chapter shall be liable to a fine of not less than 3 nor more than 300 regional reference values, according to the nature of the offense, the extent thereof, and the purpose for which it was committed; in the event of a repetition of the offense, obstruction to supervision or disrespect to any authority, the fine shall be doubled.

Sole Subsection. The authorities of first instance responsible for supervision of the provisions laid down in this chapter shall be competent to impose penalties.

CHAPTER II

PROTECTION OF THE NATIONAL EMPLOYMENT MARKET

Division I

Proportion of Brazilian Employees

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Art. 352. If any individually owned undertaking or company which operates public services under a concession or is engaged in industrial or commercial activities has more than three persons in its employment, it shall be bound to employ Brazilians in a proportion not less than that prescribed by this chapter.

(1) The general expression "industrial and commercial activities" shall include activities carried on in the following establishments in addition to any others which may be specified by order of the Minister of Labor, Industry and Commerce--

(a) industrial establishments in general;

(b) communication services, transportation by land, sea, river, lake and air;

(c) garages, repair and supply stations for motor vehicles and livery stables;

(d) fishing industry;

(e) commercial establishments in general;

(f) commercial offices in general;

(g) banking establishments, public savings banks, insurance and credit undertakings;

(h) newspaper, publicity and broadcasting establishments;

(i) fee-charging educational establishments, excluding persons teaching in such establishments under religious vows;

(j) druggists' and pharmacists' establishments;

(k) barbers' and hairdressers' establishments and beauty parlors;

(l) establishments for public amusement (excluding theatrical companies) and sports clubs;

(m) hotels, restaurants, bars and similar establishments;

(n) hospital and physiotherapy establishments which charge fees for their services, excluding persons employed in such establishments under religious vows;

(o) mining undertakings;

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(2) Rural undertakings, undertakings carried on in agricultural districts for the purpose of processing or transforming local products and extractive industries other than mining shall not be subject to the obligation to employ a prescribed proportion of Brazilians.

Art. 353. For the purpose of this chapter, aliens who have lived in Brazil for more than ten years and have a Brazilian wife or child, or if they are Portuguese, shall be placed on the same footing as Brazilians, except with respect to engagement in occupations reserved for Brazilians by birth or Brazilians in general.

Art. 354. The proportion of Brazilians to be employed shall be two-thirds of the total, provided that, in view of the special circumstances prevailing in each branch of industry, this proportion may be reduced by an order of the Executive, if it has been duly established by the National Labor Department and the Labor and Social Welfare Statistics Service that the number of Brazilians engaged in the branch of industry in question is insufficient.

Sole Subsection. The above proportion shall apply not only with respect to the total number of employees (subject to the exceptions provided for by this Act) but also with reference to the total amount paid by way of salaries and wages.

Art. 355. For the purposes of the calculation of the proportion of Brazilians to be employed, branch offices, sub-offices and agencies where more than three persons are employed shall be deemed to be independent establishments.

Art. 356. If an undertaking or an individual is engaged in two or more industries for which different proportions are prescribed, the proper proportion shall be observed in each of the said industries.

Art. 357. Employees who perform special technical duties shall not be included in the calculation of the proportion of Brazilians. if in the opinion of the Ministry of Labor, Industry and Commerce there is a shortage of such workers of Brazilian nationality.

Art. 358. It shall not be lawful for any undertaking, whether it is bound to employ a proportionate number of Brazilians or not, to pay to a Brazilian who performs duties deemed be the Ministry of Labor, Industry and Commerce to be similar to those performed by an alien in the employment of the undertaking a wage or salary less than that paid to the said alien, except in the following cases:

(a) in establishments where the employees are not organized on the basis of promotion by seniority, if the Brazilian in question has been employed in the undertaking for less than two years and the alien for more than two years;

(b) if, with the approval of the Ministry of Labor, Industry and Commerce, the staff are organized on the basis of promotion by seniority;

(c) if the Brazilian is an apprentice, helper or assistant and the alien is not;

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(d) in the case of persons employed on commission or at a task rate, if the higher remuneration is due to greater output.

Sole Subsection. In the event of lack of work or suspension of work alien employees shall be dismissed before Brazilians who perform similar duties.

Division II

Annual Returns of Employees

Art. 359. An undertaking shall not in any case engage an alien employee unless he produces an alien's identity book duly filled in.

Sole Subsection. The undertaking shall be bound to enter in the register of employees particulars respecting the nationality of every alien employee and the number of his identity book.

Art. 360. Every undertaking covered by subsection (1) of article 352 of this chapter, irrespective of the number of its employees, shall be bound to submit annually, between May 2nd and June 30th, to the competent departments of the Ministry of Labor, a return in duplicate of all its employees, in conformity with a model to be prescribed.

(1) The returns shall indicate any alterations which have occurred since the sending in of the previous return in red ink. In the case of a new undertaking a return headed "First return" shall be made within thirty days of the date of the registration of the undertaking in the National Department of Industry and Commerce or the competent section thereof.

(2) The returns shall be forwarded directly to the competent departments of the Ministry of Labor, or, in places where there are no departments of the Ministry, to the Federal tax-collecting offices of the Ministry of Finance, which shall transmit them forthwith to the departments of the Ministry. A special receipt shall be issued for the returns and the production of this receipt shall be compulsory in the event of inspection, until the attested copy of the statement has been returned to the employer,

(3) If the undertaking has no employees, a declaration to this effect shall be made.

Art. 361. If any contravention of the regulations is found in the returns submitted, a time limit of ten days shall be granted to the person guilty of the contravention for submitting his defense, after which the case shall be examined by the competent authority.

Art. 362. The departments responsible for supervising the observance of this chapter shall keep a special card-index of undertakings, containing particulars relating to their compliance with the provisions of this chapter; they shall provide the persons concerned with any certificates of discharge they require, within 30 days of the date of application.

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(1) The certificates of discharge shall be valid until the thirtieth day of September of the year following the year to which they refer and shall be subject to a fee equal to one-tenth of the regional minimum wage. Such certificates shall be required before any tender or contract can be negotiated with the Government of the Union, with any state or municipality or with any semi-public institution subordinate to the foregoing, and also before any permit issued to a foreign undertaking to operate in Brazil can be renewed.

(2)The top copy of the return, after being considered by the department responsible for supervision, shall be transmitted each year to the National Labor Department, to assist it in its study of employment market conditions generally and the skilled labor situation in particular.

(3) The second copy of the return shall be transmitted by the competent department to the Social Welfare and Labor Statistics Service, and the third copy, duly attested, shall be returned to the undertaking.

Division III

Penalties

Art. 363. Proceedings in the case of contraventions of this chapter. shall be conducted in conformity with the provisions of the Title entitled "Application of administrative fines", in so far as they are applicable; the prescribed forms shall be used for all documents.

Art. 364. (Amended by Law No. 7855 of Oct. 24, 1989) Contraventions of this chapter shall be punished by a fine of not less than 6 nor more than 600 regional reference values.

Sole Subsection. In the case of an undertaking which holds a concession for a public service or of a foreign company authorized to carry on activities in the country, if the guilty undertaking, after having been fined for a contravention, still fails to comply with the provisions in question, the concession or the authorization may be withdrawn.

Division IV

General Provisions

Art. 365. This chapter shall not affect the restrictions in force which make Brazilian nationality requisite for engagement in specified occupations nor those relating to frontier zones, in conformity with the relevant legislation.

Art. 366. Pending the issue of the identity book referred to in article 359 of this chapter, a certificate issued by the competent service of the Aliens Register stating that the employee has applied for a residence permit shall be deemed to be a valid document of a temporary character.

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Art. 367. Until the Labor and Social Welfare Statistics Service has at its disposal the statistical data requisite to fix a suitable proportion for each branch of industry, the reduction referred to in article 354 may be authorized by an order of the Minister of Labor, Industry and Commerce in pursuance of representations made with reasons by the industrial association concerned.

Sole Subsection. The Labor and Social Welfare Statistics Service shall undertake the necessary inquiries for the purposes of this chapter and shall keep them up to date.

Division V

Special Provisions Respecting Nationality in the Mercantile Marine

Art. 368. The command of a Brazilian merchant vessel shall not be exercised except by a Brazilian by birth.

Art. 369. (Amended by Law No. 5683 of July 21, 1971) The crew of a Brazilian vessel or ship shall be composed exclusively of at least two-thirds of Brazilians.

Sole Subsection. The provision of this article shall not be applied to Brazilian fishing vessels, subject to specific legislation.

Art. 370. Shipping undertakings shall compile lists or the crews of their vessels and shall send the said lists within the time limit specified in division II of this chapter to the maritime labor office for the district where they have their offices.

Sole Subsection. The lists referred to in this article shall be drawn up, as regards classification of the members of the crew according to grades and duties, in conformity with the schedules approved by the regulations for harbor authorities.

Art. 371. The provisions of this division shall apply likewise to shipping services on rivers and lakes and to pilot services at bars, in ports and on rivers, lakes and canals.

CHAPTER III

PROTECTION OF WOMEN WORKERS (Labor Law)

Division I

Hours of Work and Conditions of Employment (Labor Law)

Art. 372. The rules governing the employment of men shall apply to the employment of women, in so far as they do not conflict with the special protective rules laid down in this chapter.

Sole Subsection. The provisions mentioned in this article shall not apply to employment in workplaces where only members of the family of the woman concerned are employed under the direction of her husband, father, mother, guardian or son.

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Art. 373. The normal hours of work of women shall be eight hours in the day except in cases for which shorter hours are prescribed.



Art. 376. (Amended by the Constitution, Art. 7, XVI) Exclusively in exceptional cases for reasons of force majeure, the hours of day work may be increased beyond the statutory limits or the limits fixed by agreement, provided that they do not in any case exceed twelve hours; the hourly rate of wages for such overtime shall be not less than 50% in excess of the rate for a normal hour's work.

Sole subsection. Notice of the extraordinary prolongation mentioned in this article shall be given in writing to the competent authority within a time limit of forty-eight hours.

Art. 377. The adoption of measures for the protection of the employment of women shall be deemed to be a matter of public interest and shall not in any case justify a reduction of wages.


Division II

Night Work



Art. 381. The remuneration paid to women for night work shall be higher than that paid for day work.

(1) For the purposes of this article, wages shall be increased by not less than 20% (twenty per cent.).

(2) In the case of the night work of women an hour shall be deemed to be equal to fifty-two minutes thirty seconds.

Division III

Rest Periods

Art. 382. A rest period of not less than eleven consecutive hours shall be granted between two working days.

Art. 383. In the course of the working day every woman employee shall be granted a break for rest and a meal of not less than one hour nor more than two hours, except in the case specified in subsection (3) of article 71.

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Art. 384. In the event of the prolongation of the normal hours of work a break of not less than fifteen minutes shall be granted before the overtime begins.

Art. 385. The weekly rest shall amount to twenty-four consecutive hours and shall be given wholly or partly on Sunday, except on account of reasons of public interest or reasons arising out of the urgent necessity of the service, in the opinion of the competent authority, in conformity with the general regulations; in this case the weekly rest shall be given on another day.

Sole Subsection. The rules laid down in the general legislation respecting the prohibition of work on civil and religious holiday shall be observed likewise.

Art. 386. If work is performed on Sunday, fortnightly shifts shall be organized to ensure the granting of Sunday rest.

Division IV

Methods of Work and Workplaces


Art. 388. After the competent authority has examined the case and given an opinion thereon, the Minister of Labor, Industry and Commerce may grant total or partial exemption from the prohibition laid down in the last preceding article, if, owing to the utilization of new processes or the adoption of protective devices, the work deemed to be dangerous or unhealthy has ceased to be so.

Art. 389. Every employer shall be required--

(1) to take steps for the protection of health in his processes and workplaces, such as ventilation, lighting and other measures deemed by the competent authority to be necessary for the safety and comfort of women;

(2) to install drinking fountains, washbasins and sanitation and a sufficient number of chairs or benches to enable women to work without undue physical fatigue;

(3) to install cloakrooms with individual lockers for women, except in commercial establishments, offices, banks and similar activities where it is not necessary for them to change their clothes and any other activities prescribed by the competent occupational safety and health authority, where it shall be sufficient to provide drawers or shelves where women workers can keep their personal effects;

(4) to supply free of charge, in accordance with instructions issued by the competent authority, personal protective equipment, such as goggles, masks, gloves and special clothing, for the protection of the eyes, respiratory organs and the skin, according to the nature of the work.

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(1) Every establishment employing not less than 30 women over 16 years of age shall provide a suitable room where nursing mothers can leave their infants under supervision and care.

(2) The obligation imposed by subsection (1) may be waived if a district nursery is maintained, either directly or by agreement with other public or private institutions, by the undertakings concerned, which may make joint arrangements for the purpose or entrust responsibility for the organization of the nursery to the Industrial Welfare Service, the Commercial Welfare Service, the Brazilian Assistance League or the industrial associations.

Art. 390. An employer shall not employ a woman on work which demands the use of muscular force involving the handling of weights exceeding twenty kilograms in the case of continuous work or twenty-five kilograms in the case of occasional work.

Sole Subsection. The prohibition laid down in this article shall not apply to the moving of articles by pushing or drawing of trucks on rails, barrows, handcarts, or other suitable mechanical devices.

Division V

Maternity Protection

Art. 391. The fact that a woman marries or becomes pregnant shall not be deemed to be a legitimate reason for the termination of her contract of employment.

Sole Subsection. Every clause in regulations of any kind or in a collective or individual contract of employment which restricts the right of a woman to retain her employment in the event of marriage or pregnancy shall be null and void.

Art. 392. It shall not be lawful to employ an expectant mother during the four weeks before and the eight weeks after her confinement.

(1) For the purpose of this article the date on which a woman is to leave her employment shall be determined on the basis of a medical certificate issued in accordance with article 375, which shall be countersigned by the employee.

(2) In exceptional cases the rest periods before and after a woman's confinement may be increased by two weeks each, on production of a medical certificate issued in the manner prescribed in subsection (1).

(3) A woman having a premature confinement shall invariable be entitled to the 12 weeks instituted by this article.

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(4) In exceptional cases an expectant mother may be allowed to change her job, on production of a medical certificate issued in the manner prescribed in subsection (1).

Art. 393. During the period referred to in article 392 a woman shall be entitled to her full remuneration and, where her remuneration fluctuates, it shall be calculated on the basis of her average for the last six months' employment; she shall also retain any acquired rights and advantages and shall be entitled to resume her previous job.

Art. 394. A pregnant woman shall be entitled to terminate the engagement arising out of a contract of employment if it is proved by a medical certificate that the work to be performed by her is prejudicial to her condition.

Art. 395. In case of a miscarriage which is proved by a certificate issued by a medical officer, a woman shall be granted a rest period of two weeks with pay and shall be entitled to return to the post which she held before leaving the employment.

Art. 396. A woman who nurses her child shall be entitled to two special rest periods a day, of half an hour each, until the child is six months old.

Sole Subsection. If necessary for the health of the child, the period of six months may be prolonged at the discretion of the competent authority.

Art. 397. The Industrial Welfare Service, the Commercial Welfare Service, the Brazilian Assistance League and other public institutions concerned with children's welfare shall, depending on their financial possibilities, maintain or subsidize nursery schools and kindergartens, which shall be located in areas with the greatest density of working population, for the special benefit of women worker's children.

Art. 398. Repealed by L.D. #229 of Feb. 28, 1967.

Art. 399. The Minister of Labor, Industry and Commerce shall confer a diploma of merit upon employers who organize and maintain nurseries and institutions for the protection or children of preschool age, where the said services are noteworthy on account of the generosity shown and the efficiency of the equipment.

Art. 400. The premises set aside for the children of women workers during the nursing period shall have at least a nursery, a small room for nursing, a dietetic kitchen and sanitary accommodation.

Division VI

Penalties

Art. 401. (Amended by Law No. 7855 of Oct. 24, 1989) In the event of a contravention of any provision of this chapter, the employer shall be liable to a fine of not less than 2 nor more than 20 regional reference values, which shall be applied in the Capital by the Regional Labor Offices or by the authorities to which this duty has been delegated.

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(1) The maximum penalty shall always be applied:

(a) if it is found that fraud or deceit has been employed for the purpose of evading the application of the provisions of this chapter;

(b) in the event of a repetition of the offense.

(2) The provisions of the Title entitled "Application of administrative fines" shall apply to the procedure for the establishment of contraventions and the imposition and recovery of fines, subject to compliance with the provisions of this article.

CHAPTER IV

PROTECTION OF EMPLOYMENT OF YOUNG PERSONS

Division I

General Provisions

Art. 402. The expression "young person" for the purposes of this Consolidation means a worker between the ages of 12 and 18 years.

Sole Subsection. The employment of a young person shall be governed by the provisions of this chapter, except in the case of employment in workplaces where only members of the young person's family are employed under the direction of his father, mother or guardian: Provided that articles 404 and 405 and Division II shall be observed.

Art. 403. It shall not be lawful to employ a person under 12 years of age.

Sole Subsection. The employment of a young person between the ages of 12 and 14 years shall be subject to the following conditions, in addition to those laid down in this chapter:

(a) he shall be guaranteed the right to attend school for the purpose of receiving at least a primary education;

(b) the services he performs shall consist of light work which is not harmful to his health or normal development.

Art. 404. Young persons under eighteen years of age shall not be employed on night work; work performed between 10 P.M. and 5 A.M. shall be deemed to be night work.

Art. 405. It shall not be lawful to employ a young person--

(1) in dangerous or unhealthy workplaces or types of work appearing in a schedule to be approved for the purpose by the Director-General of the National Occupational Safety and Health Department;

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(2) in workplaces or types of work that are prejudicial to his morals.

(1) The prohibition imposed by clause (1) shall not apply to young apprentices over 16 years of age who are following an apprentice training course in the manner prescribed by law, if the workplaces have previously been visited and approved by the competent occupational safety and health authority, subject to confirmation by the National Occupational Safety and Health Department; the young persons concerned shall be given a six-monthly medical examination.

(2) Employment in streets, squares and other public places shall be subject to the prior delivery of a permit from the juvenile court, which shall satisfy itself that the young person's employment is essential to his own maintenance or the maintenance of his parents, grandparents, brothers or sisters and that such employment will not be prejudicial to his morals.

(3) The following shall be deemed to be prejudicial to a young person's morals:

(a) employment in any capacity whatsoever in variety theaters, cinemas, night clubs, casinos, cabaret shows, dance halls and similar establishments;

(b) employment in circuses as an acrobat, clown, gymnast or in any similar capacity;

(c) employment in the production, composition, delivery or sale of written or printed matter, posters, drawings, engravings, paintings, emblems, images or other objects which, in the opinion of the competent authority, may be prejudicial to his morals;

(d) the retail sale of alcoholic beverages.

(4) In places where there are officially approved institutions for the protection of young workers the employment permit mentioned in subsection (2) shall be granted only to young persons under the care of such an institution.

(5) The provisions of article 390 and the sole subsection of that article shall apply to young persons.

Art. 406. A juvenile court may give permission for a young person to be employed in cases covered by clauses (a) and (b) of subsection (3) of article 405--

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(1) if the performance is of an educational nature or the scene in which he takes part is not such as to be prejudicial to his morals;

(2) if it is certified that his employment is essential to his own maintenance or the maintenance of his parents, grandparents, brothers or sisters and will not be prejudicial to his morals.

Art. 407. If the competent authority finds that the work performed by a young person is prejudicial to his health, physical development or morals, it may require him to give up the employment; in this case the undertaking shall afford him all possible facilities for a change of job.

Sole Subsection. Where an undertaking fails to take all possible measures recommended by the competent authority to enable a young person to change his job, the contract of employment shall be canceled in accordance with article 483.

Art. 408. The person legally responsible for a young person may apply for the cancellation of the latter's contract of employment if his work is likely to be prejudicial to his physical health or morals.

Art. 409. For the purpose of making better provision for the safety in employment and the health of young persons the supervising authority may prohibit young persons from remaining in the workplace during breaks.

Art. 410. The Minister of Labor, Industry and Commerce may grant exemptions from a prohibition of employment arising from the schedule mentioned in sub-paragraph (a) of article 405, if it is established that the dangerous or unhealthy nature of the workplace or employment which gave rise to the prohibition has been wholly or partially eliminated.

Division II

Hours of Work

Art. 411. The hours of work of young persons shall be governed by the statutory provisions relating to hours of work in general, subject to the restrictions laid down in this chapter.

Art. 412. A rest period of not less than eleven hours shall be granted after every period of actual work, whether continuous or divided into two spells.

Art. 413. (Amended by Decree Law No. 229 of Feb. 28, 1967 and by the Constitution (Art. 7, XVI) It shall not be lawful to prolong a young person's normal daily hours of work, except:

I) by not more than two hours, regardless of any increase in pay, if provision to that effect is made in a collective agreement or collective contract concluded in accordance with Title VI of this Consolidation: Provided that the extra hours on one day shall be off-set by shorter hours

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on another, so that the limit of 48 hours a week, or such lower limit as is fixed by law, is not exceeded;

2) by way of exception, in case of force majeure, up to a maximum of 12 hours, subject to an increase of at least 50% in the normal hourly rate of pay, if the young person's work is essential to the operation of the establishment.

Sole Subsection. The provisions of article 375, the sole subsection of article 376 and articles 378 and 384 of this Consolidation shall apply to any prolongation of a young person's hours of work.

Art. 414. If a young person under eighteen years of age is employed in more than one establishment, the hours of work performed by him in each establishment shall be added together.

Division III

Admission to Employment and Young Persons' Work Books

Art. 415. Repealed by Decree-Law No. 926 of Oct. 10, 1969.

Art. 416-Art. 417. Repealed by Law No. 5686 of Aug. 3, 1971.


Art. 419-Art. 423. Repealed by Law No. 5686 of Mar. 8, 1971.

Division IV

Duties of Persons Legally Responsible for Young Persons and of Employers Apprenticeship

Art. 424. A person legally responsible for a young person (father, mother or guardian) shall be bound to remove him from any employment which reduces to a considerable extent the time at his disposal for study or the rest periods necessary for his health and physical development, or which prejudices his moral education.

Art. 425. Employers of young persons under eighteen years of age shall be bound to ensure that the conditions in their establishments or undertakings satisfy the requirements of morality and decency and also the rules for hygiene and safety in employment.

Art. 426. In the case specified in article 407 the employer shall be bound to give the young person all possible facilities for a change of work.

Art. 427. Employers in whose undertakings or establishments young persons are employed shall be bound to allow the said young persons the time necessary to attend school.

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Sole Subsection. Establishments which are situated in a locality where the school is at a distance of more than two kilometers, and which employ permanently more than thirty young persons over fourteen but under eighteen years of age who cannot read and write, shall be bound to provide a suitable room in which elementary instruction can be given them.

Art. 428. The provident institutions, acting directly or in collaboration with the employers, with due consideration for local conditions and resources, shall promote the establishment or holiday camps at the seaside and in the mountains, and shall contribute to the cost of visits of young workers to such camps, in groups according to age and individual conditions, during the holiday period or at other times when necessary; every guarantee for the improvement of the health of the young persons shall be provided. Measures shall be taken likewise to encourage regular attendance, during hours or leisure, at sports fields, recreation grounds, other similar institutions and suitable social organizations where young persons may acquire the habits of life in a community in an atmosphere conducive to health of mind and body.

Art. 429. Industrial establishments of all kinds, including those engaged in transport, communications and fishing, shall be bound to employ and to enroll in the courses maintained by the National Service for Industrial Apprenticeship (SENAI):

(a) a number of apprentices equal to not less than five per cent nor more than 15% of the number of employees in each establishment in posts which require vocational training;

(b) Repealed by Decree-Law No. 9576 of Aug. 12, 1946.

Sole Subsection. In the calculation of the percentages specified in the first part of this article, any fraction shall be deemed equivalent to a unit (i.e., the percentage shall be calculated to the next higher integral number), and shall therefore admit one apprentice.

Art. 430. Other things being equal, in the admission of apprentices to an industrial establishment preference shall be given in the first place to children (including orphan children) of employees and in the second place to the brothers and sisters of employees.

Art. 431. Candidates for admission to employment as apprentices must have attained at least the age of fourteen years and in addition must satisfy the following conditions:

(a) They must have completed their elementary education or must possess at least the minimum standard of education requisite for vocational training.

(b) They must be physically and mentally fit for the work in which they wish to be employed; this shall be ascertained by a process of vocational selection.

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(c) They must not be suffering from any contagious disease and must have been vaccinated against small pox.

Sole Subsection. Candidates who have been rejected on the occasion of the vocational selection test shall, as far as possible, be given vocational guidance for the purpose of securing their admission to an employment better suited to the qualities and capacity which they have shown.

Art. 432. Apprentices shall be bound to attend the apprenticeship courses in which they have been enrolled.

(1) If any apprentice fails to attend the classes of the apprenticeship course in which he is enrolled, without good reason, he shall forfeit his wages for the days on which he failed to attend the classes.

(2) Repeated failure to comply with the obligation specified in this article, or failure to make reasonable progress, shall be deemed to be sufficient cause for the dismissal of the apprentice.

Art. 433. The employer shall be bound:

(a) to send every year to the competent divisions of the Ministry of Labor, between Nov. 1st and Dec. 31st, a list in duplicate of all the young persons in his employment, in conformity with a model form to be issued by the above-mentioned Ministry;

(b) to display the time table and a copy of the provisions of this chapter in easily legible characters in a conspicuous place.

Sole Subsection. Repealed by Law No. 3519 of Dec. 30, 1958.

Division V

Penalties

Art. 434. (Amended by Decree-Law No. 229 of Feb. 28, 1967, and by Law No. 7855 of Oct. 24, 1989) Any person contravening the provisions of this chapter shall be liable to a fine equal to the 30 regional reference values, which shall be imposed as many times as there are young persons employed in contravention of the law: Provided that the total fine shall not exceed 50 times the regional reference value, except in the event of a repetition of the offense, in which case this latter total may be doubled.

Art. 435. (Amended by Decree-Law No. 229 of Feb. 28, 1967 and Law No. 7855 of Oct. 24, 1989) Any undertaking making an entry in a young person's Labor and Social Welfare work book that is not provided for by law shall be liable to a fine equal to 30 regional reference values and to pay the cost of issuing a new book.

Art. 436. (Amended by Decree Law No. 229 of Feb. 28, 1967 and Law No. 7855 of Oct. 24, 1989) A medical practitioner refusing without a valid reason to issue the certificates

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referred to in article 418 shall be liable to a fine equal to 30 regional reference values, which shall be doubled in the event of a repetition of the offense.

Art. 437. If a person who is legally responsible for an employed young person is guilty of a contravention or the provisions of this chapter or fails to carry out the duties incumbent upon him under this chapter, or in the case mentioned in subsection (2) of article 419 is a party to preventing the young person from completing his education, he shall be liable to forfeiture of his paternal authority or removal from the position of guardian, as the case may be, without prejudice to the imposition of the fine.

Sole Subsection. If the father, mother or guardian of a young person, by any act of commission or omission, is a party to the employment of a young person in any of the jobs covered by subsection (1) of article 405, he or she shall forfeit the paternal authority over the young person or shall be removed from the position of guardian, without prejudice to the imposition of the fine.

Art. 438. (Amended by Decree Law No. 229 of Feb. 28, 1967) The Regional Labor Offices or the officials appointed thereby for the purpose shall be competent to impose the penalties provided for in this chapter.

Sole Subsection. The provisions of the Title entitled "Application of administrative fines" shall apply to the procedure for the establishment of contraventions and for the application and recovery of fines, subject to compliance with the provisions of this article.

Division VI

Concluding Provisions

Art. 439. It shall be lawful for a young person to sign a receipt for the payment of his wages. Nevertheless, in the case of the cancellation of the contract of employment, a young person under the age of eighteen years shall not give a receipt to the employer for the payment of the compensation due unless the persons legally responsible for him are present.

Art. 440. A period of prescription shall not in any case run to the prejudice of young persons under the age of eighteen years.

Art. 441. The schedule mentioned in clause (1) of article 405 shall be revised every two years.

TITLE IV

INDIVIDUAL CONTRACT OF EMPLOYMENT

CHAPTER I

GENERAL PROVISIONS

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Art. 442. "Individual contract of employment" (contrato individual de trabalho) shall mean an agreement, whether tacit or express, respecting the employment relation.

Sole Subsection. (Added by Law No. 8949 of Dec. 9, 1994, published and effective Dec. 12, 1994) Whatever the branch of activity of a cooperative society, there shall exist no employment relationship between the society and its members, nor between the members and persons receiving the services of the cooperative.

Art. 443. An individual contract of employment may be entered into tacitly or explicitly, orally or in writing, and for a specified period or for an unspecified periods.

(1) A contract of employment for a specified period shall mean a contract whose period of operation is fixed in advance or depends upon the performance of specified services or on the occurrence of a particular event, the approximate date of which can be foreseen.

(2) A contract for a specified period shall be valid only for--

(a) services whose nature or limited duration justifies the fixing of a period beforehand;

(b) activities carried on by an undertaking on a temporary basis;

(c) trial contracts.

Art. 444. The contractual employment relations may be agreed upon freely by the parties concerned, in so far as they are not contrary to the provisions for the protection of labor, to the relevant collective agreements or to the decisions of the competent authorities.

Art. 445. No contract of employment for a specified period shall provide for a longer duration than two years, for which purpose the rule contained in article 451 shall be observed.

Sole Subsection, The duration of a trial contract shall not exceed 90 days.


Art. 447. In the absence of agreement or of evidence concerning the existence of an oral contract, the contract shall be presumed to exist, as if it had been concluded by the parties, in conformity with the statutory requirements for the conclusion of a lawful contract.

Art. 448. A change in the ownership or in the legal character of the undertaking shall not affect the contract of employment of the employees thereof.

Art. 449. In the event of bankruptcy, all salaries due to the employees and all indemnities to which they have a right shall constitute privileged debts.

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(1) In the case of bankruptcy or composition proceedings, the whole of the wages due to the employee and one-third of any compensation to which he is entitled shall be a privileged debt; the remaining two-thirds of the compensation shall be an unsecured debt.

(2) If a composition with creditors is-reached in the course of the bankruptcy proceedings, the contracting parties may declare the cancellation of the contract of employment and the consequent liability for payment of compensation to be null and void, provided that the employer pays not less than half the wages which would have been due to the employee during the intervening period.

Art. 450. If an employee is appointed, by special commission, provisionally, or as a casual or temporary substitute for another employee, to a post other than that which he holds in the undertaking, the period of employment in the said post shall be taken into account and he shall be guaranteed reinstatement in his former post.

Art. 451. If a contract of employment for a specified period is prolonged more than once, whether tacitly or expressly, it shall be deemed to be a contract for an unspecified period.

Art. 452. Every contract which is entered into not more than six months after the termination of another contract which was entered into for a specified period, shall be deemed to be a contract for an unspecified period unless the termination of the former contract was dependent upon the performance of specified work or the occurrence, of certain events.

Art. 453. If an employee is re-engaged, periods (even if not continuous) during which he was formerly employed in the undertaking shall be taken into account in the calculation of his total period of service, unless he was dismissed for a serious offense or was paid statutory compensation.


Art. 455. In the case of sub-contractors' contracts, the sub-contractor shall be liable for the obligations arising out of the contracts of employment to which he is a party, provided nevertheless that the employees shall have the right to bring an action against the principal if the sub-contractor fails to fulfill the said obligations.

Sole Subsection. Nevertheless, the principal shall be entitled to bring an action under the provisions of the civil law against the sub-contractor for the recovery of sums paid and shall also have the right to withhold sums due to the sub-contractor as a guarantee for the fulfillment of the obligations imposed by this article.

Art. 456. Evidence of the existence of an individual contract of employment shall be furnished by the entries in the work book or by an instrument in writing and shall be confirmed by all means permitted by law.

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Sole Subsection. In the absence of evidence or of an express stipulation with respect to this, it shall be presumed that the employee has undertaken to perform all work compatible with his personal condition.

CHAPTER II

REMUNERATION

Art. 457. For all statutory purposes, the remuneration of the employee shall include both the wages due from and paid directly by the employer in return for services and also amounts received by the employee by way of tips.

(1) (Amended by Law No. 1999 of Oct. 1, 1953) The wages shall include not only the agreed fixed amount but also commission, percentages, adjusted gratifications, per diem for travel and bonuses paid by the employer.

(2) (Amended by Law No. 1999 of Oct. 1, 1953) Expenses, as well as per diem for travel that does not exceed 50% of the wages received by the employee shall not be included in wages.

(3) (Added by Decree Law No. 229 of Feb. 28, 1967) The expression "tips" shall be deemed to include not only any amount given by a customer to an employee of his own free will but also any amount that the employer charges a customer as an addition to his bill, whatever the reason for the charge, if it is intended to be distributed among the employees.

Art. 458. (Amended by Decree-Law No. 229 of Feb. 28, 1967) Board, lodging, clothing, and other benefits in kind that the enterprise normally supplies to the employee under the contract or in accordance with established custom shall be deemed for all legal purposes to be part of the wage, in addition to any payments made in cash. In no circumstances shall payment be made in the form of alcoholic beverages or harmful drugs.

(1) (Amended by Decree Law No. 229 of Feb. 28, 1967) The value assigned to benefits in kind shall be fair and reasonable and shall not in any given case exceed the value of the percentages fixed for the components of the minimum wage by articles 81 and 82.

(2) (Amended by Decree Law No. 229 of Feb. 28, 1967) For the purposes of this article clothing, equipment and accessories supplied to the employee and used at the workplace for the performance of his work shall not be deemed to be wages.

(3) (Added by Law No. 8860 of Mar. 24, 1994, published and effective on March 25, 1994) Housing and board supplied as a wage supplement must serve the purposes for which they are intended and may not exceed 25% and 20%, respectively, of the contracted wage.

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(4) (Added by Law No. 8860 of Mar. 24, 1994, published and effective on March 25, 1994) In the case of collective housing, the value of the corresponding wage supplement shall be obtained by means of the division of the fair value of the housing by the number of co-occupants, the use of the same residential unit by more than one family being forbidden in any case.

Art. 459. Except in the case of commissions, percentages and bonuses, the intervals fixed for the payment of wages shall not exceed one month, irrespective of the nature of the employment.

(1) (Amended by Law No. 7855 of Oct. 24, 1989) If it has been agreed that payment shall be made monthly, the wages shall be paid not later than the fifth working day of the month next following the month for which they are due.

(2) It shall not be lawful for an undertaking which maintains a shop for the sale of goods to its employees or runs services intended to provide them with benefits in kind to exert any coercion or offer any inducement for them to use the shop or services,

(3) Where it is impossible for the employees to have access to shops or services not maintained or run by the undertaking, it shall be lawful for the competent authority to provide for suitable steps to be taken to enable goods to be sold or services provided at reasonable prices on a non-profit-making basis for the employees benefit.

(4) Subject to the provisions of this chapter it shall not be lawful for an undertaking to impose any kind of restriction on an employee's freedom to use his wages as he wishes.

Art. 460. In the absence of an agreement respecting the wage, or of evidence respecting the amount agreed upon, the employee shall be entitled to a wage equal to the wage paid to employees in the same undertaking who perform equivalent work or to the wage habitually paid for similar work.

Art. 461. (Amended by Law No. 1723 of Nov. 8, 1952) Where the duties performed are identical, equal wages shall be paid, irrespective of sex, nationality or age, for all work of equal value, performed for the same employer in the same locality.

(1) (Amended by Law No. 1723 of Nov. 8, 1952) For the purposes of this chapter, work of equal value shall mean work of equal output and the same technical perfection, performed by persons whose period of service does not differ by more than two years.

(2) (Amended by Law No. 1723 of Nov. 8, 1952) The provisions of this article shall not apply to cases of promotion by seniority, in which case promotions must observe the criteria of seniority and merit.

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(3) (Amended by Law No. 1723 of Nov. 8, 1952) In the case of the preceding paragraph, the promotions must be made alternatively by merit and by seniority, within each occupational category.

(4) (Amended by Law No. 5798 of Aug. 31, 1972) A worker readapted in a new post by reason of a physical or mental deficiency attested by the competent body of the Social Welfare Department shall not be included in the concept of equal pay.

Art. 462. The employer shall not make any deductions from the wages of the employee, except on account of advances made or under statutory provisions or a collective contract.

(1) (Amended by Decree Law No. 229 of Feb. 28, 1967) In the event of damage caused by the employee, a deduction from wages shall be lawful, if an agreement has been made to this effect or the damage was caused by the employee willfully.

(2) (Added by Decree Law No. 229 of Feb. 28, 1967) An enterprise that maintains a warehouse for sale of merchandise to employees or that provides services in kind to them shall be forbidden to exercise any coercion or inducement in order to get the employees to utilize the warehouse or the services.

(3) (Added by Decree Law No. 229 of Feb. 28, 1967) If access of the employees to warehouses or services not maintained by the enterprise is impossible, the competent authority may determine the adoption of adequate measures to insure that the merchandise can be sold and the services rendered at reasonable prices, without intent of profit, in benefit of the employees.

(4) (Added by Decree Law No. 229 of Feb. 28, 1967) Enterprises are forbidden to limit in any manner the liberty of the employees to dispose of their wages, the provisions of this Chapter being observed.

Art. 463. The money wage shall be paid in the legal currency of the country.

Sole Subsection. The payment of wages otherwise than in conformity with this article shall be invalid.

Art. 464. Wages shall be paid against a receipt signed by the employee; if the employee is illiterate, his finger prints shall be affixed, or if this is not possible the receipt shall be signed by another person at his request.

Art. 465. Wages shall be paid on a working day at the workplace, within working hours or immediately thereafter.

Art. 466. Commission and percentages shall not be payable until the transaction in respect of which they are payable has been completed.

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(1) In the case of transactions carried out in installments, the proportionate amount of the percentage or commission shall be paid on the occasion of each settlement.

(2) The termination of the employment relation shall not affect the payment of commission or percentages due as prescribed in this article.

Art. 467. In the event of the cancellation of the contract of employment, whether by the employer or by the employee, if a dispute arises respecting a part of the wages, the employer shall be bound to pay to the employee at the time of his appearance in the labor court the part of the wages which is not in dispute; otherwise he shall , be sentenced to pay double the amount of the said part.

CHAPTER III

MODIFICATION

Art. 468. The conditions of individual contracts of employment shall not be altered except by mutual consent, and not even then if the alteration is directly or indirectly prejudicial to the employee; any clause which infringes this guarantee shall be invalid.

Sole subsection. A decision by the employer to remove an employee from a position of trust and transfer him back to a post which he held previously shall not be deemed to be a unilateral alteration of the contract of employment.

Art. 469. The employer shall not transfer an employee without his consent to a locality other than that specified in the contract; a transference which does not necessarily entail a change of residence shall not be deemed to be a transference for the purpose of this article.

(1) (Amended by Law No. 6203 of Apr. 17, 1975) The provisions of this article shall not apply to employees in positions of trust or those whose contracts contain a clause entailing transference as an explicit or implicit condition of the contract, when the transfer originates from a real necessity of service.

(2) Transference shall be permissible if the establishment where the employee works is closed down.

(3) (Amended by Law No. 6203 of Apr. 17, 1975) In the event of necessity of service, the employer may transfer an employee to a locality different from that which is stated in the contract, notwithstanding the restrictions of the preceding article, but, in this case, the employer shall be obligated to pay the employee a supplementary payment, which shall not be less than 25% of the wages that the employee received in the first locality, as long as the situation continues.

Art. 470. (Amended by Law No. 6203 of Apr. 17, 1975) Any expenses incurred on account of the transference shall be defrayed by the employer.

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CHAPTER IV

SUSPENSION AND INTERRUPTION

Art. 471. An employee who has been absent from his employment shall be entitled on his return to all advantages which may have been granted during his absence to the category to which he belongs in the undertaking.

Art. 472. The absence of the employee on account of the exigencies of military service or any other public duty shall not in any case be a ground for the alteration or cancellation of the contract of employment by the employer.

(1) An employee shall not be entitled to return to the post from which he has been absent on account of the exigencies of military service or any other public duty unless he notifies the employer of his intention by telegram or registered letter within a time limit not exceeding thirty days reckoned from the date of his discharge from military service or the termination of the public duty to be performed by him.

(2) In the case of a contract for a specified period, if the parties concerned so agree, the period of absence shall be disregarded in the calculation of the duration of the contract.

(3) (Added by Decree Law No. 3 of Jan. 27, 1966) In the event of a relevant national security interest, the competent authority may request the absence of an employee from the service or workplace, without which a suspension of the labor contract shall be deemed.

(4) (Added by Decree Law No. 3 of Jan. 27, 1966) The absence to which the preceding paragraph refers shall be requested by the competent authority directly to the employer, in representation based on a hearing with the Regional Labor Attorney, who shall provide immediately for the installation of the competent administrative inquiry.

(5) (Added by Decree Law No. 3 of Jan. 17, 1966) During the first 90 days of that absence, the employee shall continue receiving his remuneration.

Art. 473. (Amended by Decree Law No. 229 of Feb. 28, 1967) An employee may absent himself from work without loss of pay:

I. for up to two consecutive days on the death of a spouse, a relative in the ascending or descending line, a brother or sister or a person entered in his Labor and Social Welfare work book as a dependent;

II. for up to three consecutive days on marriage;

III. (Amended by the Constitution, Art. 10, (1)) for 5 days on the birth of a child, which shall be taken during the first week following the child's birth;

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IV. for one day in the course of every 12 months of employment, if he is a duly certified blood donor;

V. for up to two days, whether consecutive or not, to register as an elector in accordance with the relevant legislation.

VI. (Added by Decree Law No. 757 of Aug. 12, 1969) for the period of time it shall take to fulfill the necessities of Military Service as referred to in letter c of Article 65 of Law No. 4375 of August 17, 1964 (Law of Military Service).

Art. 474. Suspension of an employee for more than thirty consecutive days shall be deemed to be unlawful cancellation of the contract of employment.

Art. 475. If an employee is granted an invalidity pension, his contract of employment shall be suspended for the period during which the invalidity pension is payable in conformity with the social welfare laws.

(1) (Amended by Law No. 4824 of Nov. 5, 1965) If the employee recovers his working capacity and the pension is canceled, he shall be entitled to return to the post which he held at the time when the pension was granted; nevertheless, the employer shall have the right to cancel the contract of employment on payment of compensation in conformity with articles 477 and 478, unless the employee has tenure, in which case the compensation must be paid in the manner set forth in Article 497.

(2) If the employer has engaged a substitute for the pensioned employee, he shall be entitled to cancel the contract of employment entered into with the substitute, without payment of compensation, if the latter, at the time of the conclusion of the contract, was indubitably aware of its temporary nature.

Art. 476. If an employee is in receipt of sickness insurance benefits or assistance in case or sickness, he shall be deemed to be on leave of absence without pay for the duration of the said benefit or assistance.

CHAPTER V

CANCELLATION

Art. 477. (Amended by Law No. 5584 of June 26, 1970) Where no fixed term to the contract has been stipulated and where the contract does not of itself give rise to cessation of the employment relationship, the employee shall be entitled to receive from his employer compensation based on the highest remuneration he received in the undertaking.

(1) (Amended by Law No. 5584 of June 26, 1970) A letter of resignation or signed document terminating a contract of employment, signed by an employee having more than 1 year's service to his credit, shall only be

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valid when drawn up with the assistance of the respective trade union or before the competent authority of the Ministry of Labor.

(2) (Amended by Law No. 5584 of June 26, 1970) Irrespective of the grounds for or mode of terminating the contract, the nature and exact amount of each fraction of the remuneration paid to the employee shall be indicated in detail on the document terminating the contract or employment or the signed document, which shall from that time on be authentic and valid with respect to such fractions.

(3) (Amended by Law No. 5584 of June 26, 1970) If none of the bodies referred to in this article exists in the locality, the representative of the Public Minister or, where the office exists, the Public Defender shall render the necessary assistance, and if such body, local representative or counsel is not available or is unable to act, the justice of the peace shall give the necessary assistance.

(4) (Amended by Law No. 5584 of June 26, 1970) The payment to which the employee is entitled shall be made at the same time as the registration of termination of the contract of employment; in cash or by crossed cheque, as agreed between the parties, unless the employee is illiterate, in which case payment may only be made in cash.

(5) (Amended by Law No. 5584 of June 26, 1970) In the case of the payment referred to in the preceding paragraph the compensation shall in no case exceed the remuneration earned in 1 month by the employee.

(6) (Added by Law No. 7855 of Oct. 24, 1989) The payment of the installments recorded on the document of termination of the employment contract or the receipt of resignation must be made in the following time periods:

a) no later than the first working day after the termination of the contract; or

b) no later than the tenth day, calculated from the date of notification of dismissal, when due to lack of an advance notice, compensation must be made or exemption from payment is received.

(7) (Added by Law No. 7855 of Oct. 24, 1989) Assistance in contractual termination (subsections 1 and 2) shall be rendered at no charge to the employee or the employer,

(8) (Added by Law No. 7855 of Oct. 24, 1989) The non-observance of the provisions of subsection (6) of this article shall subject the liable party to a fine of 160 BTN, per employee, as well as to the payment of a fine to the employee, of an amount equivalent to his salary, duly corrected by the

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index of variation of the BTN, except in the case of verified decease of the employee.

Art. 478. The compensation for the cancellation of a contract for an unspecified period shall be equal to 1 month's for each year of actual service or for each year and any fraction of a year equal to or exceeding 6 months.

(1) The first year of a contract for an unspecified period shall be deemed to be a period on trial, and compensation shall not be payable until it has been completed.

(2) If the employee was paid by the day, the compensation shall be calculated on the basis of 30 days.

(3) If the employee was paid by the hour, the compensation shall be calculated on the basis of 220 hours a month.

(4) (Amended by Decree Law No. 229 of Feb. 28, 1967) In the case of employees working on commission or entitled to a percentage, the compensation shall be calculated on the basis of the average amount of the commission or percentage received during the last 12 months of employment.

(5) In the case of persons who are employed at piece rates or by the job, the compensation shall be calculated on the basis of the average time usually spent by the person concerned in the performance of his task, according to the work which would be done in 30 days.

Art. 479. In the case of contracts for which a time limit has been fixed, if the employer dismisses the employee without lawful cause, he shall be bound to pay to the employee, by way of compensation, a sum equal to half of the remuneration to which he would have been entitled on the expiration of the contract.

Sole Subsection. For the purpose of the application of the provisions of this article, the variable or uncertain part of the wages shall be calculated in the manner prescribed for the calculation of the compensation payable for the cancellation of a contract for a non-specific period.

Art. 480. If a time limit has been fixed for the contract, the employee shall not be entitled to terminate it without lawful cause, on pain of liability for compensation to the employer for the loss caused by his action.

(1) Nevertheless, the compensation shall not exceed the compensation to which the employee would be entitled in the same circumstances.

(2) Repealed by Law No. 6533 of May 24, 1978.

Art. 481. In the case of contracts for a specified period which contain a clause giving both parties the right to cancel the contract before the expiry of the agreed time limit, if

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one of the parties exercises the said right, the rules governing the cancellation of contracts for an unspecified period shall apply.

Art. 482. The following shall be deemed to be lawful causes for the cancellation of a contract of employment by the employer:

(a) dishonesty;

(b) misconduct or bad behavior;

(c) habitual engagement by the employee in commercial transactions on his own account or for another without his employer's permission, if this involves competition with the undertaking in which he is employed or is prejudicial to the performance of his work;

(d) a sentence passed upon the employee by a criminal court, without suspension of the carrying out of the penalty;

(e) idleness of the employee in the performance of his duties;

(f) habitual drunkenness or drunkenness while on duty;

(g) betrayal of a secret of the undertaking;

(h) breach of discipline or insubordination;

(i) desertion of post;

(j) any act detrimental to the honor or good repute of another which is committed during employment, or an assault under the same conditions, except in case of legitimate self defense or defense of another;

(k) any act detrimental to the honor or good repute of, or an assault against, the employer or a superior, except in case of legitimate self-defense or defense of another;

(l) habitual indulgence in games of chance.

Sole Subsection. (Added by Decree Law No. 3 of Jan. 27, 1966) The performance of acts against national security, duly verified by administrative inquiry, shall also be a lawful cause for dismissal of an employee.

Art. 483. The employee shall be entitled to consider his contract canceled and claim the compensation due in the following cases:

(a) if he is required to perform services which are beyond his powers or are prohibited by law, contrary to morality or not covered by the contract;

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(b) if he is treated with excessive severity by the employer or by his superiors;

(c) if he runs obvious risk of serious injury;

(d) if the employer fails to fulfill his contractual obligations;

(e) if the employer or a representative of the employer commits any act detrimental to the honor and good repute or the employee or a member of the employee's family;

(f) if the employer or a representative of the employer assaults the employee, except in case of legitimate self defense or defense of another;

(g) if the employer reduces the work of an employee who is paid at piece or task rates, in such a manner as to affect materially the amount of the wages earned.

(1) The employee shall be entitled to suspend work or cancel the contract if he has to perform any statutory duty which is incompatible with the continuation of the employment.

(2) In the case of decease of the employer in an individual enterprise, the employee is entitled to cancel the contract of employment.

(3) (Added by Law No. 4825 of Nov. 5, 1965) In the cases of letters d) and g), the employee may sue to cancel his employment contract and for the payment of the respective compensation, whether or not he remains in service until the final decision of the procedure.

Art. 484. If the employer and the employee are reciprocally responsible for the act determining the cancellation of the employment contract, the labor court shall reduce by one-half the compensation that would have been due if the liability had belonged entirely to the employer.

Art. 485. If the operations of the undertaking are terminated on account of the death of the employer, the employees shall be entitled to the compensation mentioned in article 477 or 497, according to the circumstances.

Art. 486. (Amended by Law No. 1530 of Dec. 26, 1951) In the event of temporary or permanent stoppage of work by reason of the act of a municipal, state or federal authority, or as a result of the promulgation of a law or decision rendering further activity impossible, the compensation for cancellation of contract without fault of the employee shall still be payable but in this case shall be defrayed by the government responsible .

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(1) (Amended by Decree Law No. 6110 of Dec. 16, 1943) If the employer invokes the precept of this article in his defense, the competent labor court shall notify the staff of the public authority designated as responsible for the stoppage of work in order that the authority might reply within a period of 30 days, upon the elapse of which a summons to the authority shall be deemed.

(2) (Amended by Law No. 1530 of Dec. 26, 1951) Where by means of a valid document the interested party invokes a defense based on the provisions of this article and indicates which judge is competent, the opposing party shall be summoned to state his views on the defense within three days.

(3) (Amended by Law No. 1530 of Dec. 26, 1951) When the authority having liability has been ascertained, the conciliation board or court shall declare itself to be without jurisdiction in the matter and shall pass the file to the Special Finance Judge, before whom the case shall continue in accordance with the rules for ordinary suits.

CHAPTER VI

NOTICE

Art. 487. If a time limit has not been fixed for the contract, a party who desires to cancel the contract without lawful cause shall be bound to give notice to the other party of its intention as follows:

I. (Amended by Law No. 1530 of Dec. 26, 1951) 8 days in advance, if wages are paid weekly or at shorter intervals;

II. (Amended by Law 1530 of Dec. 26, 1951) 30 days in advance, if wages are paid fortnightly or monthly or if the employee has over 12 months' service in the undertaking;

(1) If the employer fails to give due notice, the employee shall be entitled to his wages for the period of notice, and the said period shall always be deemed to be included in the period of employment.

(2) If the employee fails to give due notice, the employer shall be entitled to deduct the amount of the wages corresponding to the period of notice,

(3) In the case of wages paid at piece rates, the calculation for the purposes of the two preceding sub-paragraphs shall be based on the average of the wages for the last twelve months of employment.

(4) (Added by Law No. 7108 of July 5, 1983) Due notice must be given in the case of indirect dismissal.

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Art. 488. (Amended by Law No. 7093 of April 25, 1983.) If the contract is canceled by the employer, the normal hours of work of the employee shall be reduced by two hours a day during the period of notice, without any reduction in wages.

Sole Subsection. If the contract is canceled by the employer, the employee may opt to work the total working hours and be absent from work for a full working day, if his advance notice period is limited to eight days; or he may be absent from work for seven consecutive days if his advance notice period is 30 days.

Art. 489. After notice has been given, the cancellation of the contract shall take effect on the expiry of the term of notice to leave; nevertheless, if the party which gave notice reconsiders his decision before the expiry of the term of notice, the other party shall be entitled either to accept or to reject the withdrawal of the notice.

Sole Subsection. If the withdrawal is accepted, or if work continued to be performed after the expiry of the term of notice the contract shall continue in operation as if notice has not been given.

Art. 490. If the employer during the period of notice given to the employee commits any action which justifies immediate cancellation of the contract, he shall be bound to pay the wages for the period of notice, without prejudice to any compensation which may be due.

Art. 491. If the employee during the period of notice commits any action deemed by law to be a lawful ground for the cancellation of the contract, he shall forfeit his right to wages for the remainder of the period of notice.

CHAPTER VII

SECURITY OF TENURE

Art. 492. An employee who has been employed in the same undertaking for more than ten years shall not be dismissed except on account of a serious offense or force majeure duly established.

Sole Subsection. The whole of the time during which the employee has been at the disposal of the employer shall be deemed to be a period of employment.

Art. 493. The commission of any of the actions mentioned in article 482 shall be deemed to be a serious offense if the nature of the action or the repetition thereof constitutes a serious violation of the duties and obligations of the employee.

Art. 494. An employee who is accused of a serious offense may be suspended from his duties, but shall not be dismissed until an inquiry has been held respecting the justification for the accusation.

Sole Subsection. In cases covered by this article the suspension shall continue until the final decision in the case is given.

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Art. 495. If it is proved that the employee was not guilty of a serious offense, the employer shall be bound to reinstate him in the employment and to pay him the wages to which he would have been entitled during the period of suspension.

Art. 496. If the reinstatement of a permanent employee is inadvisable in view of the degree of incompatibility arising from the dispute, especially where the employer is an individual, the labor court may replace the obligation to reinstate the employee by the compensation due in conformity with the provisions of the next following article.

Art. 497. If an undertaking is wound up for reasons other than reasons of force majeure, any permanent employee who is dismissed shall be entitled to double the amount of the compensation due in the event of the cancellation of a contract concluded for an unspecified period.

Art. 498. In the event of the closing of an establishment, branch or agency, or of necessary restriction of business, for reasons other than reasons of force majeure, the permanent employees who were employed in the establishment, branch or agency concerned shall be entitled to compensation as provided in the last preceding article.

Art. 499. positions of direction or management or other positions of trust where the employee is in the immediate confidence of the employer shall not entail security of tenure, without prejudice nevertheless to the calculation of the period of service for all statutory purposes.

(1) If an employee who was guaranteed security of tenure ceases to hold a position of trust, he shall be guaranteed reinstatement in the post which he held previously, unless he was guilty of a serious offense.

(2) If an employee who has not held any position other than a position of trust, and who has been employed for more than ten years in the same undertaking, is dismissed without lawful cause, he shall be entitled to compensation proportionate to his length of service, in conformity with the provisions of articles 477 and 478.

(3) If an employee is dismissed in order to prevent his becoming entitled to security of tenure, the employer shall be bound to pay double the amount of the compensation prescribed by articles 477 and 478.

Art. 500. Resignation of a permanent employee shall be valid only if such employee is assisted by the competent trade union or, failing this, his resignation is tendered before the competent local representative of the Ministry of Labor and Social Welfare or the labor courts system.

CHAPTER VIII

FORCE MAJEURE

Art. 501. "Force Majeure" shall mean any unavoidable event, outside the control of the employer, to the occurrence of which he did not contribute, either directly or indirectly.

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(1) In the event of lack of foresight on the part of the employer, force majeure shall not be deemed to be present.

(2) The restrictions of this Act with reference to the provisions of this chapter shall not apply to a case of force majeure which does not, and is not likely to, affect substantially the economic and financial situation of the undertaking.

Art. 502. If the undertaking, or an establishment thereof in which the employee works, is wound up for reasons of force majeure, the employee shall be entitled on dismissal to the following compensation:

I. If he is a permanent employee, compensation in conformity with articles 477 and 478;

II. If he is not entitled to security of tenure, half of the compensation which would be due in the event of cancellation of the contract without lawful cause;

III. If his contract is for a specified time limit, the compensation provided for in article 479 of this Act, reduced likewise by one-half.

Art. 503. In case of force majeure or of duly proves loss, a general reduction of the wages of the employees of the undertaking shall be permitted, in proportion to the wages of each employee; nevertheless, the reduction shall not exceed twenty-five per cent., and the minimum wage applicable in the region shall be observed.

Sole Subsection. When the effects resulting from the reasons of force majeure cease to exist, the wages which were reduced shall raised to their previous amount.

Art. 504. If it is proved that reasons of force majeure were falsely alleged to exist, permanent employees shall be entitled to reinstatement and non-permanent employees to a supplement to the compensation already paid; both classes of employees shall be entitled to payment of the wages in arrears.

CHAPTER IX

SPECIAL PROVISIONS

Art. 505. The provisions of chapters I, II and VI of this Title shall apply to agricultural workers.

Art. 506. A contract of employment for agricultural work may contain a clause providing for the payment of wages in kind, provided that the payments in kind consist of products obtained by the working of the undertaking and do not exceed one-third of the total wage of the employee.

Art. 507. The provisions of chapter VII of this Title shall not apply to persons employed in consulting rooms or offices of persons engaged in liberal professions.

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Sole Subsection. Repealed by Law No. 6533 of May 24, 1978.

Art. 508. In the case of a bank employee, persistent failure to pay debts which are lawfully due shall be deemed to be a lawful cause for the cancellation of the contract of employment.

Art. 509. Repealed by Law No. 6533 of May 24, 1978.

Art. 510. (Amended by Law No. 5562 of Dec. 12, 1968 and Law No. 7855 of Oct. 24, 1989) An undertaking violating the prohibitions of this Title shall be liable to a fine equal to 30 regional reference values, which shall be doubled in the event of a repetition of the offense, without prejudice to any other penalty prescribed by law.

TITLE V

ORGANIZATION IN INDUSTRIAL ASSOCIATIONS

CHAPTER I

INDUSTRIAL ASSOCIATIONS

Division I

Constitution of Associations

Art. 511. All persons who are engaged in the same activity or occupation or in similar or allied activities or occupations as employers, employees, or agents or other persons working on their own account, or as members or a liberal profession, shall be entitled to form associations for the purpose of the study, protection and coordination of their economic or occupational interests.

(1) The solidarity of economic interests of persons engaged in the same or in similar or allied occupations shall constitute the basic social bond, entitled "economic category".

(2) The similarity of conditions of life arising from a common occupation or employment, carried on in the same economic activity or in similar or allied economic activities, shall constitute the elementary social conception of the "occupational category".

(3) Employees engaged in occupations or in the performance of duties which are differentiated by special rules governing the occupation in question, or in consequence of special living conditions, shall be deemed to be engaged in a differentiated occupational category.

(4) The extent to which occupations are the same, similar or allied shall determine the degree to which their economic or occupational category may be deemed to be of the same nature and the association thereof natural.

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Art. 512. An industrial association shall not be approved and shall not have the rights conferred by this Act unless it is constituted for the purposes and in the form specified in the last preceding article and registered in accordance with article 558.

Art. 513. Industrial associations shall be entitled:

(a) to represent before the administrative and judicial authorities the general interests of the category or liberal profession in question or the individual interests of their members in connection with the activity or occupation carried on by them;

(b) to enter into collective contracts of employment;

(c) to elect or appoint representatives of the category or liberal profession in question;

(d) to co-operate with the State as technical and advisory bodies in the investigation and solution of problems relating to the category or liberal profession in question;

(e) to impose contributions on all persons engaged in the economic or occupational categories or in the liberal professions represented.

Sole Subsection. Industrial associations of employees shall in addition be entitled to set up and maintain employment exchanges.

514. The duties of industrial associations shall be as follows:

(a) to co-operate with the public authorities in the furtherance of social solidarity;

(b) to maintain legal aid services for their members;

(c) to promote conciliation in labor disputes.

(d) (Added by Law No. 6200 of Apr. 16, 1975) provided that it is possible and in accordance with their possibilities, to maintain a social assistant with the specific duties of promoting operational cooperation in the enterprise and professional integration into a Class, on their Team of Personnel, in agreement with assistance entities or on their own behalf.

Sole Subsection. Industrial associations of employees shall in addition be bound:

(a) to promote the establishment of distributive and credit

(b) to set up and maintain elementary and vocational schools.

Division II

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Approval of Industrial Associations

Art. 515. An industrial association shall not be approved unless it satisfies the following conditions:

(a) it shall comprise not less than one-third of the legally constituted undertakings, whether individually owned undertakings or companies, in the case of an employers' association, or one-third of the number of persons constituting the category or engaged in the liberal profession in question in the case of an association of salaried or wage-earning employees, agents or other persons working on their own account or persons engaged in a liberal profession;

(b) the term of office of the executive officers shall not exceed three years;

(c) the chairman shall be a Brazilian by birth and the other executive and representative officers shall be Brazilian citizens.

Sole Subsection. By way of exception, the Minister of Labor, Industry and Commerce may approve an industrial association the number of members of which is less than the third prescribed under (a) above.

Art. 516. Not more than one industrial association shall be approved as representative of each economic or occupational category or each liberal profession in any given area.

Art. 517. Industrial associations may be district, municipal, intermunicipal, State or interstate. By way of exception, in view of conditions which are peculiar to certain categories or professions, the Minister or Labor, Industry and Commerce may authorize the recognition of national associations.

(1) The Minister of Labor, Industry and Commerce shall fix the area for the industrial association.

(2) Within the area thus fixed an industrial association may set up branch offices or sections for the better protection of its members and of the economic or occupational category or liberal profession represented by it.

Art. 518. The application for approval shall be submitted to the Minister of Labor, Industry and Commerce and shall be accompanied by an original or certified true copy of the rules of the association.

(1) The rules shall contain the following particulars:

(a) the style and address of the association;

(b) the economic or occupational category or the liberal profession which is to be represented;

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(c) a statement that the association will act as a body for cooperation with the public authorities and other associations for the furtherance of social solidarity and the subordination of economic and occupational interests to the national interests;

(d) the powers and duties of the executive officers, the method of electing them and the rules for voting, and the grounds on which they may be removed from office or replaced;

(e) the method of accumulating and managing the property of the association and the purpose for which such property is to be used if the association is wound Up;

(f) the conditions for the winding up of the association.

(2) The procedure for the approval of an association shall be governed by instructions issued by the Minister or Labor, Industry and Commerce.

Art. 519. Approval shall be granted to the industrial association which in the opinion of the Minister of Labor, Industry and Commerce is the most representative; this opinion shall be based on the following grounds, inter alia:

(a) the number of members;

(b) the social services set up and maintained;

(c) the value of the property of the association.

Art. 520. When an industrial association has been approved, a charter of approval signed by the Minister of Labor, Industry and Commerce shall be delivered to it; this charter shall specify the economic or occupational category to be represented by the association and the area assigned to it.

Sole Subsection. Approval shall confer upon the association the rights mentioned in article 513 and shall entail the duties specified in article 514, subject to imposition of the penalties prescribed by this Act in the event of failure to perform these duties.

Art. 521. The operations of an industrial association shall be subject to the following conditions:

(a) it shall be prohibited from engaging in any propaganda in favor of doctrines incompatible with the institutions and interests of the Nation or in favor of candidates for elective offices not connected with the association;

(b) an elective office shall not be held simultaneously with an employment for remuneration paid by the industrial association or an industrial organization of higher rank;

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(c) the elective offices shall be honorary.

(d) it shall be prohibited from undertaking any activities not connected with the objects mentioned in article 511, including any activity partaking of the nature of party politics;

(e) it shall be prohibited from transferring its offices with or without valuable consideration to anybody having the character of a political party.

Sole Subsection. If a member of an industrial association of employees, persons working on their account or persons engaged in a liberal profession is compelled to give up his work in order to perform the duties of his office, the general meeting may decide to pay him an allowance, which shall not exceed the amount of his earnings in the occupation in question.

Division III

Management of Industrial Associations

Art. 522. The management of an industrial association shall be carried on by a managing committee composed of not more than seven nor less than three members and by a supervising committee composed of three members; these bodies shall be elected by the general meeting.

(1) The managing committee shall elect the president of the association from amongst its members.

(2) The powers and duties of the supervising committee shall be limited to supervising the financial management of the industrial association.

(3) The managing committee of an association and the representatives referred to in article 523 shall have sole power to represent and defend the interests of the association before the public authorities and before undertakings; the said power may be exercised by an agent with power of attorney granted by the managing committee or by a member charged with the representation provided for by law.

Art. 523. The representatives of the association who are to be responsible for the management of the branch offices or sections set up in the manner prescribed in subsection (2) of article 517 shall be appointed by the managing committee from amongst the members of the association resident in the area of jurisdiction of the branch concerned.

Art. 524. Decisions of the general meeting respecting the following matters shall be taken by secret ballot in the manner prescribed in the rules:

(a) elections of members to represent the category concerned as provided for by law;

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(b) auditing and approval of the accounts of the managing committee;

(c) utilization of the assets of the association;

(d) resolutions respecting decisions of the managing committee imposing a penalty on a member of the association;

(e) decisions respecting employment relations or labor disputes. In such cases the decisions of the general assembly shall not be deemed to be valid unless the assembly has been specially convened for this purpose in accordance With the rules of the industrial association. At the general meeting one-half plus one of the paid-up members shall constitute a quorum; if there is not a quorum at the meeting first convened a second meeting shall be convened at which the number of those present shall constitute a quorum and all decisions obtaining two-thirds of the votes shall be deemed to be approved.

(1) Elections to executive offices in the managing committee and supervising committee shall be a secret ballot held for a period of not less than six consecutive hours at the head office of the association, the offices of its representatives and local branches, and in the principal places of employment, where such polling stations shall be opened as are appointed by the Director of the National Labor Department for the Federal District and by the regional labor officers for the States and Federal Territories.

(2) On the expiration of the period fixed for the ballot, the returning board shall meet in public and continuous session at the head office of the association; and the ballot boxes, together with the electoral records, shall forthwith be delivered to them by the presiding officers of the polling stations. An additional returning board may be appointed if required owing to special circumstances or for practical reasons.

(3) A member of the Public Labor Ministry or a person of known ability appointed by the Principal Law Officer or by the regional law officer shall preside over the returning board.

(4) The vote shall not be valid unless more than two-thirds of the members with voting rights take part. If there is not a quorum a new election shall take place within 15 days, which shall be valid if more than 50 per cent. of the said members take part. If the number of members taking part in the second vote is less than the-required number a third and final vote shall take place, which shall not be valid unless more than 40 per cent. of the said members vote. In each case the presiding officer of the returning board shall declare the names of the

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persons elected, who shall enter upon their functions automatically on the date on which the term of office of the outgoing committee expires; protests or appeals lodged in conformity with the law shall not effect a stay.

(5) If the statutory percentage of votes for an election is not obtained, the Minister of Labor, Industry and Commerce shall declare the executive offices of the association to be vacant as from the expiration of the current term of the officers thereof, and shall appoint an officer to administer the association. New elections shall be held within a period of six months.

Art. 525. No natural or juridical person not connected with an association shall be permitted to interfere in any way with the management or services of the association.

Sole Subsection. This prohibition shall not apply to the following persons:

(a) delegates of the Ministry of Labor, Industry and Commerce specially appointed by the Minister or his representative;

(b) persons who as employees hold offices in the association in virtue of an authorization of the general meeting.

Art. 526. The employees of the association shall be appointed by the managing committee, subject to approval of the general meeting; a person who does not fulfill the conditions laid down in article 530, clauses (2) and (4) to (8) inclusive-- or, if the candidate formerly held executive office, clause (1) of the said article-- shall not be so appointed.

Art. 527. A register authenticated by the competent official of the Ministry of Labor, Industry and Commerce shall be kept at the office of the industrial association and shall contain the following particulars:

(a) in the case of an employers' industrial association, the names of the firms (individually owned or partnerships), or names of the undertakings and their head offices, and the name, age, civil condition, nationality and place of residence of the individual members or of the directors in the case of a joint stock company, and the same particulars respecting any partner or director who represents the undertaking in the association;

(b) in the case of an industrial association of employees, agents or other persons working on their own account or persons engaged in a liberal profession, in addition to the name, age, civil condition, nationality, occupation or functions, and place of residence of each member, the establishment or place where he carries on his occupation or works, the number and series of his work book and his registration number in the provident institution of which he is a member.

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Art. 528. In the event of a dispute or any occurrence which disturbs the operation of an industrial association, the Ministry of Labor, Industry and Commerce shall have power to intervene through a representative with powers to manage the association and carry out or recommend the measures necessary for the restoration of normal conditions of operation.

Division IV

Elections

Art. 529. A member shall not be entitled to vote or to hold any executive or representative office whether in the economic or occupational sphere unless--

(a) he has been a registered member of the industrial association for more than six months and has been engaged in the activity or occupation in question for more than two years;

(b) he is over the age of eighteen years;

(c) he is in full possession of his rights as a member of the association.

Sole Subsection. All members shall be obliged to vote in the elections held by an industrial association.

Art. 530. (Amended by Decree Law No. 229 of Feb. 28, 1967) The following persons shall not be elected to executive or representative office in the economic or occupational sphere, nor shall they be permitted to retain such office:

I. (Amended by Decree Law No. 229 of Feb. 28, 1967) persons who have held executive office and whose accounts have not been finally approved;

II. (Amended by Decree Law No. 229 of Feb. 28, 1967) persons through whom an industrial association has suffered financial loss;

III. (Amended by Decree Law No. 229 of Feb. 28, 1967) Persons who have not been actively engaged in, or have not acted as economic or occupational representatives of, the activity or occupation in question within the area of the industrial association concerned for at least the last two years;

IV. (Amended by Decree Law No. 229 of Feb. 28, 1967) persons who have been convicted of a willful crime, for such time as they are under sentence;

V. (Amended by Decree Law No. 229 of Feb. 28, 1967) persons who are not in possession of their political rights;

VI. Repealed by Law No. 8865 of Mar. 29, 1994.

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VII. (Added by Decree Law No. 507 of Mar. 18, 1969) persons found guilty of reprehensible conduct, duly proven;

VIII. Repealed by Law No. 8865 of Mar. 29, 1994.

Art. 531. In the election of members of the managing committee and the supervising committee, a candidate who obtains an absolute majority of the votes, calculated on the basis of the total number of members who are voters, shall be deemed to be elected.

(1) If an absolute majority of the voters fails to attend at the first summons, or if none of the candidates obtains an absolute majority, a fresh summons shall be issued for the following day; the candidates who obtain a majority of the votes of the persons then present shall be deemed to be elected.

(2) If there is only one list of candidates registered for the election, the second meeting may be held two hours after the first, provided that this is mentioned in the election notices.

(3) (Amended by Decree Law No. 8080 of Oct. 11, 1945) If there is more than one list of candidates, the Minister of Labor may appoint the chairman of the electoral meeting, if the members who drew up the respective lists so request.

Art. 532. The elections for the renewal of the managing committee and the supervising committee must be held within a time limit of not more than sixty days nor less than thirty days before the expiry of the term of office of the members of the said committees.

(1) In default of an objection entered in the minutes of the electoral meeting, or any appeal made by any of the candidates, within fifteen days reckoned from the date of the elections, the managing committee which has been elected shall take office without the necessity of approval by the Ministry of Labor, Industry and Commerce.

(2) If an appeal has not been lodged, the managing committee in office shall be bound to publish the results of the proceedings, within thirty days of the holding of the elections; it shall communicate to the local administrative body of the Ministry of Labor, Industry and Commerce a list of the persons elected with personal particulars respecting each of them and the duties which he is to perform.

(3) If an objection is entered in the minutes of the electoral meeting or an appeal lodged within fifteen days of the holding of the elections, it shall be the duty of the managing committee in office to transmit the file of the electoral proceedings, with all necessary documents, to the local administrative body of the Ministry of Labor, industry and Commerce, which shall refer it to the Minister for his decision. In this case, the

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managing committee and the supervising committee in office shall remain in office until the definitive settlement of the case.

(4) If the circumstances mentioned in the last preceding article do not occur, the new managing committee shall take up its duties within thirty days of the expiry of the term of office of the retiring committee.

(5) On taking office an elected candidate shall give a solemn oath in writing to respect the Constitution, the laws in force and the rules of the association in the performance of his duties.

Division V

Industrial Organizations of Higher Rank

Art. 533. Federations and confederations organized in accordance with the provisions of this Act shall be deemed to constitute industrial organizations of higher rank.

Art. 534. Not less than five industrial associations which represent the absolute majority of a group of identical, similar or allied activities or occupations may form a federation.

(1) If a federation is already in existence within the group of activities or occupations for which the new body is to be set up, the establishment of the latter shall not reduce the number of industrial associations continuing to be affiliated to the former to less than five.

(2) The federations shall be State federations; nevertheless, the Minister of Labor, Industry and Commerce may authorize the constitution of interstate or national federations.

(3) A federation may combine the industrial associations of a particular municipality or connected region with a view to coordinating the interests of the said associations, nevertheless, such a federation shall not be entitled to represent the activities or occupations thus combined.

Art. 535. A confederation shall be composed of not less than three federations and shall have its head office in the capital of the Republic,

(1) The confederations composed of federations of industrial associations of employers shall be entitled respectively the National Confederation of Industry, the National Confederation of Commerce, the National Confederation of Maritime, River and Air Transport, the National Confederation of Land Transport, the National Confederation of Communications and Publicity, the National Confederation of Credit Establishments, and the National Confederation of Education and Culture.

(2) The confederations composed of federations of industrial associations of employees shall be entitled respectively the National Confederation of Industrial Employees, the National Confederation of Employees in

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Commerce, the National Confederation of Employees of Maritime, River and Air Transport Undertakings, the National Confederation of Employees of Land Transport Undertakings, the National Confederation of Employees in Undertakings' for Communications and Publicity, the National Confederation of Employees in Credit Establishments and the National Confederation of Employees in Establishments for Education and Culture.

(3) The confederation formed by the federations of persons engaged in liberal professions shall be entitled the National Confederation of the Liberal Professions.

(4) The industrial organization of higher rank for agriculture and stock-raising shall be organized in accordance With the provisions of the law regulating the constitution of industrial associations for these activities or occupations.

Art. 536. Repealed by L.D, # 229 of Feb. 28, 1967.

Art. 537. The application for the approval of a federation shall be addressed to the Minister of Labor, Industry and Commerce and shall be accompanied by a copy of the rules and authenticated copies of the minutes of the meeting of each industrial association or federation authorizing the affiliation.

(1) The organization or the federations and confederations shall conform to the requirements laid down under (b) and (c) of article 515.

(2) The charter of approval of a federation shall be issued by the Minister of Labor, Industry and Commerce and shall specify the duties of economic or occupational co-ordination and also the territorial jurisdiction assigned to the federation.

(3) The approval of a confederation shall be conferred by a Decree of the President of the Republic.

Art. 538. Federations and confederations shall be administered by the following bodies: '

(a) the managing committee;

(b) the board of representatives;

(c) the supervising committee.

(1) The board of representatives shall be composed of not less than three members and the financial board shall be composed of three members; these shall be elected by the board of representatives for a period of three years.

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(2) Only members of the groups belonging to the federations or confederations (as the case may be) shall be eligible for election.

(3) The managing committee shall choose from amongst its members the president of the federation or confederation.

(4) The board of representatives shall be composed of delegations from the affiliated federations or trade unions. Each delegation shall consist of two members who shall hold office for a period of three years. Each delegation shall have one vote.

(5) The sole function of the supervising committee shall be to supervise the financial management of the organization.

Art. 539. The provisions of divisions II and III of this chapter shall apply to the constitution and management of federations, in so far as they are applicable.

Division VI

Rights of Persons Engaged in Activities or Occupations and of Members of Industrial Associations

Art. 540. Every undertaking or individual engaged in any activity or occupation shall be entitled to admission to the industrial association for the category concerned, provided that the conditions laid down in this Act are satisfied, except in case of disqualification duly proved, subject to right of appeal to the Minister of Labor, Industry and Commerce.

(1) If a member of an industrial association ceases for any reason to engage in the activity or occupation concerned, he shall forfeit his rights as a member.

(2) If a member of an industrial association of employees, agents or other persons working on their own account or persons engaged in liberal professions receives a retirement pension , is unemployed or has no work, or is called up for military service, he shall not forfeit his rights as a member and shall be exempted from payment of contributions of any kind; nevertheless, he shall not be entitled to hold an executive office or an economic or occupational representative office in the association.

Art. 541. Persons who are engaged in a specified activity or occupation in a locality where an industrial association for the category in question or for a similar or allied activity or occupation does not exist shall be entitled to become members of an industrial association for the same or a similar or allied occupation in the nearest locality.

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Sole Subsection. The provisions of this article shall apply to industrial associations in relation to their respective federations, in conformity with the schedule of activities and occupations referred to in article 577.

Art. 542. Every person engaged in an activity or occupation shall be entitled to appeal within a time limit of 30 days to the competent authority of the Ministry of Labor, Industry and Commerce against any measure prejudicial to his rights or contrary to this Act which is issued by the managing committee, the supervising committee or the general meeting of the industrial association concerned.

Art. 543. (Amended by Law No. 7543 of October 2, 1986) An employee who is elected to executive or representative office in an industrial association, including membership of a board or authority for collective bargaining shall not be prevented from carrying out his duties or transferred to any place or type of work that makes it difficult or impossible for him to perform such duties.

(1) An employee shall be removed from office if he applies for, or voluntarily accepts, a transfer.

(2) Any period for which an employee absents himself from work for the performance of the duties mentioned in this article shall be treated as unpaid leave, unless the undertaking gives permission or the case is covered by a clause in the contract.

(3) It shall not be lawful to dismiss a unionized employee or one who is associated with a union from the moment his application for election to executive or representative office in a union or occupational association is recorded, until l year shall have elapsed since the expiration of his term of office (if elected), even as a substitute, unless he is guilty of a serious fault that has been duly proved in accordance with this Consolidation.

(4) The expression "executive or representative office" means an office which a person holds or is assigned to by virtue of his election in accordance with the law.

(5) For the purposes of this article an industrial association shall notify the undertaking in writing, within 24 hours, of the date on which and the time at which any of its employees has been registered as a candidate for election and, within the same time limit, of his election and assumption of office; it shall furthermore supply the undertaking with documentary evidence to that effect. The Ministry of Labor and Social Welfare shall give similar notice within the same time limit of any designation made in terms of the last sentence of subsection 4.

(6) Where an undertaking endeavors in any manner to prevent an employee from joining or forming an industrial association or form exercising his rights as a member of such an association, it shall be liable to the penalty

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laid down in clause (a) of article 553, without prejudice to any compensation to which the employee may be entitled.

Art. 544. The right to join an industrial association shall be optional, but a unionized employee shall, all other things being equal, have preference in connection with:

I. His admission to employment in an undertaking operating any public service or performing work under any contract with the public authorities;

II. His admission to any employment of a public or equivalent nature if large numbers of workers have been laid off on account of the closure of any undertaking;

III. The allocation of a private house under the National Housing Plan or through any public institution;

IV. the allocation of a plot of land in a town or country area if land is being divided up by the Government or by any service directly or indirectly administered by the Government or by any semi-public company;

V. The rent or purchase of real estate owned by a public corporation or semi-public company, if he is evicted as a result of judicial proceedings;

VI. The grant of loans from any agency financed by or connected with the Government;

VII. The purchase of a car or other vehicle or any tools of his trade, if the money is provided by an independent institution, semi-public company or agency financed by the Government;

VIII. Repealed by Law No. 8630 of Feb. 25, 1993.

IX. (Amended by Decree Law No. 229 of Feb. 28, 1967) the grant of a scholarship for himself or his children, as provided in the special legislation on the subject.

Art. 545. The employer shall be bound to deduct in the paysheets of his employees, duly authorized by the law, the contributions payable by them to their industrial association, on condition that he has been duly notified thereof; this shall not apply to the industrial association tax, the deduction of which shall not require the said formality.

Sole Subsection. The amount deducted shall be paid to the industrial association within the next ten days, after which moratory interest of 10 per cent. shall be payable, without prejudice to the fine referred to in article 553 and the appropriate penalties for misappropriation.

Art. 546. Undertakings which are affiliated to an industrial association shall be given the preference, other conditions being equal, in adjudications by tender for the operation of

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public services and for supplies to Federal, State or municipal departments or to semiofficial public bodies.

Art. 547. Membership of an industrial association shall be requisite for all duties involving representation of an economic or occupational category on any official body for collective discussion, and for the right to any tax rebates or exemptions, except in the case or occupations not carried on for gain.

Sole Subsection. Before undertaking the duties referred to in this article or obtaining the privileges specified, the person concerned shall be bound to furnish evidence of membership of an industrial association or of the fact that there is no industrial association in the locality where he carries on his activity or occupation; evidence of the non-existence of an industrial association shall be given by means of a certificate issued in the Federal District by the National Labor Department or in the States or Acre Territory by the regional authority of the Ministry of Labor, Industry and Commerce.

Division VII

Financial Management of Industrial Associations and Supervision Thereof

Art. 548. The assets of an industrial association shall be derived from the following sources:

(a) the contributions payable to the industrial association by persons belonging to the economic or occupational category or to the liberal profession represented by the association, under the heading of industrial association tax, the said contributions to be paid and levied in the manner prescribed in Chapter III of this Title.

(b) the contributions of the members, in the manner prescribed by the rules or by the general meeting;

(c) the property and securities acquired and income derived therefrom;

(d) donations and legacies;

(e) files and other miscellaneous receipts.

Art. 549. The income of the industrial association, federations and confederations may be applied in the manner provided in the respective annual budgets, in accordance with the provisions established in the Law and in their by-laws.

(1) In order to sell, lease or acquire real property, industrial organizations shall be obligated to have a prior valuation made by the Federal Savings Bank or by the National Housing Bank, or by any other organization legally enabled to do so.

(2) Real property owned by industrial organizations shall not be alienated or sold without prior authorization of the respective general assemblies,

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meeting together with the presence of an absolute majority of the partners or associates who have a right to vote or of the Board of Representatives with an absolute majority of their members.

(3) If the quorum established in the preceding paragraph is not obtained, the matter may be decided in a new general meeting, made up of any number of associates with a right to vote, after 10 days have passed since the first convocation.

(4) In the cases provided in Nos. (2) and (3), the decision shall only be valid if adopted by a minimum of 2/3 (two-thirds) of the parties present, in secret ballot.

(5) Any decision of the general assembly concerning the alienation of real property shall be subject to voluntary appeal, within 15 days, to the Minister of Labor, with suspensive effect.

(6) The sale of real estate shall be effected by the director of the entity, after the decision or the General Assembly or of the Council of Representatives, by means of public bidding, and the notice of such bidding must be published in the "Diario Oficial" of the Union and in a daily newspaper, at least 30 days before such bidding shall be carried on.

(7) The resources intended for the total or partial payment or real estate acquired shall be obligatorily consigned in the annual budgets of the industrial associations concerned.

Art. 550. The budgets of industrial associations shall be approved, in secret ballot, by the respective General Assemblies or Councils of Representatives up to 30 days before the beginning of the financial year to which they refer, and the income and expenses shall be calculated in accordance with the instructions and models issued by the Minister of Labor.

(1) The budgets, after receiving the approval provided in the present article, shall be published, in resume form, within the period of 30 days as from the date of meeting of the General Assembly or that of the Council of Representatives, which approved them, observing the following:

(a) the budgets of the confederations, federations and industrial associations which are nationally based or which are interstate shall be published in the Diario Oficial of the Union--Section I--Part II;

(b) the budgets or the state federations and municipal, inter-municipal and state industrial associations shall be published in the official State or Territory newspaper of journal or wide local circulation.

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(2) Budgetary allotments which are insufficient for meeting expenses or which are not included in the current budgets, may be adjusted to the cost flow by means of opening additional credits requested by the Board of Directors to the respective General Assemblies or Councils or Representatives, whose concessionary acts shall be published up to the last day of the corresponding fiscal year, in accordance with the system provided in the preceding paragraph.

(3) The additional credits shall be classified as follows:

a. Supplementary--those intended to reinforce allocations already allotted in the budget; and

(b) Special--those intended to include allotments in the budget, for the purpose of meeting expenses for which a specific credit has not been consigned.

(4) The opening of additional credits shall be dependent upon the existence of income to compensate for the, for which purpose the following shall not be compromised:

(a) the financial surplus entered on the balance sheet of the preceding fiscal year;

(b) the excess of collection, thus understood as the positive balance of the difference between the revenue provided and the revenue actually realized, taking into account, also, the tendency of the fiscal year; and

(c) the total or partial annulment of allocations in the budget or additional credits opened in the fiscal year.

(5) For purposes of industrial association budgets and accounting, the financial fiscal year shall coincide with the calendar year, to which shall belong all expenses paid out and all receipts collected.

Art. 551. All financial and patrimonial transactions shall be evidenced by the accounting records of the industrial associations, executed under the responsibility of a legally licensed accountant, in accordance with good accounting practice and with the instructions rendered by the Minster of Labor.

(1) The accounting document to which this article refers shall be based on documents of receipts and expenses which shall be kept in the files of the accounting service or department, at the disposal of the organs responsible for administration and for financial control of the entity itself, or of the control which may be exercised by the organs or the Union through specific legislation.

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(2) The vouchers for the receipts and expenses to which the preceding paragraph refers, may be incinerated after 5 years have passed from the date on which the competent organ completed its accounting of them.

(3) The use of a bound journal, with pages in sequence and typographically numbered is obligatory for keeping books by the method of double-entry bookkeeping, whether directly or by reproduction, of the acts or transactions which modify or may modify the patrimonial situation of the entity, the terms of opening and closing being entered, respectively, in the first and last pages.

(4) An industrial association which uses a mechanical or electronic system for its accounting documentation, may substitute fiches or continuous forms for the Journal or facultative or auxiliary books; the entries, however, must satisfy all the requisites and norms of bookkeeping demanded in relation to mercantile books, including the terms of opening and closing, sequential numbering and typography.

(5) In the case of keeping books by the processes of fiches or of continuous forms, the entity shall adopt its own book for inscription of the patrimonial balance and for the demonstration of the results of the fiscal year, which shall fulfill the same requirements demanded for regular bookkeeping.

(6) The books and fiches or continuous forms shall be obligatorily submitted for registration and authorization to the Regional Labor Delegations located in the territorial base of the entity.

(7) Industrial associations shall maintain a specific register of assets of any nature which they own, in books or fiches, which shall fulfill the same formalities demanded for the Journal including those referring to the registration and authentication by the local Regional Labor Delegation.

(8) The accounts of the administrators of the industrial associations shall be approved, in secret ballot by the respective General Assemblies or Councils of Representatives, with prior advice of the Fiscal Council, for which purpose the Minister of Labor may establish time periods and procedures for their elaboration and intention.

Art. 552. Acts amounting to embezzlement or misappropriation of the moneys or property of an industrial association shall be deemed to amount to the crime of defalcation and shall be tried, and punished in conformity with the penal legislation.

Division VIII

Penalties

Art. 553. Contraventions of the provisions of this chapter shall be punished in proportion to the nature and gravity of the offense as follows:

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(a) (Amended by Law No. 6205 of Apr. 29, 1975) by a fine of not less than 2 nor more than 100 regional reference values, which shall be doubled in the event of a repetition of the offense;

(b) by the suspension of the members of the managing committee for a period not exceeding thirty days;

(c) by the removal from office of the members or directors of the managing committee;

(d) by the suspension of the industrial association, federation, or confederation for a period which shall not in any case exceed six months;

(e) by the withdrawal of the charter of approval;

(f) (Added by Decree Law No. 229 of Feb. 28, 1967) by the imposition of a fine equal to one-third of the regional minimum wage on any member failing without a valid reason to comply with the provisions of the sole subsection of article 529.

(1) (Added by Decree Law No. 925 of Oct. 10, 1969) The imposition of a penalty on the executive officers shall not preclude the application of the penalties laid down in this article for the association.

(2) (Added by Decree Law No. 925 of Oct. 10, 1969) The Minister of Labor may order preventive suspension from office or association representation of executive officers, basing his decision on a formal report made constituting conclusive or prima facie evidence of the facts reported and of the authority accused.

Art. 554. If the administrative bodies are removed from office in accordance with sub-paragraph (c) of the last preceding article, the Minister of Labor, Industry and Commerce shall appoint a delegate to manage the association and convene a general meeting (of which he shall be chairman), within a time limit of ninety days, for the election of new members or the managing committee and the supervising committee.

Art. 555. The charter of approval shall be withdrawn from an industrial association in the following cases:

(a) if it no longer satisfies the conditions for its constitution and operation laid down in this Act;

(b) if it fails to carry out an order of the President of the Republic made in virtue of the powers conferred upon him

(c) if it prevents the carrying out of economic policy adopted by the Government.

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Art. 556. The withdrawal of the charter of approval of an industrial association shall not entail the cancellation of its registration nor consequently its dissolution, which shall be effected in accordance with the provisions of the Act regulating the winding up of civil associations.

Sole Subsection. In the event of the winding up of an association on account of a contravention of the laws defining crimes against the international status, the constitution and safety of the State or the political and social system, the property of such association, after payment or the debts arising out of its liabilities, shall accrue to the Union and shall be utilized for social welfare purposes.

Art. 557. The penalties mentioned in article 553 shall be imposed as follows:

(a) those mentioned in sub-paragraphs (a) and (b), by the Director-General of the National Labor Department, subject to appeal to the Minister of State;

(b) other penalties, by the Minister or State.

(1) In the case of associations of higher rank, the penalties shall be imposed by the Minister of State, except in the case of the withdrawal of the charter of approval of a confederation, in which case the penalty shall be imposed by the President of the Republic.

(2) A penalty shall not be imposed in any case unless the accused is given an opportunity for entering a defense.

Division IX

General Provisions

Art. 558. Registration shall be compulsory for all industrial associations constituted for identical, similar or allied activities or occupations, in accordance with article 511 and in conformity with the schedule of activities and occupations mentioned in chapter II of this Title. industrial associations registered in conformity with this article shall have the right to represent, before administrative or judicial authorities, the individual interests of members in relation to their respective activities or occupations, and shall be entitled to the prerogatives specified in sub-paragraph (d) and in the sole subsection of article 513.

(1) The registration referred to in this article shall be effected by the regional branch offices of the Ministry of Labor and Social Welfare or by other agencies authorized for the purpose by law.

(2) An industrial association shall be registered in pursuance of an application made by it, accompanied by a certified copy or its rules and a statement of the number of members, the assets of the association and the social services organized by it.

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(3) Amendments of the rules of an industrial association shall not come into operation until they have been approved by the authority which granted registration.

Art. 559. By way of exception and in pursuance of a recommendation made by the Minister of Labor, Industry and Commerce for reasons of public policy, the President of the Republic may by Decree grant the prerogative specified in sub-paragraph (d) of article 513 of this chapter to civil associations constituted for the defense and coordination of economic and occupational interests which are not liable to registration as provided in the last preceding article.

Art. 560. The amalgamation of the property of an occupational association with that of an approved industrial association, or of the property of one approved industrial association with that of another, shall not be deemed to be a transference of property for the purpose of taxation.

Art. 561. The expression "industrial association" (sindicato) shall mean exclusively an occupational association of lower rank approved as provided in this Act.

Art. 562. The expressions "Federation" and "confederation" followed by the designation of an economic or occupational activity shall be used exclusively by industrial organizations of higher rank.

Art. 563. Repealed by L.D. #925 of Oct. 10, 1969.

Art. 564. In as much as it is the special and essential duty of industrial organizations to represent and co-ordinate the respective categories or occupations, it shall not be lawful for any such organization to engage in any activity for purposes of gain, whether directly or indirectly.

Art. 565. Industrial associations which have been approved in conformity with this Act shall not become affiliated to international organizations or maintain relations with such organizations without prior authorization, to be granted by decree of the President of the Republic.

Art. 566. Employees of the State and employees or semi-official institutions shall not form industrial associations.

Sole Subsection. (Amended by Law No. 7449 of Dec. 20, 1985) Employees of mixed economy companies, the Federal Economic Fund and of foundations created or maintained by the Public Power of the Union, the States or the Municipalities shall be excluded from the prohibition set forth in this article.

Arts. 567-569. Repealed by L.D. #229 of Feb. 28, 1967.

CHAPTER II

INDUSTRIAL ASSOCIATION MEMBERSHIP

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Art. 570. Industrial associations shall as a rule be constituted for specific economic or occupational categories, in conformity with the classification given in the schedule of activities and occupations mentioned in article 577 or according to the sub-divisions which may be created by the Minister of Labor, Industry and Commerce, on the recommendation of the Industrial Association Membership Board (Comissao do Enquadramento Sindical) mentioned in article 576.

Sole Subsection. If persons engaged in any activity or occupation are unable to organize an effective industrial association on the basis of the category specification, either because they are too few in number, or on account of the nature of the activity or occupation concerned, or because of the affinities existing between them, they shall be permitted to organize an association together with similar or allied categories, which shall be deemed to mean categories belonging to the same group in the schedule of activities and occupations.

Art. 571. Any one of the activities or occupations combined in the manner specified in the sole subsection of the preceding article may separate from the principal industrial association and form a separate association, if, in the opinion of the Industrial Association Membership Board, the new association appears to be in a position to have a normal corporate life and to carry on efficient action as an industrial association.

Art. 572. Industrial associations constituted by similar or allied categories, as provided in the sole subsection of article 570, shall take a name which, as far as possible, mentions specifically the various activities or occupations which have been grouped together, in conformity with the schedule of activities and occupations or in the case or sub-divisions in accordance with the instructions of the Industrial Association Membership Board.

Sole subsection. In cases covered by the last preceding article, the name of the principal industrial association shall be altered by the deletion of the name of the activity or occupation which has separated from it.

Art. 573. The grouping of industrial associations in federations shall be subject to the rules laid down in this chapter for the grouping of activities and occupations in industrial associations.

Sole Subsection. Federations of industrial associations for liberal professions may be organized independently of the basic group of the confederation, provided that the professions concerned are by law subject to the same regulations.

Art. 574. Within the same area, industrial undertakings of a handicraft type may constitute industrial organizations of first and second rank, separate from the industrial associations of undertakings which are of the same nature but of a different type.

Sole Subsection. The Industrial Association Membership Board, with the approval of the Ministry of Labor, Industry and Commerce, shall specify the size and other characteristics of undertakings of a handicraft type.

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Art. 575. The schedule of activities and occupations shall be revised every two years, on the recommendation of the Industrial Association Membership Board, for the purpose of adjusting it to the economic and occupational structure of the country.

(1) Before revising the schedule the Board shall request the industrial organizations and associations to submit suggestions.

(2) The proposals for revision shall be submitted to the Minister of Labor, Industry and Commerce for approval.

Art. 576. (Amended by Law No. 5819 of Nov. 6, 1972) The Industrial Association Membership Board shall consist of the Director-General of the National Labor Department, who shall act as chairman, and of the following members:

I. two representatives of the National Labor Department;

II. one representative of the Secretary of Employment and Wages;

III. one representative of the National Institute of Technology of the Ministry of Industry and Commerce;

IV. one representative of the National Institute of Colonization and Agrarian Reform of the Ministry of Agriculture;

V. one representative of the Ministry of Transportation;

VI. two representatives from the economic categories; and

VII. two representatives of the occupational categories.

(1) (Amended by Decree Law No. 229 of Feb. 28, 1967) The members of the Industrial Association Membership Board shall be appointed by the Minister of Labor on the basis of:

(a) nominations by the appropriate minister, in the case of the representatives or the other ministries;

(b) nominations by the Director-General, in the case of the National Labor Department;

(c) elections held by the respective confederations at joint meetings, in the case of the representatives from the economic and occupational categories, following instructions issued by the Minister of Labor.

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(2) (Amended by Decree Law No. 229 of Feb. 28, 1967) Each member shall have a substitute, who shall be appointed at the same time.

(3) (Amended by Decree Law No. 925 of Oct. 10, 1969) Representatives from the economic and occupational categories shall hold office for three years.

(4) (Amended by Decree Law No. 229 of Feb. 28, 1967) Members of the Board shall receive an attendance allowance at a rate prescribed by executive decree.

(5) (Amended by Decree Law No. 506 of Mar. 18, 1969) In his absence, the Director-General of the National Labor Department shall be replaced as chairman by the deputy director or, in the absence of the latter, by the representative of the said Department on the Board.

(6) (Amended by Decree Law No. 229 of Feb. 28, 1967) In addition to the duties specified in this chapter with reference to membership of the industrial association system, whether individual or collective, and to the classification of activities and occupations, the Industrial Association Membership Board shall be competent to settle all doubts and disputes relating to the organization of industrial associations, subject to an appeal to the Minister of Labor.

Art. 577. The schedule of activities and occupations in force shall constitute the basic plan for the membership of industrial associations.

CHAPTER III

INDUSTRIAL ASSOCIATION CONTRIBUTION

Division I

Assessment and Collection of the Industrial Association Contribution

Art. 578. The contributions payable to industrial associations by persons belonging to the economic or occupational categories or the liberal professions represented by the said bodies shall be paid, collected and applied, under the heading of industrial association contribution, in the manner specified in this chapter.

Art. 579. The industrial association contribution shall be payable, by all persons belonging to a particular economic or occupational category or to a particular liberal profession, to the industrial association which represents the category or profession concerned; in default of such an association the provisions of article 591 shall apply.

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Art. 580. The industrial association contribution shall be paid annually in a single installment and shall consist:

I. (Amended by Law No. 6386 of Dec. 9, 1976) in the case of employees, irrespective of the form in which their remuneration is paid, of an amount equal to one day's remuneration;

II. in the case of agents or other persons working on their own account and persons engaged in a liberal profession, 30% of the higher reference value fixed by the Executive Power, in force during the period in which the industrial association contribution is due, rounding off any fraction of a cruzeiro to the next cruzeiro;

III. For employers, an amount proportional to the capital stock of the firm or enterprise, as registered in the Commercial Courts or similar organs, through the application of percentages, in accordance with the following progressive table:

Classes of Capital Percentage

1. Up to 150 times the higher reference value 0.8%

2. Over 150, up to 1,500 times the higher reference value 0.2%

3. Over 1,500, up to 150,000 times the higher reference value 0.1%

4. Over 150,000 up to 800,000 times the higher reference value .. 0.02%

(1) (Amended by Law No. 6386 of Dec. 9, 1976) The industrial association contribution provided in the Table shown in item III of this article shall correspond to the sum of the application of the percentages on the portion of the capital distributed in each category, observing the respective limits.

(2) (Amended by Law No. 6386 of Dec. 9, 1976) For the purpose of calculation of that which is dealt with in the progressive Table inserted in item III of this article, the reference value established by the Executive Power, in force on the valid date of the contribution, shall be rounded off to the next higher Cruzeiro.

(3) (Amended by Law No. 7047 of Dec. 1, 1982) The minimum contribution due by employers, regardless of the capital stock of the firm or enterprise, is established at 60% of the higher reference value to which the preceding subsection alludes, the capital equivalent to 800,000 times the higher reference value being established in the same manner for the purpose of calculation of the maximum contribution, in respect to the progressive Table shown in item III.

(4) (Amended by Law No. 6386 of Dec. 9, 1976) Self-employed agents or workers and liberal professionals, organized in a firm or enterprise with

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registered capital stock, shall collect the industrial association contribution in accordance with the progressive Table to which item III refers.

(5) (Amended by Law No. 6386 of Dec. 9, 1976) The entities or institutions that are not obligated to register capital stock, shall consider as capital, for the purpose of calculation of that which is provided in the progressive Table shown in item III of this article, the value resulting from the application of the percentage of 40% on the economic movement recorded in the immediately preceding fiscal year, of which the respective industrial association or Regional Labor Office shall be notified, observing the limits established in subsection (3) of this article.

(6) (Amended by Law No. 6386 of Dec. 9, 1976) Entities or institutions that verify, through an application directed to the Ministry of Labor, that they do not perform any economic activity for profit motives.

Art. 581. For the purposes of item III of the preceding article, the enterprises shall assign part of the respective capital to their branches, sub-offices or agencies, unless they are located in the territorial base of the industrial association representative of the economic activity of the principal establishment, in the proportion to their respective economic operations, giving due notice to the Regional Labor Delegations, in the locality of the seat of the enterprises, branches, sub-offices or agencies.

(1) If an undertaking carries on several economic activities, and none of them preponderates over the others, each of the said activities shall be incorporated in the appropriate economic category and the industrial association contribution shall be payable to the industrial association representative of that category; branches, sub-offices or agencies shall be treated in the manner specified in this article.

(2) "Preponderant activity" shall mean the activity characteristic of the final product, operation or objective, towards which all the other activities obtain, converging exclusively within a system of functional coordination.

Art. 582. The employer shall be bound to deduct in the pay-sheets of his employees for the month or March in each year the amount of the industrial association contribution payable by them to their respective industrial associations.

(1) The wages for one day's work, for the purpose of determining the amount to which item I of article 580 refers, shall be the equivalent--

(a) of a normal working day's wage, if the payment to the employee is made for a unit of time;

(b) or 1/30 of the amount received in the preceding month, if the remuneration was paid by the piece, by fee or by commission.

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(2) If the wage is paid in the form of a share in profits, or in cases where the employee habitually receives tips, the industrial association contribution shall amount to 1/30th of the amount taken as the basis in the month or January for the employee's contribution to the Social Insurance.

Art. 583. The collection of the industrial association contribution of employees and workers shall be effected in the month of April of each year, and that relative to agents, independent workers and liberal professionals shall be effected in the month of February.

(1) The collection shall be in conformity with the system of rules, in accordance with the instructions issued by the Ministry of Labor.

(2) The deposit voucher of the industrial association contribution shall be remitted to the respective industrial association; in default of the latter, it shall be re-superior grade, and, as the case may be, to the Ministry of Labor.

Art. 584. The list of contributors drawn up by the industrial associations or, failing this, by the federations or confederations coordinating the associations in the relative category shall be taken as a basis for the payment of the industrial association contribution by agents or other persons working on their own account and by persons engaged in a liberal profession.

Art. 585. Persons engaged in a liberal profession may opt for payment of the industrial association contribution exclusively to the industrial association for their respective professions, unless they effectively practice their professions within a firm or enterprise and are so registered.

Sole Subsection. In this case, on production of the taxpayer's declaration and of evidence of payment of the contribution in the form of a receipt given by the industrial association for the liberal profession concerned, the employer shall refrain from making the deduction mentioned in article 582 from the wages of the person liable for the contribution.

Art. 586. The industrial association contribution shall be collected, in the months set forth in the present chapter, by the Federal Savings Bank, The Bank of Brazil, S.A. or by the national banking establishments making up the system of collection or federal taxes, which, in accordance with instructions issued by the National Monetary Council, shall pass on the amounts collected to the Federal Savings Bank.

(1) In localities where the establishments provided in the first paragraph of this article do not exist, the State Savings Banks shall be included as collection agents,

(2) In the case of an employer, agent or other person working on his own account or persons engaged in a liberal profession, the collection shall be

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effected by the persons themselves and shall be paid directly to the collecting establishment.

(3) The industrial association contribution due by employees and separated workers shall be collected by the employer and by the industrial association, respectively.

Art. 587. The collection or industrial association contribution of the employers shall be effected in the month of January of each year, or, for those which were established after that month, at the time of their application to the respective departments for registration or an operating license.

Art. 588. The Federal Savings Bank shall maintain a current account entitled "Deposits of Collections of the Industrial Association Contributions", in the name or each one of the industrial associations benefiting, supplying the Ministry of Labor with the pertinent information to administrate those entities.

(1) Sums in the current account referred to at the beginning of this article may be withdrawn by means of a banking order or check with the signatures or the president and treasurer of the industrial association.

(2) The Federal Savings Bank shall remit, monthly, to each industrial association, a statement of the respective current account, and, when requested, to the organs of the Ministry of Labor.

Art. 589. From the amount of the collection of the industrial association contribution shall be made the following deductions by the Federal Savings Bank, in the manner of the instructions issued by the Ministry of Labor--

I. 5% for the corresponding confederation;

II. 15% for the federation;

III. 60% for the respective industrial association;

IV. 20% for the "Special Employee and Salary Account".

Art. 590. In default of a confederation, the percentage provided in item I of the preceding article shall be paid to the federation representative of the group.

(1) In default of a federation, the percentage intended for it shall be paid to the confederation corresponding to the same economic or professional category.

(2) In default of industrial organizations of higher rank, the percentage designated for such shall be paid to the "Special Employee and Salary Account".

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(3) If there is neither an industrial organization nor an industrial organization of higher rank, the industrial association contribution shall be credited wholly to the "Special Employee and Salary Account".

Art. 591. If there is no industrial association, the percentage provided in item III of article 589 shall be credited to the federation corresponding to the same economic or professional category.

Sole Subsection. In the case provided in this article, the percentages provided in items I and II of article 589 shall be paid to the confederation.

Division II

Utilization of the Industrial Association Contribution

Art. 592. The industrial association contribution, after expenses for its collection, payment and control have been covered, shall be applied by the industrial associations, in accordance with the respective by-laws, for the following purposes:

I. Industrial associations of employers and independent agents:

(a) technical and legal assistance;

(b) medical, dental, hospital and pharmaceutical assistance;

(c) the carrying out of economic and financial studies;

(d) job placement agencies;

(e) cooperatives;

(f) libraries;

(g) nurseries;

(h) congresses and conferences;

(i) measures for commercial and industrial development in the Country and abroad, as well as other measures to stimulate and improve national production;

(j) fairs and expositions;

(l) prevention of work accidents;

(m) sports events,

II. Employee industrial associations:

(a) legal assistance; 118


(c) maternity assistance;

(d) job placement agencies;

(e) cooperatives;

(f) libraries;

(g) nurseries;


(i) funeral help;

(j) holiday camps and recreation centers;

(l) prevention of work accidents;

(m) sporting and social events;

(n) education and professional training;

(o) scholarships.

III. Industrial associations of the liberal professions:

(a) legal assistance;



(d) scholarships;

(e) cooperatives;

(f) libraries;

(g) nurseries;


(i) funeral help;


(l) technical and scientific studies;

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(m) sporting and social events;

(n) education and professional training;

(o) awards for technical and scientific works;

IV. Industrial associations of independent workers:

(a) technical and legal assistance;



(d) scholarships;

(e) cooperatives;

(f) libraries;

(g) nurseries;


(i) funeral help;


(l) professional education and training;

(m) sporting and social events.

(1) The application provided in this article shall set forth the criterion of each entity, which, for that purpose, shall always conform to the peculiarities of the respective group or category, the Ministry of Labor being enabled to permit the inclusion of new programs, provided that the fundamental assistance services of the entity are assured.

(2) The industrial associations may designate up to 20% of the resources of the industrial association contribution in their annual budgets for the carrying on of their administrative activities, regardless of ministerial authorization.

(3) The use of the industrial association contribution provided in subsection (2), may not exceed the total value of the monthly social allocations consigned in the budgets of the industrial associations, unless there is express authorization of the Ministry of Labor.

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Art. 593. The percentages allotted to industrial organizations of higher rank shall be utilized in conformity with decisions of the board of representatives of the association concerned.


Division III

Industrial Association Contribution Committee


Division IV

Penalties

Art. 598. (Amended by Law No. 7855 of Oct. 24, 1989) Without prejudice to criminal proceedings and to the penalties specified in article 553, a fine of not less than three-fifths nor more than 600 regional reference values shall be imposed for contraventions of the provisions of this chapter by the Regional Labor Offices.

Sole Subsection. The fine shall vary according to the nature of the offense and the social and economic situation of the guilty person.

Art. 599. In the case of persons engaged in liberal professions, the penalty shall consist of suspension of the right to practice until the necessary payments have been made; it shall be imposed, in pursuance of notice given by the supervising authorities, by the public or autonomous disciplinary bodies of the liberal profession concerned.

Art. 600. (Amended by Law No. 6181 of Dec. 11, 1974 and Laws Nos. 6986 of Apr. 13, 1982 and 7855 of Oct. 24, 1989) If the industrial association contribution is paid voluntarily after the expiry of the time limit prescribed by this chapter for the deposit thereof, it shall be increased by a fine for delay amounting to 10% (ten per cent.) in the first 30 days, with an addition of 2% per month for subsequent delinquency, over and above the late interest of 1% per month and monetary correction, and the offender shall not in this case be liable to any further penalty.

(1) (Amended by Law No. 6181 of Dec. 11, 1974 and Laws Nos. 6986 of Apr. 13, 1982 and 7855 of Oct. 24, 1989) The proceeds of this fine shall accrue to the following successively:

(a) To the respective Industrial Association;

(b) to the respective Federation, in the absence of an Industrial Association;

(c) To the respective Confederation, if no Federation exists.

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(2) (Amended by Law No. 6181 of Dec. 11, 1974, Laws Nos. 6986 of Apr. 13, 1982 and 7855 of Oct. 24, 1989) In the absence of the Industrial Association or entity of higher degree, the amount to which the preceding paragraph refers shall accrue to the account of Employment and Wages.

Division V

General Provisions

Art. 601. When engaging any employee, the employer shall require him to produce a receipt for the payment of the industrial association contribution.

Art. 602. If an employee is unemployed in the month when the industrial association contribution is to be deducted, the contribution shall be deducted from his wages for the first month after he resumes work.

Sole Subsection. This procedure shall also apply to employees who are engaged after the month in question and who were not employed previously and do not produce a receipt for the tax.

Art. 603. Employers shall be bound to give the officials responsible for supervision all explanations requisite for the performance of their duties and to submit to them on request their books, paysheets, and other documents constituting evidence of payments to employees, in so far as concerns such payment; otherwise they shall be liable to a fine.

Art. 604. Agents or other persons working on their own account or persons engaged in liberal professions shall be bound to give the officials responsible for supervision any explanations which they may request (including production of the receipt for the industrial association contribution.

Art. 605. Industrial organizations shall be bound to cause notices relating to the deposit of the industrial association tax to be published for three days in the newspapers with the largest local circulation at least ten days before the date fixed for the deposit thereof in the Bank.

Art. 606. (Amended by Decree Law No. 925 of Oct. 10, 1969) If the industrial contribution is not paid, the industrial association may cause it to be recovered judicially by distraint proceedings; a certificate issued by the regional authorities of the Ministry of Labor shall be valid as documentary proof of debt.

(1) The Ministry of Labor shall submit the instructions regulating the issue of the certificate to which this article refers, which must show the identity of the contributor, the indication of the amount due and the designation of the entity to which the amount of the industrial contribution should be paid, in accordance with the respective industrial association board.

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(2) For the purposes of judicial collection of the industrial contribution, the privileges of the Public Treasury shall extend to the industrial associations, with exception of special privileges, for collection of the amount due.

Art. 607. A receipt for the payment of the industrial association contribution and for the deposit or the industrial association contribution deducted from the employees' wages shall be deemed to be an essential document for the submission of tenders for public or administrative services or for supplies to semi-official or autonomous departments.

Art. 608. Federal, State or municipal departments shall not approve registration or grant operating licenses or licenses for the renewal of activities to establishments or to offices of agents or other persons working on their account, or persons engaged in liberal professions, or grant licenses for the occupation of premises, unless proof of payment of the industrial association contribution is produced, as provided in the last preceding article.

Sole Subsection. Non-observance of that provided in this article shall cause, as a matter of law, the nullity of the acts herein referred to, as well as those mentioned in article 607.

Art. 609. The deposit of the industrial association contribution and all entries and transactions in the accounts relating thereto shall be exempted from Federal, State or municipal stamp duty and fees.

Art. 610. Any doubts which arise in the application or this chapter shall be settled by the Industrial Association Contribution Committee; and the instructions necessary for its administration shall be issued by the Minister of Labor.

TITLE VI

COLLECTIVE LABOR AGREEMENTS

Art. 611. A collective labor agreement is an agreement laying down certain binding principles whereby two or more industrial associations representing economic and occupational categories(l) stipulate certain conditions of employment governing individual employment relationships within their respective spheres of representation.

(1) Industrial associations representing occupational categories (For a definition of these terms see article 511 of this Law.) shall have the right to conclude collective contracts with one or more undertakings in the corresponding economic category, whereby they stipulate certain conditions of employment governing employment relationships within the undertaking or undertakings concerned.

(2) Federations or, in the absence of federations, confederations representing economic or occupational categories may conclude collective agreements governing, within their respective spheres of representation, the employment relationships or affiliated categories that are not organized in industrial associations.

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Art. 612. An industrial association may conclude a collective agreement or collective contract only if a decision to that effect has been taken by a general meeting specially convened for the purpose in accordance with the relevant provisions in the by-laws; the quorum for attendance and voting at such a meeting shall, on the first convocation, by two-thirds of the members of the association or of the persons concerned (depending on whether the instrument is an agreement or contract) and, on the second convocation, one-third.

Sole Subsection. The quorum for attendance and voting in an industrial organization having more than 5,000 members shall, on the second convocation, be one-eighth of the total membership.

Art. 613. A collective agreement or collective contract shall invariably contain the following information:

(1) the names of the industrial associations, or the industrial associations and undertakings, that are parties to it;

(2) the period for which it is concluded;

(3) the categories of classes of employees covered by its provisions;

(4) the agreed conditions that are to govern individual employment relationships during its currency;

(5) rules for the settlement of disputes arising between the contracting parties in connection with its application;

(6) provisions as to the procedure for prolonging or revising the text, either wholly or in part;

(7) the rights and obligations of the employers and employees;

(8) the penalties to be incurred by the contracting industrial associations, or employers and employees, as the case may be, in the event of non-compliance with its provisions.

Sole Subsection. Every collective agreement or collective contract shall be made in writing, without any corrections or erasures, and in as many copies as there are industrial associations or undertakings that are parties to it, plus one copy for purposes of registration.

Art. 614. The contracting industrial associations or undertakings shall, within eight days of signing the text, make arrangements, either jointly or separately, for a copy of it to be deposited for purposes of registration and filing with the National Labor Department, if the text is nationwide in scope or applies to more than one state, and with the regional services of the Ministry of Labor and Social Welfare, in other cases.

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(1) A collective agreement or collective contract shall come into operation three days after it has been deposited with the authorities referred to in this article.

(2) A certified copy of every collective agreement or collective contract shall be displayed in a conspicuous place by the contracting associations, in their offices and in the establishments or every undertaking within its sphere of application, within five days of the deposit of the text, as provided in this article,

(3) It shall not be lawful to fix a longer period than two years for the currency of any collective agreement or collective contract.

Art. 615. The prolongation, revision, denunciation or cancellation of a collective agreement or collective contract, whether wholly or in part shall invariably be subject to the approval of a-general meeting of the contracting associations or parties, for which purpose the provisions of article 612 shall apply.

(1) The text whereby a collective agreement or collective contract is prolonged , revised , denounced or canceled shall be deposited for purposes of registration and filing with the authority with which the agreement or contract was originally deposited in terms of article 614.

(2) Any amendment made to a collective agreement or collective contract as a result of the revision or cancellation of any part of it shall come into operation three days after the deposit of the text in accordance with subsection (1).

Art. 616. No industrial association representing economic or occupational categories and no undertaking, even if it is not represented by an industrial association, may refuse to engage in collective bargaining, if invited to do so.

(1) Where an industrial association or undertaking encounters a refusal to engage in collective bargaining, it shall so inform the National Labor Department or the regional office of the Ministry of Labor and Social Welfare, as the case may be, so that a summons may be served on the industrial association or undertaking refusing to bargain.

(2) Where any party persists in its refusal to engage in collective bargaining by ignoring the summons served by the National Labor Department or the regional office of the Ministry of Labor and Social Welfare or where the negotiations fail, the industrial associations or undertakings concerned may commence a collective dispute.

(3) Where a collective agreement, collective contract or binding award is currently in force, it shall not be permissible to commence a collective dispute more than 60 days before its expiry and any new text shall take effect from the date of such expiry.

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(4) It shall not be permissible to commence a collective dispute of an economic nature until all possibilities of arriving at a collective agreement or collective contract have been exhausted.

Art. 617. Where the persons employed in one or more undertakings decide to conclude a collective contract with their undertaking or undertakings, they shall give notice of their intention in writing to the industrial association representing their occupational category, which shall have eight days in which to take charge of the negotiations between the parties; the same procedure shall be observed by the undertakings concerned in relation to the industrial association representing their economic category.

(1) If the industrial association fails to discharge the task entrusted to it within eight days, the parties concerned may draw the matter to the attention of the federation to which the association belongs or, if there is no such federation, the corresponding confederation, so that it can take charge of the negotiations within the same time limit. On the expiry of this latter period the parties may open the negotiations directly and pursue them to their conclusion.

(2) The industrial association shall convene a general meeting of the persons directly concerned, whether unionized or not, to discuss the collective contract and the provisions of article 612 shall then apply.

Art. 618. Undertakings and institutions that are not covered by the plan for the membership of industrial associations referred to in article 577 of this Consolidation may conclude collective contracts with the industrial associations representing their employees, as provided in this Title.

Art. 619. No provision of an individual contract of employment that conflicts with the terms or a collective agreement or collective contract shall take precedence over the latter and shall be ipso jure null and void.

Art. 620. The conditions stipulated in a collective agreement shall, if they are more favorable, take precedence over those stipulated in a collective contract.

Art. 621. The clauses of a collective agreement or collective contract may include provisions as to the establishment and operation of joint committees for consultation and collaboration at the level of the undertaking and as to profit-sharing. Such provisions shall state how such committees are to-be set up, how they are to operate, what their powers and duties are to be and, where appropriate, how the profit-sharing scheme is to apply.

Art. 622. Employers and employees concluding individual contracts of employment which lay down conditions contrary to the provisions of a collective agreement or collective contract that applies to them shall be liable to the fine prescribed therein.

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Sole Subsection. The fine to be imposed on an employee shall not exceed half the fine to which the employer would be liable in the same conditions.

Art. 623. Any provision in a collective agreement or collective contract which directly or indirectly conflicts with any ban or rule forming part of the Government's economic and financial policy or the wage policy currently in force shall be "opso jure" null and void and shall not be capable of enforcement before any public authority or government department, even for the purpose of revising the prices or rates of goods or services.

Sole Subsection. In cases covered by this article the fact that a provision is null and void shall be declared, either automatically or on application by any party concerned, by the Minister of Labor and Social Welfare or by a labor court in proceedings brought before it.

Art. 624. The validity of any clause increasing or adjusting wage rates shall, if it implies any increase in the prices or rates controlled by any public authority or government department, be subject to prior consideration by such authority or department and to an explicit statement on its part as regards the possibility of increasing the prices or rates concerned, and to what extent.

Art. 625. Any disputes arising out of the application of any collective agreement or collective contract concluded in accordance with this Title shall be settled by the labor courts.

TITLE VI-A

COMMISSIONS OF CONCILIATION (Added by Decree Law No. 9958 of Jan. 12, 2000)

Art. 625-A. (Added by Decree Law No. 9958 of Jan. 12, 2000) Enterprises and unions may institute Commissions of Prior Conciliation composed of equal representation of employee and employer representatives, with the duty of trying to reconcile individual labor conflicts.

Sole Paragraph. The Commissions referred to in the beginning of this article may be constituted by groups of enterprises or several labor unions.

Art. 625B. (Added by Decree Law No. 9958 of Jan. 12, 2000) A Commission instituted in the framework of the enterprise shall be composed of at least two and at most ten members, and it will observe the following standards:

I. half of its members shall be appointed by the employer and the other half shall be elected by the employees, in secret ballot, audited by the union for the occupational category;

II. the Commission shall have as many deputy representatives as there are regular representatives;

III. the mandate of its members, both regular and deputy, shall be for one year, renewal thereof being permitted.

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(1) Dismissal of employees' representative members of the Commission of Prior Conciliation, both regular members and deputies, is forbidden for up to one year after the end of the mandate, unless they commit a serious offense in the terms of the law.

(2) An employees' representative will carry on his normal work in the enterprise, halting their activities only when summoned to act as conciliator, the time spent in that activity being computed as time of actual work.

Art. 625C. (Added by Decree Law No. 9958 of Jan. 12, 2000) A Commission instituted in the framework of a union shall have its constitution and standards of functioning defined in a collective convention or agreement.

Art. 625D. (Added by Decree Law No. 9958 of Jan. 12, 2000) Any labor claim shall be submitted to the Commission of Prior Conciliation in the locality in which the services are rendered, once the Commission has been instituted within the framework of the enterprise or of the labor union of the occupational category in question.

(1) The claim shall be drawn up in writing or reduced to unmistakable terms by any of the members of the Commission, a signed and dated copy being delivered by the member to the interested parties.

(2) If the conciliation does not succeed, a declaration of the frustrated conciliatory attempt shall be furnished to the employee and the employer with the description of its object, which shall be signed by the members of the Commission and must be attached to the possible labor complaint.

(3) In case of a relevant reason that makes the observance of the procedure provided at the beginning of this article an impossibility, the circumstance declared in the initial petition of action brought before the Labor Justice shall be considered.

(4) If an enterprise Commission and a union Commission exist in the same place for the same category, the interested party shall choose one of them to submit his claim to, the one that first considers the request being competent.

Art. 625E. (Added by Decree Law No. 9958 of Jan. 12, 2000) Once the conciliation is accepted, the conclusion will be drawn up and signed by the employee, the employer or his representative and by the members of the Commission, the parties being furnished a copy thereof.

Sole Paragraph. The conclusion of the conciliation is an extrajudicial bond conveying an enforceable right and shall have the effect of a general release, except insofar as expressly reserved.

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Art. 625F. (Added by Decree Law No. 9958 of Jan. 12, 2000) Prior Conciliation Commissions shall have a period of 10 days to hold the session to attempt conciliation, as from the provocation of the interested party.

Sole Paragraph. Once the period has elapsed without a session being held, the declaration to which paragraph 2 of art. 625D refers shall be furnished on the last day of the period.

Art. 625G. (Added by Decree Law No. 9958 of Jan. 12, 2000) The prescription period shall be suspended as from the provocation of the Commission of Prior Conciliation, and the remainder thereof shall resume as from a frustrated attempt at conciliation or from the elapse of the period provided in art. 625F.

Art. 625H. (Added by Decree Law No. 9958 of Jan. 12, 2000) The provisions of this Title shall be applied to Inter-Union Centers of Labor Conciliation in operation or those that shall be created, insofar as applicable, provided that the principles of parity and of collective negotiation are observed in their constitution.

TITLE VII

APPLICATION OF ADMINISTRATIVE FINES

CHAPTER I

SUPERVISION, PROCEDURE AND IMPOSITION OF FINES

Art. 626. The competent authorities of the Ministry of Labor, Industry and Commerce, or the authorities which perform duties by delegation, shall be responsible for supervision of strict compliance with the rules for the protection of labor.

Sole Subsection. The inspectors of the social insurance institutions and of the semi-official bodies in general attached to the Ministry of Labor, Industry and Commerce shall be competent to exercise the supervision provided for in this article, in conformity with instructions to be issued by the Minister of Labor, Industry and Commerce.

Art. 627. For the guidance of persons responsible for compliance with the laws for the protection of labor, double visits of inspection shall be made in the following cases:

(a) on the promulgation or issue of new laws, regulations or ministerial instructions, exclusively for the purpose of instructing the persons responsible for complying with these laws, regulations or ministerial instructions;

(b) on the occasion of the first inspection of establishments or workplaces which have been recently inaugurated or taken over.

Art. 628. Except as provided in article 627, a report shall be drawn up of every violation of a statutory provision discovered by an inspector in the course of a visit of

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inspection; any person failing to prepare such a report shall incur administrative liability.

(1) Every undertaking shall be required to keep a book, known as a labor inspection register, in such form as may be approved by ministerial order.

(2) An inspector shall record his visit of inspection in this book and shall state the date on which and time at which the visit began and ended, his findings and, where appropriate, any irregularities discovered or orders given, with the corresponding periods for compliance; he shall also make a legible entry, giving particulars of his official status.

(3) Where it is proved that an inspector has acted in bad faith by omitting any detail from the book or by including any detail in it, he shall be deemed to have committed a serious breach of his duties and shall accordingly be liable to be suspended for a maximum of 30 days; if the offense recurs, an administrative inquiry shall invariably be held.

(4) An inspector reporting on a non-existent undertaking or an undertaking with a non-existent address or present in an inaccurate record of the facts shall be deemed to have committed a serious breach of his duties and shall be liable to be punished in the manner referred to in subsection (3).

Art. 629. The report of an offense shall be drawn up in duplicate, in accordance with the prescribed forms and instructions; one copy shall be handed to the offender in return for a receipt or sent to him by registered post within ten days of its preparation, together with a stamped envelope for the acknowledgment of receipt; an official failing to observe this procedure shall be liable for the consequences.

(1) The value of the report as evidence shall not depend on its being signed by the offender or by any witnesses; the report shall be drawn up in the premises inspected, unless a valid reason to the contrary is stated in the report itself, in which case it shall be prepared within 24 hours; an official failing to observe this procedure shall be liable for the consequences.

(2) Once the report of an offense has been drawn up, it shall not be allowed to lapse and the course of the proceedings shall not be suspended; the inspector shall be bound to submit the report to the competent authority, even if an error has been made.

(3) The offender shall have ten days, reckoned from his receipt of the report, in which to prepare his defense,

(4) The report shall be registered, with a brief account of the main elements, in a special book to be kept by each inspection service, so that a check can be kept on the progress of the case.

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Art. 670. (Amended by Decree Law No. 229 of Feb. 28, 1967) An inspector shall not exercise the powers or perform the duties of his office without producing his official identity card prepared by the competent authority and duly countersigned.

(1) (Amended by Decree Law No. 229 of Feb. 28, 1967) It shall not be lawful to issue an official identity card to any person who is not empowered by reason of his post or office to carry out inspection duties in the field of labor legislation.

(2) (Amended by Decree Law No. 229 of Feb. 28, 1967) The identity card referred to in this article shall be returned for cancellation, on pain of the penalties prescribed by law, if the holder is transferred to another public post, relieved of his duties or resigns, or if he is granted leave of absence for more than 60 days or is suspended.

(3) (Amended by Decree Law No. 229 of Feb. 28, 1967) An inspector shall have free access to all parts of an establishment subject to labor legislation and every employer, through his managers or agents, shall be obliged to supply him with the explanations he requires to discharge his statutory duties and to produce for him, on request, any documents providing evidence of strict compliance with the provisions governing the protection of labor.

(4) (Amended by Decree Law No. 229 of Feb. 28, 1967) All documents subject to inspection shall, on pain of the penalties prescribed by law, be kept in the workplaces concerned, and it shall only be permissible by way of exception and subject to the approval or the competent authority for them to be produced on a day and at a time stipulated by the inspector beforehand.

(5) (Amended by Decree Law No. 229 of Feb. 28, 1967) Within his area an inspector shall be entitled to free transport by any public or private transport undertaking, on production of his official identity card.

(6) (Amended by Decree Law No. 229 of Feb. 28, 1967 and Law No. 7855 of Feb. 24, 1989) Any person failing to comply with subsections (3), (4) and (5) shall be deemed to have resisted or obstructed an inspector and his actions shall be the subject of a report and punishable by a fine equal to not less than 15 times nor more than 150 times the regional reference value, account being taken not only of any extenuating or aggravating circumstances but also of the offender's financial situation and the means available to him for complying with the law.

(7) (Amended by Decree Law No. 229 of Feb. 28, 1967) For the purposes of subsection (5) the competent authority shall publish a list, in the months of January and July each year, of the inspectors holding official identity cards.

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(8) (Amended by Decree Law No. 229 of Feb. 28, 1967) On request the police authorities shall provide inspectors with the assistance they require for the proper exercise of their statutory powers.

Art. 631. Every public official, whether Federal, State or municipal, and every legal representative of an industrial association shall have the right to report any contravention which he may observe to the competent authority of the Ministry of Labor, Industry and Commerce.

Sole Subsection. On receipt of such information, the competent authority shall make the necessary investigations forthwith and shall draw up such reports as may be appropriate.

Art. 632. The defendant shall be entitled to request that such witnesses be heard and investigations made as seem to him necessary for the elucidation of the case; nevertheless, the authority shall decide respecting the necessity for the taking of such evidence.

Art. 633. The time limits for defense or appeal may be prolonged, in accordance with an express order of the competent authority, if the defendant lives in a locality other than that where the authority is situated.

Art. 634. In default of any special provision, fines shall be imposed by the regional authorities competent for labor matters, in the manner prescribed by this Title.

Sole Subsection. The imposition of a fine shall not exempt the offender from any liabilities which he may incur on account of a contravention of the penal laws.

CHAPTER II

APPEALS

Art. 635. Any person aggrieved of a decision to impose a fine for a contravention of the labor laws and regulations shall be entitled, if no provision has been made for any special procedure, to appeal to the director-general of the competent department or service of the Ministry of Labor and Social Welfare.

Sole Subsection. The reasons for a decision shall invariably be given.

Art. 636. (Amended by Decree Law No. 229 of Feb. 28, 1967) Every appeal shall be lodged, within ten days of the receipt of the notice, with the authority that imposed the fine; after processing the appeal the said authority shall refer it to the next higher authority.

(1) (Amended by Decree Law No. 229 of Feb. 28, 1967) No action on an appeal shall be taken unless the appellant furnishes evidence of having deposited the fine.

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(2) (Amended by Decree Law No. 229 of Feb. 28, 1967) Notice shall be given by an announcement in the official press only if the offender's whereabouts are uncertain or unknown.

(3) (Amended by Decree Law No. 229 of Feb. 28, 1967) Notice given in terms of this article shall also indicate a time limit of ten days for the offender to raise the necessary money for the fine; if he fails to do so, it shall be collected by distraint.

(4) (Amended by Decree Law No. 229 of Feb. 28, 1967) The deposit or payment guidelines shall be issued in three copies and the payment of the fine must proceed within five days to the competent federal bureaus that shall write up the receipt to credit the Ministry of Labor.

(5) The second copy of the guidelines of payment shall be returned by the offender to the bureau that issued it, up to the sixth day after its issue, in order for the bureau to make a record of the procedure.

(6) (Amended by Decree Law No. 229 of Feb. 28, 1967) The fine shall be reduced by 50% if the offender does not appeal and pays the amount into the Treasury within ten days, reckoned from his receipt of the notice or its publication in the official press.

(7) (Amended by Decree Law No. 229 of Feb. 28, 1967) For the issuance of the guidelines in the case of subsection (6), the offender must attach proof of the date of receipt of the notice to the notification or to the page of the official newspaper that published it.

Art. 637. The authorities responsible for any decision taken in proceedings for a contravention of the labor laws which entails the filing of the case, subject to the sole subsection of article 635, shall automatically refer the matter to the next higher authority.

Art. 638. The Minister of Labor, Industry and Commerce shall have power to require that questions relating to supervision of the rules laid down in this Consolidation be referred to him for examination and decision, within a time limit of ninety days reckoned from the final decision in the case or in the course of the proceedings.

CHAPTER III

DEPOSITS, REGISTRATION AND RECOVERY

Art. 639. If the appeal is not allowed, the deposit shall be utilized to pay the fine.

Art. 640. The regional labor offices, acting on instructions from the Minister of State, may arrange for fines to be paid voluntarily before proceedings are instituted for their recovery by distraint.

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Art. 641. If the offender fails to appear, or fails to deposit the amount of the fine or penalty, the appropriate entry shall be made in a special register, kept in the department where the fine or Penalty was imposed, or where the claim in respect of which the fine was imposed originated; a certified true copy of the said entry shall be sent to the competent authority for the purpose of recovery by judicial proceedings, and the document in question shall be deemed to be a proof of a liquid and actual debt.

Art. 642. The provisions applicable to the recovery of debts owing to the Union shall apply to the recovery by judicial proceedings of fines imposed by the labor administrative authorities; proceedings shall be instituted in the Federal District and in capital cities of States where there are regional labor councils, by the Labor Courts Law Office and in other localities by the office of the Public Prosecutor for the States, in conformity with the provisions of Decree Law No. 960 of Dec. 17, 1938 (Decree respecting the recovery by judicial proceedings of debts owing to the Public Treasury, throughout the whole of the national territory (Diario Oficial, Dec. 21, 1938)

Sole Subsection. Repealed by Decree Law No. 9509 of July 24, 1946.

TITLE VIII

LABOR COURTS

CHAPTER I

INTRODUCTORY PROVISIONS

Art. 643. (Amended by Law No. 7494 of June 17, 1986) Disputes arising out of relations between employers and employees, as well as between independent piece-workers and those who receive their services, in activities which are governed by social legislation shall be settled by the labor courts, in accordance with this Title and in the manner prescribed by the rules of labor judicial procedure.

(1) Repealed by Law No. 3807 of Aug. 26, 1960.

(2) Questions relating to industrial accidents shall continue to be within the jurisdiction of the ordinary courts in the manner prescribed by Decree No. 24,637 of July 10, 1934 (Decree to issue new rules respecting liability for industrial accidents, and to provide for other matters) and subsequent legislation.

Art. 644. The labor courts shall consist of the following bodies:

(a) the Superior Labor Court;

(b) the regional labor courts;

(c) conciliation and arbitration boards or justices of the peace (juizos de direito).

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Art. 645. Recourse to the labor courts shall be compulsory; there shall be no exemption therefrom, except for good and sufficient reason.

Art. 646. The various bodies of the labor court system shall work in perfect co-ordination, with mutual collaboration, under the guidance of the chairman of the Superior Labor Court.

CHAPTER II

CONCILIATION AND ARBITRATION BOARDS

Division I

Composition and Procedure

Art. 647. Every conciliation and arbitration board shall consist of--

(a) a labor judge, who shall be chairman; -

(b) two members, one of whom shall represent the employers and the other the employees.

Sole Subsection. There shall be a substitute for each of the members.

Art. 648. Relatives by blood or by marriage to the third degree in civil law shall not be members of the same board.

Sole Subsection. The member who was appointed or took up office first shall have priority; if both were appointed or took up office on the same date the decision shall be taken by the casting of lots.

Art. 649. The boards may hold conciliation hearings, examine cases and make awards regardless of the number of members present, provided that the chairman (who shall have a casting vote in a case of equality of votes) is present.

(1) When determining objections, all members of a board shall be present.

(2) The chairman shall act alone in respect of the execution and liquidation of decisions.

Division II

Jurisdiction and Competence of the Boards

Art. 650. (Amended by Law No. 5442 of May 24, 1968) The jurisdiction of each conciliation and arbitration board shall cover the whole of the territory of the judicial district (comarca) where it sits, but may be extended or restricted only by federal law.

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Sole Subsection. (Amended by Law No. 5442 of May 24, 1968) The local laws of the Judicial Organization shall not influence the competency of the Conciliation and Arbitration Boards already created, unless otherwise determined by federal law.

Art. 651. The competence of the conciliation and arbitration boards shall be decided with reference to the locality where the employee who is the plaintiff or the defendant performs services for the employer, even if the contract has been concluded in another locality or abroad.

(1) If an agent or a commercial traveler is a party to the dispute, the competent board shall be the board for the locality where the employer resides, unless the employee is directly subordinate to an agency or branch, in which case the board within whose jurisdiction the agency or branch concerned is situated shall be competent.

(2) In the absence of an international agreement containing a provision to the contrary, the competency of conciliation and arbitration boards under this article shall cover disputes which arise in agencies or branches in foreign countries, if the employee concerned is Brazilian.

(3) If the employer causes work to be performed elsewhere than in the place specified in the contract of employment, the employee shall be entitled to lodge a complaint either in the court within whose jurisdiction the contract was concluded or in the court within whose jurisdiction the services in question are performed.

Art. 652. The conciliation and arbitration boards shall be competent--

(a) to conduct conciliation proceedings and pronounce judgment--

I. in disputes in which recognition of the security of tenure of the employee is claimed;

II. in disputes relating to remuneration, holidays and compensation for the cancellation of an individual contract of employment;

III. in disputes arising out of contracts for work by the job where the contractor is a wage-earning employee or handicraft worker;

IV. other disputes relating to individual contracts of employment;

(b) to examine and give judgment on cases relating to the establishment of serious offenses;

(c) to give judgment on objections raised against their own decisions;

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(d) to impose fines and other penalties with respect to matters within the jurisdiction of the boards.

Sole Subsection. Disputes respecting the payment of wages and those arising from the bankruptcy of the employer shall be given priority; where the complaint deals also with other matters, if the person concerned so requests, the chairman of the board may separate such disputes from the said other matters and hear them as separate cases.

Art. 653. The conciliation and arbitration boards shall have the following additional powers and duties:

(a) to require the competent authorities to take any measures which may be necessary to elucidate the cases submitted to them, and to take action against any authority which fails to comply with such a request;

(b) to take proceedings and carry out measures required by letters rogatory sent by a regional labor court or by the Superior Labor Court;

(c) to give judgment on challenges brought against their members;

(d) to give judgment on demurrers on the ground of incompetence which are made against them;

(e) to send out letters rogatory and to comply with any which may be sent to them;

(f) in general, in the interest of justice in matters relating to labor, to exercise all such powers and perform all such duties as may lie within their jurisdiction.

Division III

Chairmen of the Boards

Art. 654. (Amended by Decree Law No. 229 of Feb. 28, 1967) Deputy Labor Judges shall ingress into the Labor Magistrate in the event of a vacancy. Subsequent appointments shall be made through promotion or, atlernatively, by seniority and merit.

(1) Repealed by Law No. 7,221 of October 2, 1984.

(2) Repealed by Law No. 7,221 of October 2, 1984.

(3) (Amended by Law No. 6090 of July 16, 1974) The deputy judges shall be appointed after approval in a public competition through examination and certificate accomplished before the Regional Labor Court of the Region, valid for two years and extendible once only through the criteria of the same body for an equal period, and organized in accordance with the instructions issued by the Chairman of the Superior Labor Court.

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(4) (Amended by Decree Law No. 229 of Feb. 28, 1967) Only registered candidates shall be admitted to the competition after prior appraisal by the Regional Labor Court of the respective Region of the following requirements:

(a) A candidate must be at least 25 years of age, but less than 45 years;

(b) A candidate must be qualified for the performance of his duties.

(5) (Amended by Decree Law No. 229 of Feb. 28, 1967) Requests for the office of Chairman of the Board, whether the office is vacant or created by law, shall be made within each Region:

(a) (Amended by Law No. 6090 of July 16, 1974) when another Chairman is removed, seniority in office prevailing, if there is more than one request, provided that the removal had been required, within 15 days of the opening of the vacancy by the Chairman of the Regional Court, who must issue the respective act.

(b) by promotion of the deputy, whose acceptance shall be optional, in accordance with the criteria of seniority an merit, in turn.

(6) (Amended by Decree Law No. 229 of Feb. 28, 1967) Labor Judges, Chairmen of the Board, Deputy Judges and Court deputies shall be installed before the Chairman of the Court of the respective Region. In States that do not have a seat of a Regional Labor Court, the installation shall take place before the Chairman of the Court of Justice, who shall submit the term to the Chairman of the Regional Court of the jurisdiction of the person installed. In the Territories, the installation shall take place before the Chairman of the Regional Court of the respective Region.

Art. 655. Repealed by Decree Law No. 229 of Feb. 28, 1967.

Art. 656. (Procedure for appointing labor judges and their deputies).

(Amended by Law No. 8432 of June 11, 1992) A Deputy Labor Judge, provided that he is not a Deputy Chairman of the Board, may be appointed to act on Conciliation and Arbitration Boards.

(1) (Amended by Law No. 8432 of June 11, 1992) For the purpose mentioned in the first paragraph of this article, the Regional territory may be divided into zones, including the jurisdiction of one or more Boards, at the discretion of the respective Regional Labor Court.

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(2) (Amended by Law No. 8432 of June 11, 1992) The appointment referred to in the first paragraph of this article shall be the duty of the Chairman of the Regional Labor Court or, if there exists no specific governing provision, of whoever shall be indicated.

(3) (Amended by Law No. 8432 of June 11, 1992) When Deputy Labor Judges are deputies of Chairmen of the Boards, they shall receive fees for their duties.

(4) (Amended by Law No. 8432 of June 11, 1992) The Chairman of the Regional Labor Court or, if there exists no specific governing provision, whoever shall be indicated, shall see to the distribution and movement of the Deputy Judges between the different zones of the Region in the case in which such zones have been created in the manner of subsection (1) of this article.

Art. 657. (Amended by Decree Law No. 8737 of Jan. 19, 1946) Chairmen of the Boards and Deputy Chairmen shall receive remuneration or fees as established by law.

Art. 658. (Amended by Decree Law No. 8737 of Jan. 19, 1946) The principal duties of the Chairmen of the Boards, besides those that arise from the performance of their functions are:

(a) to maintain impeccable public and private conduct;

(b) to abstain from attending to solicitations or recommendations relative to the facts that have been or shall be submitted for their appraisal;

(c) to reside within the limits of their jurisdiction, not absenting themselves without leave of the Chairman of the Regional Court.

(d) to order and perform all the acts arising from their functions, within the established time limits, being subject to a reduction in fees corresponding

to one day抯 fees for each day in arrears.

Art. 659. In addition to those specified in this Title and those arising out of his office, the following powers and duties shall belong exclusively to the chairman of the board:

I. to preside at the hearings of the board;

II. to carry out his own decisions, those adopted by the board and any others which he may be instructed to carry out by letters regulatory;

III. to install in office the members appointed to the boards, the secretary and the other clerical staffs;

IV. to convene the substitutes for the members, when the latter are unable to act;

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V. if any member fails to attend three consecutive meetings, without sufficient reason, to report the matter to the chairman of the competent regional court for the purposes of article 727;

VI. to forward appeals lodged by the parties; he shall give reasons for the decision appealed against before transmitting the appeal to the regional court or shall submit the appeal to the board for decision, in cases covered by article 894;

VII. to sign the pay-sheets of the members and officials of the board;

VIII. not later than February 15th in each year, to submit to the chairman of the regional court a report on the work of the preceding year.

IX. (Added by Law No. 6203 of Apr. 17, 1975) To concede a preliminary measure, until the final decision of the procedure in labor claims seeking to render without effect a transfer governed by the subsections of Article 469 of this Consolidation.

X. (Added by Law No. 9270 of Apr. 17, 1996, effective April 18, 1996) To concede a preliminary measure, until the final decision of the procedure in labor claims seeking to reintegrate an industrial association director into employment, when the latter has been removed, suspended or dismissed by the employer.

Division IV

Members of the Boards

Art. 660. The members of the boards shall be appointed by the chairman of the regional court to whose jurisdiction they belong.

Art. 661. The following shall be required for the performance of the function of a member of the Board or deputy:

(a) to be Brazilian;

(b) to be of recognized moral character;

(c) to be over 25 years of age and less than 70 years of age;

(d) to be in full possession of civil and political rights;

(e) to be released from the obligation of military service;

(f) to have had more than two years of effective professional practice and to be a member of a professional association.

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Sole Subsection. The proof of the professional quality to which letter (f) of this article refers shall be made by means of a declaration of the respective Professional Association.

Art. 662. The choice of Members of the Boards and their deputies shall be made among the names appearing on the lists that, for that purpose, were directed by first degree professional associations to the Chairman of the Regional Court.

(1) For this purpose, each employers?association and employees?union, with a territorial base within the area of the Board, shall proceed totally or partly on the occasion determined by the Chairman of the Regional Court, to choose three names that shall appear on the list, applying the provisions of article 524 and subsections (1) to (3)a thereof to the election.

(2) Once the lists are received by the Chairman of the Regional Court, he shall designate the names of the Members of the Board and their respective deputies within five days, issuing a certificate for each of them, and presenting them with it upon their being installed in office.

(3) Within 15 days of the date of the installation, the investiture of a Member of the Board or of a deputy may be challenged by any interested party, without suspensive effect, by means of a written representation directed to the Chairman within the Regional Court.

(4) Once the challenge is received, the Chairman of the court shall immediately designate a reporter, who, if there is a necessity of opening testimonies or of proceeding with any procedures, shall provide for such to be carried out in the shortest possible time, submitting the challenge, for this purpose, to the judgment of the Court in the first session thereof.

(5) If the court deems the challenge proper, the Chairman shall provide the appointment of new Members of the Board or deputies.

(6) In the absence of an indication by the professional associations, the names for representatives of the respective professional economic categories on the Conciliation and Arbitration Boards, or in the localities where professional associations do not exist, shall be representatives freely appointed by the Chairman of the Regional Labor Court, observing the requirements demanded for the performance of his office.

Art. 663. The term of office of the members of the boards and their substitutes shall be three years; a person who has served without interruption for half or the said period may, if he so requests, be released from further service.

(1) If a member is released from service as provided in this article, or in the event of a member's inability to act, death or resignation, such member's place shall be taken by his substitute, who shall be summoned by the chairman of the board.

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(2) In default of the substitute on account of inability to act, death or resignation a new member and substitute shall be appointed from the persons whose names are on the lists mentioned in article 662; the persons appointed shall serve until the expiry of the term of office of the board.

Art. 664. The members of the boards and their substitutes shall take office before the chairman of the board on which they are to serve.

Art. 665. During their term of office the members of the boards and their substitutes shall have the same prerogatives as members of juries.

Art. 666. Members of boards and their substitutes shall receive the fee fixed by law for each hearing which they attend, subject to a maximum of twenty hearings in the month.

Art. 667. In addition to those mentioned in article 665, the members of the boards shall have the following prerogatives:

(a) to attend meetings of the court to which they belong;

(b) to advise the parties to settle their dispute by conciliation;

(c) to vote on decisions respecting cases and on matters relating to the standing orders of the court, which are submitted to them for discussion;

(d) to request that the documents be submitted to them for a period of twenty four hours;

(e) through the chairman, to put to the litigants, witnesses and experts any questions which they may wish to ask for the elucidation of the case,

CHAPTER III

JUSTICES OF THE PEACE

Art. 668. In localities not included within the area of jurisdiction of a conciliation and arbitration board, the justices of the peace (juizo de direito) shall be the bodies responsible for the administration of justice in labor matters, with the jurisdiction prescribed for them by the local Judiciary Act.

Art. 669. The competence of the justices of the peace when responsible for the administration of justice in labor matters shall be the same as that of the conciliation and arbitration boards in conformity with division II of the Last preceding chapter.

(1) In localities where there is more than 1 justice of the peace, competence shall be decided, between the civil judges, by allocation or according to the local judiciary division, in conformity with the local Judiciary Act.

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(2) If the criterion of competency in the Judiciary Act differs from that provided for in the preceding subsection, the senior civil judge shall be competent.

CHAPTER IV

REGIONAL LABOR COURTS

Division I

Composition and Working

Art. 670. The Regional Labor Court of the first Region shall be composed of 54 Judges, 36 being lifelong justices and 18 temporary members; The Regional Court of the second Region shall consist of 64 Judges, 42 being lifelong justices and 22 being temporary members; the Regional Court of the third Region shall be composed of 36 Judges, 24 being lifelong justices and 12 being temporary members; the Regional Court of the fourth Region shall be composed of 36 Judges, 24 being lifelong justices and 12 being temporary members; the Regional Court of the fifth Region shall be composed of 29 Judges, 19 being lifelong justices and 10 being temporary members; the Regional Court of the sixth Region shall be composed of 18 Judges, 12 being lifelong justices and 6 being temporary clerical personnel; the Regional Court of the seventh Region shall be composed of 8 Judges, 6 being lifelong justices and 2 being temporary members; the Regional Court of the eighth Region shall be composed of 12 Judges, 8 being lifelong justices and 4 being temporary members; the Regional Court of the 9th Region shall be composed of 28 Judges, 18 being lifelong justices and 10 being temporary members; The Regional Court of the 10th Region shall be composed of 17 Judges, 11 being lifelong justices and 6 being temporary members; the Regional Court of the 11th Region shall be composed of 8 Judges, 6 being lifelong justices and 2 being temporary members; the Regional Court of the 12th Region shall be composed of 18 Judges, 12 being lifelong justices and 6 being temporary members; The Regional Court of the 13th Region shall be composed of 8 Judges, 6 being lifelong justices and 2 temporary members; the Regional Court of the 14th Region shall be composed of 8 Judges, 6 being lifelong justices and 2 temporary members; the Regional Court of the 15th Region shall be composed of 36 Judges, 24 being lifelong justices and 12 being temporary members; the Regional Court of the 16th Region shall be composed of 8 Judges, 6 being lifelong justices and 2 being clerks of temporary investiture; the Regional Court of the 17th Region shall be composed of 8 Judges, 6 being justices of lifelong investiture and 2 being clerks of temporary investiture; the Regional Court of the 18th Region shall be composed of 8 Judges, 6 being justices of lifelong investiture and 2 being clerks of temporary investiture; the Regional Court of the 19th Region shall be composed of 8 Judges, 6 being justices with lifelong investiture and 2 being clerks with temporary investiture; the regional Court of the 20th Region shall be composed of 8 Judges, 6 being justices with lifelong investiture and 2 being clerks with temporary investiture; the Regional Court of the 21st Region shall be composed of 8 Judges, 6 being justices with lifelong investiture and 2 being clerks with temporary investiture; the regional court of the 22nd Region shall be composed of 8 Judges, 6 being justices with lifelong investiture and 2 being clerks with temporary investiture; the Regional

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Court of the 23rd Region shall be composed of 8 Judges, 6 being justices with lifelong investiture and 2 being clerks with temporary investiture; and the Regional Court of the 24th Region shall be composed of 8 Judges, 6 being justices with lifelong investiture and 2 being clerks with temporary investiture, all appointed by the President of the Republic.

(1) Vetoed.

(2) (Amended by Law No. 5442 of May 24, 1968) In the Regional Courts composed of 6 or more lifelong Judges and less than 11 Judges in total, one of them shall be chosen from among lawyers and one from among members of the Public Ministry of the Union attached to Labor Justice and the other from among Labor Judges, Chairmen of the Boards of the respective Region, in the manner provided in the preceding paragraph.

(3) Vetoed.

(4) (Amended by Law No. 5442 of May 24, 1968) The clerk judges referred to in this article shall represent employers and employees equally.

(5) (Amended by Law No. 5442 of May 24, 1968) There shall be one deputy for each clerk judge.

(6) Repealed by Complementary Law No. 54 of Dec. 22, 1986.

(7) The Regional Courts shall elect the respective Chairman and Vice-Chairman, as well as the Chairmen of the Groups, where the latter office exists, from among their lifelong justices.

(8) (Amended by Law No. 5442 of May 24, 1968) The Regional Courts of the 1st and 2nd Regions shall be divided into Groups, such division being composed of at least 12 Judges. Each Group shall be composed of three lifelong Judges and two clerks, a representative of the employees and another of the employers.

Art. 671. The rules laid down in article 648 respecting disqualification shall apply likewise to the work of the regional courts, and cases shall be settled in the same manner.

Art. 672. (Amended by Law No. 5442 of May 24, 1968) The Regional Courts, in their full composition, shall deliberate with the presence of one-half plus one of their judges, besides the Chairman, of which at least one of the former shall be a representative of the employees and another shall be a representative of the employers.

(1) (Amended by Law No. 5442 of May 24, 1968) The Groups may only deliberate with at least three of their judges present, the two clerk judges being among them. The Chairman of a Group may call other Judges from the class to which an absent or impeded judge belongs in order to complete this quorum.

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(2) (Amended by Law No. 5442 of May 24, 1968) In the Regional Courts, decisions shall be made by a majority vote of the judges present, except in the case of a declaration of unconstitutionality of a law or act of the public power in Plenary Court (Article 116 of the Constitution).

(3) (Amended by Law No. 5442 of May 24, 1968) The Chairman of the Regional Court, except in the case of a declaration of unconstitutionality of a law or act of the public power, shall only have a tie-breaking vote. In administrative sessions, the Chairman shall vote as the other judges, retaining still the casting vote.

(4) (Amended by Law No. 5442 of May 24, 1968) If an impasse occurs in the judgment of appeals against a decision or order of the Chairman, Vice-Chairman or the Court Reporter, the appealed decision or order shall prevail.

Art. 673. The procedure at the sittings of the regional courts shall be governed by their respective standing orders,

Division II

Jurisdiction and Competence

Art. 674. (Last amended by Law No. 8431 of June 9, 1992) For the purpose of the jurisdiction of the regional courts, Brazil shall be divided into the following 24 regions:

First region: State of Rio de Janeiro;

Second region: State of Sao Paulo;

COMMENT: Law No. 7520 of July 15, 1986 (Art. 1, (1), states that the Second Region of Labor Courts shall cover only the Municipality of the State Capital of Sao Paulo and the municipalities of Aruja, Barueri, Biritiba-Mirim, Caieiras, Cajamar, Carapicuiba, Cotia, Cubatao, Diadema, Embu, Embu-Guacu, Ferraz de Vasconcelos, Francisco Morato, Franco da Rocha, Guararema, Guaruja, Guarulhos, Itapecerica da Serra, Itapevi, Itaquaquecetuba, Jandira, Juquitiba, Mairipora, Maua, Moji das Cruzes, Osasco, Pirapora do Bom Jesus, Poa, Praia Grande, Ribeirao Pires, Rio Grande da Serra, Salesopolis, sanda Isabel, Santana do Parnaiba, Santo Andre, Santos, Sao Bernardo do Campo, Sao Caetano do Sul, Sao Vicente, Suzano and Taboao da Serra.

Third region: State of Minas Gerais;

Fourth region: States of Rio Grande do Sul;

Fifth region: States of Baia;

Sixth region: States of Pernambuco;

Seventh region: States of Ceara;

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Eighth region: States of Para and Amapa;

Ninth region: State of Parana;

Tenth region: Federal District

Eleventh region: States of Amazonas and Roraima;

Twelfth region: State of Santa Catarina;

Thirteenth region: State of Paraiba;

Fourteenth region: State of Rondonia and Acre;

Fifteenth region: State of Sao Paulo (area not covered by the jurisdiction established in the Second Region);

Sixteenth region: State of Maranhao;

Seventeenth region: State of Espirito Santo;

Eighteenth region: State of Goias;

Nineteenth region: State of Alagoas;

Twentieth region: State of Sergipe;

Twenty-First region: State of Rio Grande do Norte

Twenty-Second region: State of Piaui;

Twenty-Third region: State of Mato Grosso do Sul.

Sole Subsection. The regional courts shall have seats in the cities of: Rio de Janeiro (1st Region), Sao Paulo (2nd Region), Belo Horizonte (3rd Region), Porto alegre (4th Region), Salvador (5th Region), Recife (6th Region), Fortaleza (7th Region), Belem (8th Region), Curitiba (9th Region), Brasilia (10th Region), Manaus (11th Region), Florianopolis (12th Region), Joao Pessoa (13th Region), Porto velho (14th Region), Campinas (15th Region), Sao Luis (16th Region), Vitoria (17th Region), Goiania (18th Region), Maceio (19th Region), Aracaju (20th Region), Natal (21st Region), Teresina (22nd Region), Cuiaba (23rd Region) and Campo Grande (24th region).

Art. 675. Repealed by Law No. 5442 of May 24, 1968.

Art. 676. The number of regions, the jurisdiction and the category of the regional courts, as prescribed by the preceding articles, shall not be varied except by the President of the Republic.

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Art. 677. The competence of the regional courts shall be decided in the manner specified in article 651 and its subsections and, in cases of collective disputes, by the locality where the dispute has arisen.

Art. 678. (Amended by Law No. 5442 of May 24, 1968) When the Regional Courts are divided into Groups, the following competencies shall be given:

I. to the Plenary Court, especially:

(a) to conduct conciliation proceedings and give judgment in first instance in collective disputes;

(b) to process and give judgment in the first instance:

1) to reviews of standard judgments;

2) to extend decisions proffered in collective disputes;

3) to safety mandates;

4) to challenges to investiture of temporary clerical judges and their deputies on the Conciliation and Arbitration Boards;

(c) to process and give judgment in the last instance:

1) to appeals against fines imposed by the Groups;

2) to rescinding actions against decisions of the Conciliation and Arbitration Boards, Justices of the Peace installed in the labor Jurisdiction, Groups and their own decisions;

3) to conflicts of jurisdiction between their Groups, Justices of the Peace installed in the labor jurisdiction, Conciliation and Arbitration Boards, or between themselves and the aforementioned;

(d) to give judgment in a single or last instance:

1) to procedures and appeals of an administrative nature related to their auxiliary services and respective public servants;

2) to claims against administrative acts of their Chairman or any of their members, as well as

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against Judges of the first instance and their officials;

II. to the Groups:

(a) to give judgment on ordinary appeals provided in Article 895, a;

(b) to give judgment on appeals of petition or instrument, those denying decisions on appeals of their jurisdiction;

(c) to impose fines and other penalties relative to matters within their jurisdictional competence, and to give judgment on appeals lodged against decisions of the Boards and Justices of the Peace imposing fines and penalties.

Sole Subsection. (Amended by Law No. 5442 of May 24, 1968) Decisions of the Groups shall not give recourse to the Plenary Court, except in the case of item I, c, 1 of this article.

Art. 679. (Amended by Law No. 5442 of May 24, 1968) Regional Courts not divided into Groups shall be competent to give judgment on matters to which the preceding article refers, except that dealt with in no. 1 of paragraph c of item I, as well as conflicts of jurisdiction between Groups.

Art. 680. (Amended by Law No. 5442 of May 24, 1968) Both the Regional Courts and their Groups shall be competent:

(a) to require the Boards and the Justices of the Peace to take such proceedings and carry out such measures as may be necessary for pronouncing judgment on the cases submitted to them;

(b) to supervise the carrying out of their own decisions;

(c) to declare void any proceedings constituting a contravention of their decisions;

(d) to give judgment on challenges brought against their members;

(e) to give judgment on demurrers on the ground of incompetence which are made against them;

(f) to request the competent authorities to take any measures necessary to elucidate the cases submitted to them, and to take proceedings against any authority which fails to comply with any such request;

(g) in general, in the interests of justice in matters relating to labor, to exercise all such powers and perform all such duties as may arise from their jurisdiction.

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Division III

Chairmen of the Regional Courts (Labor Law)

Art. 681. (Amended by Law No. 6320 of Apr. 5, 1976) The Chairmen and Vice-Chairmen of the Regional Labor Courts shall be installed before the respective Courts.

Sole Subsection. Repealed by Law No. 6320 of Apr. 5, 1976.

Art. 682. The following powers and duties shall belong exclusively to the chairman of a regional court, in addition to those conferred and imposed upon him by this Title and to those arising out or his office:

I. Repealed by Law No. 5442 of May 24, 1968.

II. to appoint the members of boards and their substitutes;

III. to install the chairmen and vice-chairmen of boards and the judges, substitute judges and officials of the regional court, and to grant them and the members and substitute members or boards their regular holidays or leave of absence;

IV. to preside at the meetings of the court;

V. to preside at conciliation hearings in collective disputes;

VI. to give execution to his own decisions and those of the regional court;

VII. to convene substitutes to replace judges representing class interests in the regional court who are prevented from attending;

VIII. to report chairmen and members to the Superior Labor Court in cases covered by article 727 and its sole subsection;

IX. to determine appeals lodged by the parties;

X. in cases of collective disputes, to apply to the competent authorities for the necessary armed forces if there is a threat to public order;

XI. to carry out inspections of boards not less than once a year, or partial inspections whenever necessary, and to request the president of the court of appeal, whenever it appears advisable, to carry out an inspection of the justices of the peace who administer justice in labor matters;

XII. to allocate cases and appoint the judges who are to report thereon;

XIII. to appoint one of the officials of the regional court and of the boards in a given locality to act as allocating clerk;

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XIV. to sign the pay-sheets for judges and officials of the regional court.

(1) If the chairman of a board and the vice-chairman in the same locality are both absent or prevented from attending, the chairman of the regional court may appoint a substitute from another locality from among the vice-chairmen available, in order of seniority.

(2) If a member of a board and his substitute are both absent or prevented from attending, the chairman of the regional court may appoint a substitute from another locality, having regard to the occupational or economic category or the representative and to the order of seniority of the substitutes available.

(3) (Added by Law No. 3440 of Aug. 27, 1958) If any Judge representing class interests and his respective deputy are both absent or prevented from attending, the Chairman of the Regional Court may appoint one of the temporary members of the Conciliation and Arbitration Board to function in the sessions of the Court, having regard to the occupational or economic category of the representative.

Art. 683. Vice-chairmen shall preside when the chairmen of regional courts are absent or prevented from attending, and shall act as assistants to the chairmen whenever required.

(1) In the case of the regular holiday of thirty days, leave of absence, death or resignation, the chairman of the Superior Labor Court shall himself designate the vice-chairman.

(2) In other cases, the vice-chairman shall be designated by the chairman or the council or by notice from the secretary of the council and shall take up his duties at once, the chairman of the Superior Labor Court being notified of the decision.

Division IV

Judges Representing Class Interests in the Regional Courts

Art. 684. Judges representing class interests in the regional courts shall be appointed by the President of the Republic.

Sole Paragraph. (Amended by Law No. 5442 of May 24, 1968) The provisions of article 661 shall apply to the judges representing class interests in the regional courts who represent employers and employees.

Art. 685. Judges representing class interests in the regional courts who represent employers and employees and their substitutes shall be selected from persons whose

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names appear on lists forwarded for this purpose to the chairman of the Superior Labor Court by the industrial associations of higher rank with their head offices in the regions concerned.

(1) For the purposes of this article, when the chairman of the Superior Labor Court so requests, the board of representatives of each industrial association of higher rank shall draw up a list of three names selected by a majority vote.

(2) The chairman of the Superior Labor Court shall submit the names on the lists to the President of the Republic through the Minister of Justice and Internal Affairs.

Art. 686. Repealed by Legislative Decree No. 9797 of Sept. 9, 1946.

Art. 687. Judges representing class interests in the regional courts shall take up office before the chairman of the regional court concerned.

Art. 688. The provisions of article 663 shall apply to the judges representing class interests in the regional courts; new appointments shall be made from the names on the lists mentioned in article 685 or in the manner specified in article 686; articles 665 and 667 shall also apply.

Art. 689. The judges and substitute members of the regional court shall receive the fee fixed by law for each sitting which they attend, subject to a maximum of fifteen sittings per month.

Sole Subsection. If any member delays a case beyond the time limits fixed in the standing orders of the regional courts, he shall be liable, automatically, to a deduction equal to one-thirtieth part of the monthly fees to which he is entitled in respect of every case delayed.

CHAPTER V

SUPERIOR LABOR COURT

Division I

Preliminary provisions

Art. 690. The Superior Labor Court, which shall sit in the capital of the Republic and have jurisdiction throughout the national territory, shall be the highest instance for administration of justice in labor matters.

Sole Subsection. The Court shall function either as a plenary court or in separate divisions; workers and employers shall have an equal number of representatives.

Art. 691. Repealed by Legislative Decree No. 8737 of Jan. 19, 1946.

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Division II

Composition and Working of the Superior Labor Court

Art. 693. The Superior Labor Tribunal shall be composed of 27 judges, with the title of Ministers, as follows:

(a) 17 lifelong justices, of which 11 shall be chosen from among career labor magistrates, 3 from among members of the Public Ministry of Labor, appointed by the President of the Republic, and the choice must be approved by the Federal Senate, and must be Brazilians over 35 and under 65 years of age;

(b) 10 temporary representatives of class interests (5 representing the employees and 5 representing the employers), who shall be appointed by the President of the Republic in accordance with the provisions in subsections (2) and (3) of this article.

(1) (Amended by Law No. 2244 of June 23, 1954) The chairman, the vice-chairman and the supervising official of the Tribunal and the chairmen of the divisions shall be elected from amongst the independent judicial magistrates of the Superior Labor Tribunal, in the manner laid down in the standing orders.

(2) (Amended by Law No. 2244 of June 23, 1954) For the purposes of the three-yearly appointment of the judges representing class interests, the chairman of the Superior Labor Tribunal shall publish a notice at least 15 days in advance inviting each of the higher-level industrial associations to draw up a list of three names in accordance with a majority vote of its board of representatives; such lists shall be submitted through the intermediary of the said Tribunal to the Minister of Justice within the time appointed in the notice.

(3) (Amended by Decree Law No. 9797 of Sept. 9, 1956) The list referred to in the last preceding subsection shall contain the names only of persons of Brazilian nationality by birth, of recognized ability, over twenty five years of age, who have complied with the regulations as to military service, are in possession of their civil and political rights, and have been engaged in their occupation for over two years or are acting as representatives of the occupation in accordance with the law.

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Art. 694. (Amended by Law No. 5442 of May 24, 1968) The permanent judges shall be chosen as follows: seven, from magistrates of Labor Justice; two from practicing attorneys; and two from the members of the Public Ministry of the Union attached to Labor Justice.

Art. 695. Repealed by Decree Law No. 9797 of Sept. 9, 1946.

Art. 696. (Amended by Decree Law No. 8737 of Jan. 19, 1946) If any member of the Court is absent without good cause from more than three consecutive ordinary meetings, he shall be deemed to have resigned.

(1) Repealed by Complementary Law No. 35 of Mar. 14, 1979.

(2) (Amended by Law No. 2244 of June 23, 1954) For the purposes of the preceding subsection the substitute shall be appointed from amongst the persons on the lists mentioned in subsection (2) of article 693.

Art. 697. (Amended by Law No. 6289 of Dec. 11, 1975) If the term of office of any of the judges of the Tribunal is interrupted on account of leave of absence for more than 30 days, or in the case of a vacancy, insofar as it the office has not been filled, the Ministers of the Court may appoint a substitute by means of a convocation of judges of the same category from any of the Regional Labor Courts, in the manner stipulated in the Regulation of the Superior Labor Court.


Art. 699. Nine judges in addition to the chairman shall constitute a quorum at plenary sittings of the Superior Labor Tribunal.

Sole Subsection. The divisions of the Tribunal shall consist of five judges, and three members in addition to the chairman shall constitute a quorum; it shall also be the duty of the chairman to act as reporting official or auditor in cases submitted to him, in accordance with the standing orders.

Art. 700. The Council shall meet on days fixed in advance by the chairman, who may convene extraordinary meetings whenever necessary.

Art. 701. The meetings of the Council shall be public and shall begin at two P.M. and end at five P.M.; nevertheless, in the event of manifest necessity the meetings may be prolonged by the chairman.

(1) Extraordinary meetings shall not be held unless notice has been given to the members at least twenty-four hours in advance.

(2) The proceedings at a meeting of the Council may be held "in camera", if this is decided by a majority of the members for reasons of public interest.

Division III

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Competence of the Plenary Council

Art. 702. Repealed by Law No. 7701 of December 21, 1988.

Division IV

Competence of the Chamber of Labor Justice

Art. 703-705. Repealed by Legislative Decree No. 8737 of Jan. 19, 1946.

Division V

Competence of the Chamber of Social Welfare


Division VI

Powers and Duties of the Chairman of the National Labor Council (Labor Law)

Art. 707. The Chairman of the Court shall--

(a) preside at meetings of the Court, fix the dates of ordinary meeting and summon any extraordinary meetings;

(b) supervise all the services of the Court;

(c) issue instructions and adopt measures to ensure the efficient functioning of the Court and other organs of the labor judiciary;

(d) give effect to decisions emanating from the Court by ordering the regional courts and other organs of the labor judiciary to issue and carry out the necessary writs and proceedings;

(e) submit to the Court the processes to be examined by it, and appoint, in accordance with the standing orders, a member to report on each case;

(f) determine appeals brought by parties and any other matters which it is his duty to examine;

(g) decide on any changes in the allocation of the personnel of the labor judiciary and make "ex officio" any transfers of employees as between regional courts, conciliation and arbitration boards and other organs, and likewise to grant such applications as he deems compatible with the service, without detriment to the staff requirements of each organ;

(h) grant ordinary holidays and leave of absence to the employees of the Court, and impose upon them any disciplinary penalties required which exceed the competence of the other authorities;

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(i) install members of the Court and grant ordinary holidays and leave of absence to the chairmen of regional councils;

(j) present a report on the activities of the tribunal and of the other organs of the labor judiciary to the Minister of Labor, Industry and Commerce not later than the thirty first day of March in each year.

Sole Subsection. The chairman shall have a secretary, appointed by him from among the officials assigned to the Court, and shall be assisted by employees appointed under the same conditions.

Division VII

Powers and Duties of the Vice-Chairman

Art. 708. It shall be the duty of the vice-chairman of the Tribunal--

(a) to take the place of the chairman and the supervising official if either is absent or unable to act;

(b) Repealed.

Sole Subsection. In the absence of both the chairman and the Vice-chairman, the senior judicial magistrate or, in the event of equal seniority, the eldest judicial magistrate shall preside.

Division VIII

Duties of the Supervisor

Art. 709. Duties of the supervising official of the tribunal. The Supervisor, elected among the Ministers composing the Superior Labor Court, shall be competent:

I. to carry out duties of inspection and permanent supervision in relation to the Regional Courts and their Chairmen;

II. to decide claims against acts contrary to good procedural practices by the Regional courts and their Chairmen, when a specific recourse does not exist;

III. Repealed by Law No. 5442 of May 24, 1968.

(1) Decisions made by the Supervisor, in the cases of this article, shall fall under regulatory appeal to the Plenary Court.

(2) The Supervisor shall not be a member of Court Groups, but shall participate by voting in sessions of the Plenary Court when it is not involved in correction or on holidays, although he shall neither relate nor review processes, also voting on an

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issue of constitutionality, on administrative processes and on the facts that were previously related to his office in the Supervisory.

CHAPTER VI

LABOR COURTS AUXILIARY SERVICES

Division I

Secretariats of the Conciliation and Arbitration Boards

Art. 710. Each board shall have a secretariat, which shall be under the direction of an official appointed by the chairman to act as secretary; the said official shall receive the allowances for special duties prescribed by law in addition to the salary corresponding to his grade.

Art. 711. The duties of the secretariats of the boards shall be as follows:

(a) to receive, take proceedings in connection with, forward, keep and preserve files and other papers sent to them:

(b) to keep records of the receipt and dispatch of the files and other papers;

(c) to keep a register of decisions;

(d) to inform the parties concerned and their legal advisers respecting the progress of their respective cases and to place the files at their disposal for consultation;

(e) to communicate the relevant documents to the parties in the offices of the secretariat;

(f) to compute the costs payable by the parties in their respective cases;

(g) to furnish certificates respecting the entries in the books and files of the secretariat;

(h) to take distraint and other proceedings;

(i) to perform such other duties as may he assigned to them by the chairman of the board concerned, for the better performance of the services for which it is responsible.

Art. 712. The secretary of a conciliation and arbitration board shall in particular:

(a) superintend the work of the secretariat and ensure the smooth working of the service;

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(b) carry out and cause others to carry out the orders of the chairman and of the superior authorities;

(c) submit to the chairman for examination and signature all files and papers which must be examined and signed by him;

(d) open official correspondence addressed to the board and to its chairman, and submit the said correspondence for decision by the chairman;

(e) record verbal complaints in cases of individual disputes;

(f) ensure the rapid dispatch of business, especially at the stage of enforcement proceedings, and carry out promptly all judicial commissions received from higher authorities;

(g) act as secretary at the hearings of the board and keep the minutes;

(h) sign certificates and other instruments of procedure;

(i) inform the litigants of complaints and other acts of procedure of which they must be informed and sign the relevant notifications;

(j) carry out any other duties assigned to him by the chairman of the board.

Sole Subsection. If any employee fails without good cause to carry out the acts for which he is responsible within the prescribed time limits, one day's salary shall be deducted from his remuneration in respect of every day of delay.

Division II

Allocating Clerks

Art. 713. An allocating clerk shall be appointed in localities where there is more than one conciliation and arbitration board.

Art. 714. The duties of the allocating clerk shall be as follows:

(a) to allocate to each board in turn, strictly on order of receipt, the cases submitted to him for this purpose by the persons concerned;

(b) to give a receipt to the persons concerned for each case allocated;

(c) to keep two card indexes of the cases allocated, one classified by the names of the plaintiffs and the other by the names of the defendants, both in alphabetical order;

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(d) to give information respecting the cases allocated, either orally or by a certificate in writing, to any person who makes an application for the purpose;

(e) to refrain from allocating cases when so instructed by the chairman of a board, and to keep the cards for these cases in a special card index, the particulars in which may be consulted by the persons concerned, but shall not be mentioned in certified copies.

Art. 715. The allocating clerks shall be appointed by the chairman of the regional court, from amongst the employees of the boards and the regional court in the locality concerned; they shall be directly subordinate to the chairman of the regional court.

Division III

Offices of the Justices of the Peace

Art. 716. The offices of the justices of the peace responsible for the administration of justice in labor matters shall for this purpose have the same powers and duties as are assigned by division I to the secretariats of the conciliation and arbitration boards.

Sole Subsection. In the case of courts which have more than one office, complaints shall be allocated alternately to the various offices in turn.

Art. 717. The clerks of justices of the peace responsible for the administration of justice in labor matters shall in particular have the powers and duties of the secretaries of the boards; the other employees of the offices of the courts shall have those powers and duties of the secretariats of boards, enumerated in article 711, which correspond to their respective posts.

Division IV

Secretariats of the Regional Courts

Art. 718. Each regional court shall have a secretariat, which shall be under the direction of an official appointed to act as secretary who shall receive the allowances for special duties prescribed by law.

Art. 719. The secretariat of a regional court shall have the following duties, in addition to those specified in article 711 for the secretariats of conciliation and arbitration boards:

(a) to submit the files to the chairman and, after they have been dealt with, to refer them to the respective reporting members;

(b) to compile and keep a card index of the jurisprudence of the Court for consultation by the persons concerned.

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Sole Subsection. The other duties of the secretariat, and the rules for the organization and performance of its work, shall be laid down in the standing orders of the regional court.

Art. 720. The secretaries of the regional courts shall have the duties assigned by article 712 to the secretaries of the conciliation and arbitration boards, in addition to the duties specified in the standing orders of the courts.

Division V

Court Officers

Art. 721. The court officers (oficiais de diligencia) of the labor courts shall be responsible for carrying out all measures requisite for the enforcement of the awards of the conciliation and arbitration boards and of the regional labor courts which they are instructed to carry out by the respective chairmen.

(1) For the purpose of the allocation of the said measures, each court officer shall be attached to a particular conciliation and arbitration board.

(2) In localities where there is more than one board, the duty of taking the necessary action shall be transferred to a court officer attached to another board if, on the expiration of seven days, the required action has not been carried out; and the officer originally responsible shall be liable to suspension or, if the offense is repeated, to removal.

(3) The transference of duties mentioned in the last preceding subsection shall take place in rotation, in the order in which the boards are numbered, the duties of the last board being transferred to the first board.

(4) The chairmen of regional labor courts shall have power to instruct any court officer to carry out measures for the enforcement of the decisions of these courts.

(5) Where a court officer is absent or unable to act, the chairman of a board may instruct any employee to carry out the measure required.

CHAPTER VII

PENALTIES

Division I

Lockouts and Strikes

Art. 722. (Amended by Law No. 7855 of Oct. 24, 1989) If any employer, whether individually or in conjunction with other employers, suspends work in his establishment without the previous authorization of the competent court, or contravenes, or refuses to

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carry out, a decision issued in a collective dispute, he shall be liable to the following penalties:

(a) a fine of not less than 300 nor more than 3,000 regional reference values;

(b) removal from any office of occupational representation which he may hold;

(c) suspension, for not less than two nor more than five years, of the right to be elected to any office of occupational representation.

(1) If the employer is a body corporate, the penalties mentioned under (b) and (c) shall be imposed upon the responsible managers.

(2) If the employer is a concession-holder for a public service, the penalties shall be doubled. In this case, if the concession-holder is a body corporate, the chairman of the court which issued the decision may order the responsible managers to be dismissed, on pain of cancellation of the concession, without prejudice to compliance with the decision and the application of the penalties incurred.

(3) Without Prejudice to the penalties imposed by this article, the employer shall be bound to pay the wages due to his employees during the period of suspension of work.

Art. 723. If employees leave their work, or fail to comply with a decision issued in a dispute, collectively and without the previous authorization of the competent court, they shall be liable to the following penalties:

(a) suspension from their employment for not more than six months or dismissal;

(b) removal from any office of occupational representation which the employee concerned may hold;

(c) suspension, for not less than two nor more than five years, of the right to be elected to an office of occupational representation.

Art. 724. If the suspension of work or the failure to comply with the decision of the labor court was ordered by an occupational association of employers or employees, whether an approved industrial association or not, the penalty shall be as follows:

(a) if the order is the result of a decision of the General meeting, cancellation of the registration of the association, in addition to a fine of 300 regional reference values, which shall be doubled if a public service is concerned;

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(b) if the order or incitement is attributable exclusively to the members of the management, removal from office, without prejudice to the penalty provided for in the next following article.

Art. 725. If any person, whether an employee or an employer, or even a person not connected with the categories which are parties to the dispute, incites others to commit the contraventions mentioned in this chapter, or places himself at the head of a combination of employers or employees, he shall be liable to the term of imprisonment fixed by the penal laws, without prejudice to any other penalties prescribed for the offense.

(1) In the case of a public service, or in the event of an act of violence against persons or property, the penalties laid down in this article shall be doubled.

(2) If an alien renders himself liable to the penalties prescribed by this article, he shall be deported from Brazil, in conformity with the provisions of the ordinary law, after enforcement of the penalty imposed upon him.

Division II

Penalties for Members of Labor Courts

Art. 726. (Amended by Law No. 7855 of Oct. 24, 1989) If any person refuses without good reason to perform the duties of a member of a conciliation and arbitration board or of a regional court, he shall be liable to the following penalties:

(a) if he is an employers' representative: a fine of not less than 6 nor more than 60 regional reference values and suspension of the right to represent his occupation for a period of not less than two nor more than five years;

(b) if he is an employees' representative: a fine of 6 regional reference values and suspension of the right to represent his occupation for a period of not less than two nor more than five years.

Art. 727. If any member of a conciliation and arbitration board or regional council, without sufficient reason, fails to attend three consecutive meetings, he shall be removed from office, without prejudice to the penalties laid down in the last preceding article.

Sole Subsection: If the chairman is guilty of the offense mentioned in this article he shall be removed from office and shall forfeit his salary for the days on which he failed to attend the consecutive hearings or meetings.

Art. 728. The provisions of Title XI of the Penal Code (Part XI of the Penal Code deals with crimes against the public administration.) shall apply to the chairmen, members, judges, and subordinate officials of the labor courts,

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DIVISION III

Other Penalties

Art. 729. (Amended by Law No. 7855 of Oct. 24, 1989) If an employer fails to carry out an enforceable decision respecting the readmission or reinstatement of an employee, he shall be liable, in addition to payment of the wages of the employee concerned to a fine of not less than three -fifths nor more than 3 regional reference values per day, until the decision is carried out.

(1) If any employer prevents or endeavors to prevent an employee from serving as member of a labor court, or from giving evidence before a labor court, he shall be liable to a fine of not less than 30 nor more than 300 regional reference values.

(2) If any employer dismisses an employee because he has served as a member of a labor court or gives evidence before a labor court, he shall be liable to the penalty prescribed in the preceding subsection, without prejudice to the compensation prescribed by law.

Art. 730. (Amended by Law No. 7855 of Oct. 24, 1989) If any person, without sufficient reason, refuses to testify as a witness, he shall be liable to a fine of not less than 3 nor more than 30 regional reference values.

Art. 731. If any person who has submitted a complaint to the allocating clerk orally fails to appear before the board or justice of the peace, within the time limit specified in the sole subsection of sec. 786, in order to have the complaint recorded, he shall forfeit for a period of 6 months the right to lay a complaint before the labor courts.

Art. 732, The plaintiff shall be liable to the penalty specified in the last preceding article if on two consecutive occasions he gives cause for the filing of the case under article 844.

Art. 733. (Amended by Law No. 7855 of Oct. 24, 1989) Contraventions of the provisions of this Title for which a penalty is not expressly prescribed shall be punished by a fine of not less than 3 nor more than 300 regional reference values; in the event of a repetition of the offense, the fine shall be doubled.

CHAPTER VIII

GENERAL PROVISIONS

Art. 734. Repealed by Decree-Law No. 72 of Nov. 21, 1966.

Art. 735. Public administrative departments and industrial associations shall be bound to furnish the labor judges, the labor courts and the Labor Courts Law Office with the information and particulars necessary for the examination and judgment of the cases submitted to them.

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Sole Subsection. Refusal by a public official to furnish the said information and particulars shall entail the application of the penalties for disobedience prescribed by the Rules for the Conditions of Service of Public Officials.

TITLE IX

PUBLIC LABOR MINISTRY

CHAPTER I

GENERAL PROVISIONS

Art. 736. The Public Labor Ministry (Ministerio Publico do Trabalho) shall be composed of officials directly subordinate to the Executive; it shall be responsible for the strict observance of the Federal Constitution and of Acts and other measures enacted by the public authorities, within the sphere of its powers and duties.

Sole Subsection. In the performance of its duties the Public Labor Ministry shall be governed by the provisions of this Consolidation, and, in matters not expressly provided for therein, by the rules governing the Federal Public Prosecutor's Department.

Art. 737. The Public Labor Ministry (Ministerio Publico do Trabalho) shall consist of the Labor Courts Law Office (Procuradoria de Justica do Trabalho) and the Social Welfare Law Office (Procuradoria da Previdencia Social), the former Office acting as a coordinating body between the labor courts system and the Ministry of Labor, Industry and Commerce, while both offices shall be directly subordinated to the Minister of State.

Art. 738. Repealed by Legislative Decree No. 8024 of Oct. 1, 1945.

Art. 739. The principal law officers (procurador geral) and the law officers shall not be bound to record the time of their arrival on duty.

CHAPTER II

LABOR COURTS LAW OFFICE

Division I

Organization

Art. 740. (Amended by Law No. 8470 of Oct. 5, 1992) The Labor Courts Law Office (Procuradoria de Justica do Trabalho) shall consist of:

(a) an Attorney General, who shall be attached to the Superior Labor Court;

(b) 24 regional attorneys, who shall be attached to the regional labor courts.

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Art. 741. The regional law offices shall be directly subordinate to the Principal Law Officer (procurador geral) :

Art. 742. The General Law Office shall be composed of a Principal Law Officer and law officers.

Sole Subsection. The regional law offices shall consist of a regional law officer assisted where necessary by assistant law officers.

Art. 743. In each regional law office there shall be a substitute for the assistant law officer or, if there is no assistant, a substitute for the regional law officer; the substitute shall be appointed in advance by a Decree of the President of the Republic, without cost to the public treasury.

(1) The substitute shall take up office before the regional law officer concerned, who shall be the authority competent to convene him.

(2) If the regional law officer is absent or unable to act, his place shall be taken by the assistant law officer (or if there is more than one assistant law officer, by the one designated by the regional law officer).

(3) If the assistant law officer is absent or unable to act, his place shall be taken by the substitute law officer.

(4) If a substitute fails to attend when summoned, he shall be automatically removed from office, unless the failure was due to illness duly proved.

(5) The substitute shall not be entitled to any rights or advantages other than the salary of the post, which shall be payable only during the substitution.

Art. 744. The Principal Law Officer shall be appointed from amongst persons who are bachelors of the legal and social sciences and have held for not less than five years an office in the magistracy or the public prosecutor's office or have practiced as an advocate for that period.

Art. 745. The other law officers shall satisfy the requirements laid down in the last preceding article, provided that the period of practice of the profession shall be reduced to not less than two years.

Division II

Competence of the General Law Office

Art. 746. The duties of the General Law Office shall be--

(a) to deal in writing with all cases and questions relating to labor which are within the competence of the Superior Labor Court;

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(b) to attend the meetings of the said Court, give verbal opinions on the matters discussed and ask for any requisitions and proceedings which seem to it appropriate, having the right to examine the relevant documents whenever a new question arises which has not been dealt with in the opinion given;

(c) to ask for meetings of the Court to be prolonged where such action is required in order that the case may be determined;

(d) to certify the decisions of the Court, through the intermediary of the Principal Law Officer;

(e) to take any legal steps and make any inquiries requested by the Court;

(f) to appeal against decisions of the Court in the cases specified by law;

(g) to apply to the competent court for recovery by distraint of fines imposed by the labor administrative and judicial authorities;

(h) to bring complaints before the competent authorities against persons who fail to comply with decisions of the Court;

(i) to furnish the authorities of the Ministry of Labor, Industry and Commerce with any information requested concerning disputes submitted to the Court, and to forward to the competent bodies certified copies of decisions with which they are required to conform or comply;

(j) to apply to any authorities whatsoever for any inquiries, expert examinations, proceedings, certificates and explanations which may be necessary for the performance of its duties;

(l) to defend the competence of the labor courts;

(m) to raise questions of jurisdiction,

Division III

Competence of the Regional Law Offices

Art. 747. The regional law offices shall perform the duties specified in the last preceding article, within the jurisdiction of the respective regional councils.

Division IV

Powers and duties of the Principal Law Officer

Art. 748. The duties of the Principal Law Officer, as head of the General Labor Courts Law Office, shall be as follows:

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(a) to direct the services of the General Law Office and to guide and supervise the regional law offices, issuing any necessary instruction;

(b) to attend the meetings of the Superior Labor Court, either in person or through a law officer appointed by him;

(c) to certify decisions of the Court;

(d) to appoint a law officer to replace him if he is absent or prevented from acting, and to appoint the secretary of the General Law Office;

(e) to submit to the Minister of Labor, Industry and Commerce, not later than the thirty-first day of March, a report on the work of the General Law Office during the preceding year together with any remarks or suggestions which he may consider appropriate;

(f) to grant holidays to law officers and other officials of the General Law Office and impose disciplinary penalties upon them (in the case of law officers, in conformity with the laws applicable to the Federal Law Office);

(g) to appear in first instance Proceedings or appoint law officers for the purpose;

(h) to engage and dismiss supernumerary staff for the secretariat and to extend the paid working hours of officials and supernumerary employees.

Division V

Powers and Duties of the Law Officers

Art. 749. The duties of the law officers attached to the General Law Office shall be as follows:

(a) to attend the meetings of the Superior Labor Court, as and when appointed by the Principal Law Officer;

(b) to perform any other duties which may be assigned to them by the Principal Law Officer.

Sole Subsection. In connection with the cases in which they appear, the law officers shall have the right to request the Principal Law Officer to take any legal steps or make any investigations which may be necessary.

Division VI

Powers and Duties of the Regional Law Officers

Art. 750. The duties of a regional law officer shall be as follows:

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(a) to direct the services of the regional law office:

(b) to attend the meetings of the regional Court, either in person or through an assistant law officer appointed by him;

(c) to submit to the Principal Law Officer every six months a report on the work of the law office concerned, together with data and information respecting the administration of justice in labor matters in the region;

(d) to request the administrative or judicial authorities to take any legal steps necessary for carrying out measures ordered by the Principal Law Officer, and to supervise the execution thereof;

(e) to supply the Principal Law Officer with the necessary information respecting cases in progress, and to consult him in case of doubt;

(f) to appear in court at the seat of the regional court;

(g) to certify awards of the court;

(h) to appoint a law officer to replace him if he is absent or prevented from acting, and to appoint the secretary of the law office.

Art. 751. The duties of an assistant regional law officer shall be--

(a) to attend the meetings of the regional court, as and when appointed by the regional law officer;

(b) to perform any other duties which may be assigned to him by the regional law officer.

Division VII

Secretariat

Art. 752. The secretariat of The General Law Office shall work under the direction of a head appointed by the Principal Law Officer and shall have the staff appointed by the Minister of Labor, Industry and Commerce

Art. 753. The duties of the Secretariat shall be as follows:

(a) to receive, register and send on the files or documents received;

(b) to classify and file the opinions and other documents;

(c) to furnish information respecting cases or documents submitted to the Law Office for its opinion;

(d) to perform the clerical work of the Law Office;

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(e) to procure the necessary office supplies;

(f) to perform any other duties which may be assigned to it by the Principal Law Officer for the better carrying out of the services for which he is responsible.

Art. 754. In the regional law offices the work specified in the last preceding article shall be performed by the officials appointed for the purpose.

CHAPTER III

SOCIAL WELFARE LAW OFFICE

Division I

Organization

Art. 755-. Art. 762. Repealed by Decree Law No. 72 of Nov. 21, 1966.

TITLE X

LABOR JUDICIAL PROCEDURE

CHAPTER I

PRELIMINARY PROVISIONS

Art. 763. The procedure in the labor courts with respect to individual and collective disputes and the imposition of penalties shall be governed throughout the whole of Brazilian territory by the rules laid down in this Title.

Art. 764. All disputes, whether individual or collective, which are referred to a labor court shall be submitted to conciliation proceedings.

(1) For the purposes of this article the labor judges and courts shall always endeavor to persuade the parties to accept a settlement of the dispute by conciliation.

(2) In the event of failure to reach an agreement, the conciliation proceedings shall be converted into arbitration proceedings, and a decision shall be issued in the manner prescribed in this Title.

(3) Even after the termination of the conciliation proceedings, the parties shall be entitled to conclude an agreement, which shall close the case.

Art. 765. The labor courts and judges shall have full discretion in the conduct of proceedings; they shall take care that proceedings are expedited and may take any measures which may be necessary to elucidate the facts.

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Art. 766. In disputes relating to the fixing of wages, the terms of settlement shall be such as to ensure both a fair wage for the employees and a fair return to the undertakings concerned.

Art. 767. The setting off of accounts or a lien shall not be called for except as means of defense.

Art. 768. A dispute in which the decision must be enforced before the bankruptcy court shall be given priority at all stages in the proceedings.

Art. 769. In cases not expressly provided for, the ordinary law respecting procedure shall apply subsidiarily in procedure in labor matters, except in so far as it is incompatible with the provisions of this Title.

CHAPTER II

PROCEDURE IN GENERAL

Division I

Instruments, Records and Time Limits

Art. 770. Instruments of procedure shall be published, except where this is contrary to the public interest, and shall be put into effect on working days between 6 A.M. and 8 P.M.

Sole Subsection. Distraint proceedings may be effected on Sunday or a public holiday, subject to the express permission of the judge or chairman.

Art. 771. Instruments and records may be written in ink, typewritten or stamped.

Art. 772. Instruments and records, which must be signed by the parties concerned, shall be signed by another person in the presence of two witnesses at the request of the parties, if for a sufficient reason the parties are unable to sign and there is no lawfully appointed legal representative.

Art. 773. Records relating to the various stages in proceedings shall be kept in the form of notes, dated and initialed by the secretaries or clerks.

Art. 774. In the absence of any provision to the contrary, the time limits specified in this Title shall be reckoned from the date on which notice is given verbally or in writing, from the date on which the notice is published in the official gazette or the gazette publishing the order of the labor court or from the date on which the notice is posted up at the place where the board, court or tribunal sits (whichever date is appropriate).

Sole Subsection. If notification is given by post and the addressee fails to receive or refuses to accept the notification, the postal authorities shall be bound to return it to the court from which it was dispatched within forty-eight hours, and the appropriate post office official shall be legally responsible therefor.

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Art. 775. The time limits specified in this Title shall be exclusive of the day upon which they begin but inclusive of the day upon which they expire; they shall be continuous and not subject to prolongation, but may be extended by the judge or court for such time as is strictly necessary or in a case of "force majeure" duly proved.

Sole Subsection. Time limits which expire on a Saturday, Sunday or holiday shall end on the first working day thereafter.

Art. 776. The expiry of the time limits shall be certified by an entry made in the file by the clerk or secretary.

Art. 777. The applications and documents submitted, the instruments and records, the appeal petitions or statements of grounds for appeal, and any other papers relating to a case shall constitute the file of the case, which shall be kept under the responsibility of the clerk or secretary.

Art. 778. The file of a labor court case shall not be removed from the office or secretariat except when it must be transmitted to the competent bodies in the event of appeal or requisition.

Art. 779. The parties or their agents shall have complete freedom to consult the documents in the offices or secretariats.

Art. 780. The documents in the file of a case shall not be removed until after the conclusion of the case; a copy must be left in the file.

Art. 781. The parties may request the issue of certificates with respect to cases in progress or filed; the certificates shall be issued by the clerk or secretary.

Sole Subsection. Certificates of cases heard "in camera" shall not be issued without an order of the judge or chairman.

Art. 782. Complaints, objections, requests, instruments or procedure, and documents connected with the labor courts shall be exempt from stamp duty.

Division II

Allocation of Cases

Art. 783. Complaints shall be allocated to the conciliation and arbitration boards or the justices of the peace, in the cases specified in subsection (1) of article 669, strictly in order of submission to the allocating clerk (if any).

Art. 784. Complaints shall be registered in a special book, endorsed on every page by the authority to which the allocating clerk is subordinate.

Art. 785. The allocating clerk shall issue a receipt to the person concerned, containing the names of the plaintiff and the defendant, the date of allocation, the object of the complaint and the board or justice of the peace to which it is allocated.

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Art. 786. An oral complaint shall be allocated before it is recorded in writing.

Sole Subsection. When an oral complaint has been allocated, the plaintiff shall be bound, except in cases of "force majeure", to report at the office or secretariat, within a time limit of five days, in order to record the complaint in writing; failure to do so shall entail the penalty specified in article 731.

Art. 787. A complaint in writing shall be submitted in duplicate, and shall be accompanied by the documents on which it is based.

Art. 788. After it has been allocated, the complaint shall be transmitted by the allocating clerk to the competent board or court, accompanied by the allocation notice.

Division III

Costs

Art. 789. Costs in labor disputes. In individual or collective labor disputes, until judgment, the costs shall be calculated progressively, in accordance with the following table:

I. up to once the regional reference value, 10%;

II. from the limit of item I up to twice the regional reference value, 8%;

III. from twice the regional reference value up to five times that value, 6%;

IV. from five times the regional reference value up to ten times that value, 4%;

V. exceeding ten times the regional reference value, 2%.

(1) For the boards, the Regional Courts and the Superior Labor Court, the payment of the costs shall be made in the manner of the instructions issued by the Superior Labor Court. For Justices of the Peace the amount of the costs shall be divided proportionally between the justice and the officials who have presided over the act, except the distributors, whose costs shall be paid in the act of agreement with the local administration.

(2) The division to which subsection (1) refers, the enforcement costs and transfer fees and fees for instruments shall be determined by tables issued by the Superior Labor Court.

(3) The costs shall be calculated:

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(a) in the case of an agreement or conviction, on the respective amount;

(b) in the case of abandonment or filing, on the amount of the request;

(c) in the case of an undetermined amount, on that which the presiding judge or the judge shall establish;

(d) in the case of an inquiry, on six times the monthly wage of the claimant or claimants.

(4) The costs shall be paid by the defeated party, after the decision has been passed down in judgment or, in the case of an appeal, within five days from its filing date, under penalty of desertion, except in the case of an inquiry, in which case the enterprise shall pay the costs, before its judgment by the Board or Justice of the Peace.

(5) Transfer fees and fees for instruments shall be paid within 48 hours after their extraction, nevertheless a prior deposit of the amount estimated by the official in charge thereof shall be made, subject to supplementation, the party being informed, under penalty of desertion.

(6) Provided that other arrangements were not made in an agreement, the parties to the case shall bear the costs thereof in equal portions.

(7) In the case of a unionized employee who has not obtained the benefit of gratuitous justice, or exemption from costs, the union that had intervened in the process shall be jointly and severally liable for the costs due.

(8) In the case of non-payment of costs, the respective amount shall be collected in accordance with the process established in Chapter V of this Title.

(9) The chairmen of Labor Courts are authorized to concede the benefit of gratuitous justice ex officio, including transfers and instruments, in the case of those who receive wages less than or equal to double the legal minimum wage or prove their estate of poverty.

Art. 790. Costs in the case of collective disputes. In the cases of collective disputes, the parties losing the case shall be jointly and severally liable for the payment of the costs, calculated on the amount arbitrated by the chairman of the Court.

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Division IV

Parties and Their Representatives

Art. 791. Employers and employees may submit their claims in person before the labor courts and may continue their claims until the final decision.

(1) In individual disputes employers or employees may cause themselves to be represented by an industrial association, or an advocate, solicitor or authorized pleader registered in the Order of Brazilian Advocates.

(2) In collective disputes the parties may be assisted by an advocate.

Art. 792. Young persons over eighteen but under twenty-one years of age and married women may sue and be sued before the-labor courts without the assistance of their parents, guardian or husband.

Art. 793. In the case of young persons over fourteen but under eighteen years of age, complaints may be laid by their legal representatives or, in default of a legal representative, by the labor courts law office. In places where there is no such law office, the judge or chairman shall appoint a competent person to perform the duties of guardian for the conduct of the case.

Division V

Nullity

Art. 794. In cases subject to the jurisdiction of the labor courts a decision of nullity shall not be issued unless the defective proceedings entail manifest prejudice upon the litigants.

Art. 795. A decision of nullity shall not be issued except upon an application made by the parties, who must claim nullity on the first occasion when they have to speak at a hearing or in the preliminary proceedings.

(1) Nullity on the ground of the incompetence or the court shall be declared "ex officio". In this case the decision shall be deemed to be null and void.

(2) If a judge or court declares himself or itself to be incompetent, he or it shall at the same time order the case to be transmitted promptly to the competent authority and shall give reasons for his decision.

Art. 796. Nullity shall not be declared:

(a) if it is possible to rectify the defect or repeat the proceedings;

(b) if it is claimed by the person who was responsible for it.

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Art. 797. The judge or court who or which declares the nullity of any proceedings shall specify the proceedings covered by the declaration of nullity.

Art. 798. The nullity of any proceedings shall affect exclusively subsequent actions which are dependent or consequent upon the proceedings in question.

Division VI

Demurrers

Art. 799. In cases within the jurisdiction of the labor courts, demurrers with stay shall not be admitted except on the ground or disqualification or incompetence.

(1) Other demurrers shall be entered as part of the defense.

(2) No appeal shall lie against decisions respecting demurrers on the ground of disqualification or incompetence except where, in the latter case, the decision puts an end to the action; but the parties may enter the demurrers again in an appeal from the final decision.

Art. 800. When a demurrer is entered on the ground of incompetence, the documents shall be made available for examination for a peremptory time limit of twenty-four hours, and the decision shall be given at the first hearing or sitting thereafter.

Art. 801. A judge, chairman or member shall be bound to declare himself disqualified and may be challenged for any one or the following reasons in relation to the litigants:

(a) personal enmity;

(b) intimate friendship;

(c) relationship by blood or marriage to the third civil degree inclusive;

(d) special interest in the case.

Sole Subsection. If the challenger has taken any proceedings by which he has accepted the judge, he shall not be entitled subsequently to enter a demurrer on the ground of disqualification unless fresh grounds arise. Further, disqualification shall not be admitted if it is found in the course or the case that the challenger failed to enter a demurrer on that ground at an earlier stage, though he was aware of the disqualification, or that he accepted the judge who is challenged after becoming aware of the disqualification, or finally that he willfully brought about the reason for the disqualification.

Art. 802. When a demurrer is entered on the ground of disqualification, the judge or court shall appoint a hearing within forty-eight hours for the purpose of examining the demurrer and giving a decision thereon.

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(1) In the conciliation and arbitration boards and the regional councils, if a demurrer on the ground of disqualification is allowed, the substitute for the disqualified member shall be convened for the same or the next hearing or sitting and shall continue to act in the case until the final decision. If any member declares himself to be disqualified, the same procedure shall be followed.

(2) If a justice of the peace is disqualified, he shall be replaced in the manner provided for in the local judiciary system.

Division VII

Conflict of Jurisdiction

Art. 803. Conflicts of jurisdiction may arise between:

(a) conciliation and arbitration boards and justices of the peace empowered to act in the administration of Labor Justice;

(b) regional labor councils;

(c) labor courts and ordinary courts;

(d) Repealed by Decree-Law No. 8737 of Jan. 19, 1946.

Art. 804. A conflict of jurisdiction shall arise:

(a) when both authorities claim competence;

(b) when both authorities disclaim competence.

Art. 805. A conflict of jurisdiction may be raised:

(a) by the labor judges and courts;

(b) by the principal law officer or the regional law officers of the labor courts;

(c) by the party concerned or his representative.

Art. 806. It shall not be lawful for a party to raise a conflict of jurisdiction if he has already entered a demurrer on the ground of incompetence.

Art. 807. When raising a conflict of jurisdiction, the party concerned must prove that such conflict exists.

Art. 808. (Amended by Decree Law No. 6353 of March 20, 1944) Cases of conflict of jurisdiction under article 803 shall be settled as follows:

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(a) between boards or between justices of the peace, or between a board and a justice of the peace: by the regional councils in their respective regions;

(b) between regional councils or between boards and justices of the peace under the jurisdiction of different regional councils: by the Labor Courts Chamber;

(c) Repealed by Decree Law No. 9797 of Sept. 9, 1946.

(d) between the labor courts authorities and the ordinary judicial authorities: by the Federal Supreme Court.

Art. 809. The following rules shall be observed in a conflict of jurisdiction between a board and a justice of the peace:

I. The judge or chairman shall cause the evidence of the conflict of jurisdiction to be extracted from the file and shall transmit the case thus formed with his report to the chairman of the competent regional council as soon as possible.

II. As soon as the file has been received by the regional council, the chairman shall decide respecting its allocation, and the reporting member may at once order the board or justice of the peace, in the case of a dispute where competence is claimed by both parties, to stay the proceedings in the case, and may at the same time request any information which he considers necessary. The law office shall then be heard, after which the reporting member shall submit the case for decision at the first meeting of the council.

III. When a decision has been given, it shall be communicated forthwith to the conflicting authorities, and the case shall continue in the court found competent,

Art. 810. The rules laid down in the last preceding article shall apply to a conflict of jurisdiction between regional councils.

Art. 811. In a conflict of jurisdiction in a labor matter between the labor court authorities and the ordinary courts, the file, prepared in conformity with sub-paragraph I of article 809, shall be transmitted directly to the chairman of the Federal Supreme Court.

Art. 812. Repealed by Decree Law No. 9797 of Sept. 9, 1946.

Division VIII

Hearings

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Art. 813. The hearings in the labor courts shall be public and shall be held at the seat of the court on working days at a time fixed in advance, between 8 A.M. and 6 P.M.; the hearings shall not last for more than five consecutive hours, except in urgent cases.

(1) In special cases another place may be appointed for the hearings by means of a public notice posted up at the seat of the court, not less than twenty-four hours in advance.

(2) Whenever necessary, extraordinary hearing may be convened subject to observance of the time limit specified in the preceding subsection.

Art. 814. The clerks or secretaries shall be present at the hearings and shall be in their places before the hearing begins.

Art. 815. At the time fixed the judge or chairman shall declare the hearing open, and the secretary or clerk shall call the parties, witnesses and other persons who are to appear.

Sole Subsection. If the judge or chairman rail to appear within fifteen minutes of the time fixed, the persons present may withdraw, and a note of the incident shall be made in the register of hearings.

Art. 816. The judge or chairman shall keep order at the hearings and may order any person who disturbs the hearing to withdraw from the court.

Art. 817. The register of the hearings shall be kept in a special book; each register shall contain particulars of the cases heard and the settlement of each, and of any relevant incidents.

Sole Subsection. Certified copies of entries in the register of hearings may be issued to persons who make an application for the purpose.

Division IX

Evidence

Art. 818. Evidence in support of allegations must be furnished by the party making them.

Art. 819. The statements and evidence of parties and witnesses who cannot speak Portuguese shall be taken through an interpreter appointed by the judge or chairman.

(1) The procedure specified in this article shall be followed in the case of deaf and dumb or dumb persons who cannot write.

(2) In both the cases covered by this article, the expenses shall be defrayed by the party in whose interest the statement or evidence is taken.

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Art. 820. The parties and the witnesses shall be examined by the judge or chairman and may be cross-examined through the judge or chairman at the request of the members, the parties, or the representatives or advocates of the parties.

Art. 821. Each of the parties shall be entitled to call not more than three witnesses, except in the case of an inquiry, when the number of witnesses may be increased to six.

Art. 822. Deductions shall not be made from the wages of witnesses on account of absence from work due to their appearance to give evidence, provided that they were duly entered on the lists or summoned.

Art. 823. If the witness is a civil or military official, and is called upon to give evidence during his hours of service, a request shall be sent to his superior officer for his appearance at a specified hearing.

Art. 824. The judge or chairman shall ensure that the evidence of a witness is not heard by the other witnesses who have to give evidence in the case.

Art. 825. The witnesses shall appear at the hearing without the service of a notice or summons.

Sole Subsection. If a witness fails to appear, then a summons shall be served upon him, "ex officio" or at the request of the party concerned, and he shall be liable to be brought by force, in addition to the penalties specified in article 730, if without sufficient reason he fails to comply with the summons.


Art. 827. The judge or chairman may examine the sworn experts or the specialists, and shall endorse the opinion given by the former for the purpose of its addition to the file in the case.

Art. 828. Every witness, before taking the statutory oath, shall give the following personal particulars, viz., name, nationality, occupation, age, address, and in the case of an employee the period of employment with his employer; he shall be subject to the penal laws, if he makes any false statement.

Sole Subsection. A summary of the evidence of the witnesses shall be made at the hearing by the secretary of the board or the official appointed for the purpose; it shall be signed by the chairman of the court and by the witnesses concerned.

Art. 829. A witness who is a relative to the third civil degree, an intimate friend, or an enemy of and of the parties shall not take the oath and his statement shall be of value exclusively for purposes of information.

Art. 830. A document offered as evidence shall not be accepted unless it is either the original document or a certified copy or the public instrument or copy has been checked before the judge or court.

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Division X

Decision and Effect Thereof

Art. 831. (Amended by Decree Law No. 10.035 of Oct. 25, 2000) If the parties reject the conciliation proposals, a decision shall be issued.

Sole Subsection. In the case of conciliation, the terms agreed upon shall be deemed to have the force of a decision not subject to appeal, except for Social Security contributions that are due.

Art. 832. (Amended by Decree Law No. 10.035 of Oct. 25, 2000) The decision shall give the names of the parties, a summary of the demands and of the defense, an evaluation of the evidence, the grounds for the decision and the final conclusion.

(1) If the decision grants the demands, it shall specify the time limit and the conditions for compliance therewith.

(2) The decision shall always specify the costs to be paid by the losing party.

(3) Cognitive or ratifying decisions must always indicate the juridical nature of the certified portions of the sentence or ratified agreement, including the limit of liability of each party for the collection of the social security contribution, if applicable.

(4) The Social Security Department shall be summoned, via mail, concerning ratified decisions of agreements that contain partial indemnification, and shall be allowed to enter an appeal relative to the contributions that are due.

.

Art. 833. If the decision contains obvious clerical or typing mistakes or errors of calculation, the said mistakes or errors may be rectified, before the decision is carried out, either "ex officio" or at the request of the parties concerned or of the labor courts law office.

Art. 834. Except in the cases specified in this Consolidation, a decision shall be deemed to have been published and served upon the litigants or their employers at the hearing at which it was given.

Art. 835. The agreement or decision shall be complied with within the prescribed time limit and under the prescribed conditions.

Art. 836. Hearing of cases which have already been decided. The organs of Labor Justice are forbidden to hear cases that have already been decided, except in the events expressly provided in this Title and in the case of an annulment action, that shall be admitted in the manner provided in Chapter IV of Title IX of Law No. 5869 of January

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11, 1973, Code of Civil Procedure, exempting the deposit referred to in articles 488, item II and 494 of that Code.

CHAPTER III

INDIVIDUAL DISPUTES

Division I

Form of Complaint and of Serving of Notice

Art. 837. In localities where there is only one conciliation and arbitration board or one civil court clerk complaints shall be submitted directly to the secretariat of the board or the office of the justice of the peace.

Art. 838. In localities where there is more than one board or more than one justice of the peace or civil court clerk, the complaint shall be allocated in the first place in the manner specified in Chapter II, Division II, of this Title.

Art. 839. The complaint may be submitted--

(a) by the employers or employees personally or by their legal representatives or by industrial associations;

(b) through the regional labor courts law offices.

Art. 840. Complaints may be submitted either orally or in writing.

(1) If the complaint is submitted in writing, it shall contain the following particulars, viz., the name of the chairman of the board or of the justice of the peace to whom it is addressed, the names of the plaintiff and the defendant, a brief statement of the facts giving rise to the dispute, the demand, the date and the signature of the plaintiff or his representative.

(2) If the complaint is submitted orally, it shall be recorded in writing in duplicate and dated and signed by the clerk or secretary; the provisions of the preceding subsection shall be complied with, where applicable.

Art. 841. When the complaint has been received and registered, the clerk or secretary shall within forty-eight hours forward the second copy of the complaint or the record to the defendant, and at the same time shall summon him to appear at the first court hearing vacant on the list after the expiry of five days.

(1) The notice shall be served by registered letter exempt from postal charges. If the defendant refuses to accept delivery of the letter or cannot be found, the notice shall be served on him by a public notice published in the official gazette or the gazette in which the notices of the law-courts are published or in default shall be posted up at the office of the board or justice of the peace.

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(2) The plaintiff shall be notified at the time of the submission of the complaint or in the manner specified in the preceding sub-paragraph

Art. 842. If two or more complaints are submitted with reference to the same matter by employees in the same undertaking or establishment, they may be consolidated in a single case.

Division II

Arbitration Hearing

Art. 843. The plaintiff and the defendant must be present at the arbitration hearing personally, independently of the appearance of their representatives, except in cases of plural claims or Ex-Contractor Actions, where the employees may be represented by the industrial association of their category.

(1) The employer shall be entitled to cause himself to be represented by the manager or any other employee who knows the facts of the case; their statements shall be binding upon their principal.

(2) If the employee is unable to appear personally on account of illness or some other sufficient reason duly proved, he shall be entitled to cause himself to be represented by another employee belonging to the same occupation or by his industrial association.

Art. 844. If the plaintiff fails to attend the hearing, the case shall be struck off the list, and if the defendant fails to attend judgment shall be given by default, and the failure to attend shall he deemed to be an admission of the facts alleged.

Sole Subsection. If there is a good and sufficient reason for failure to attend the hearing, the chairman may suspend judgment and appoint a fresh date for the case.

Art. 845. The plaintiff and the defendant shall appear at the hearing accompanied by their witnesses, and they shall then submit any further evidence in their possession.

Art. 846. (Amended by Law No. 9022 of April 5, 1995, published and effective on April 6, 1995) Upon opening the hearing, the judge or the chairman shall propose conciliation.

(1) (Added by Law No. 9022 of April 5, 1995, published and effective on April 6, 1995) If an agreement is drawn up and signed by the chairman and the litigants, the time limit and other conditions for compliance shall be mentioned therein.

(2) (Added by Law No. 9022 of April 5, 1995, published and effective on April 6, 1995) Among the conditions to which the preceding paragraph refers, may be one which establishes that a party who does not comply with the agreement shall be obligated to fully satisfy the claim or pay a conventional indemnity, without prejudice to fulfillment of the agreement.

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Art. 847. On the termination of the case for the defense, the judge or chairman shall make proposals for conciliation.

(1) If an agreement is arrived at, a record thereof shall be drawn up and signed by the chairman and the litigants; it shall mention the time limit and other conditions for compliance with the agreement.

(2) The conditions mentioned in the preceding subsection may include a stipulation that any party who fails to carry out the agreement shall be bound to satisfy the claim in full or to pay agreed compensation, without prejudice to the carrying out of the agreement.

(Amended by Law No. 9022 of April 5, 1995, published and effective on April 6, 1995) If an agreement has not been reached, the defendant shall have twenty minutes to adduce his defense, after the reading of the claim, when this was not dispensed of by either of the parties.

Art. 848. In the event of failure to arrive at an agreement, the hearing of the case shall continue, and the chairman shall be entitled to examine the litigants "ex officio" or at the request of any member.

(1) Upon the termination of the examination, any of the litigants may withdraw and the hearing of the case continue in the presence of his representative.

(2) The witnesses, experts and specialists (if any) shall then be heard.

Art. 849. Arbitration hearings shall be continuous; nevertheless, if for reasons of "force majeure" it is impossible to terminate the hearing on the same day, the judge or chairman shall order it to be continued on the first free day, without a fresh notice.

Art. 850. On the conclusion of the examination of the case, the parties may submit their concluding arguments and shall each be allowed not more than ten minutes for this purpose. The judge or chairman shall then renew his conciliation proposals: if they are rejected, a decision shall be given.

Sole Subsection. After proposing a settlement of the dispute, the chairman of the board shall take the votes of the members, and if they are not unanimous may give a casting vote or give the decision which is best calculated to comply with the law, maintain a fair balance between the different votes cast, and take into account the interests of the community.

Art. 851. The examination of the case and the arbitration proceedings shall be summarized in a record, which shall contain the full text of the decision.

(1) In cases within the exclusive competence of the boards, the president may determine that oral evidence need not be recorded, but the conclusions of the court, as to the facts shall always be entered in the record.

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(2) Within a maximum time limit of forty-eight hours of living judgment, the record, duly signed shall be attached to the file of the case by the chairman or justice of the peace, and signed by the members present at the giving of judgment.

Art. 852. The decision shall be communicated to the litigants, either personally or through their representatives, at the hearing. In the event of default, it shall be served in the manner laid down in subsection (1) of article 841.

Division IIA

Summary Procedure (Added by Decree Law No. 9.957 of Jan. 12, 2000)

Art. 852A. (Added by Decree Law No. 9.957 of Jan. 12, 2000) Individual wage agreements whose value does not exceed 40 times the minimum wage effective on the date of the registration of the complaint shall be subject to summary procedure.

Sole Paragraph. Claims in which the Public Administration is a direct, autarkical and basic party shall be excluded from the summary procedure.

Art. 852B. (Added by Decree Law No. 9.957 of Jan. 12, 2000) In claims to be tried in summary procedure:

I. the petition must be certain or determined and shall indicate the corresponding value;

II. Summons will not be made by announcement, the correct indication of the name and address of the defendant being assigned to the author;

III. The appraisal of the complaint must occur in a maximum period of 15 days of its registration, possibly by special agenda, if necessary, in accordance with the judicial movement of the Board of Conciliation and Judgment.

Paragraph 1. If the claimant does not comply with the provisions of items I and II of this article, the claim shall be archived and the claimant shall be sentenced to the payment of the costs on the value of the case.

Paragraph 2. The parties and attorneys shall communicate any address changes occurring during the course of the process, the summons being considered effective if sent to the place previously indicated, in the absence of any communication.

Art. 852C. (Added by Decree Law No. 9.957 of Jan. 12, 2000) Claims subject to summary judgment shall be instructed and judged in a single hearing, under the direction of a presiding or deputy judge, who may be summoned to act in conference with the presiding judge.

Art. 852D. (Added by Decree Law No. 9.957 of Jan. 12, 2000) The judge shall direct the process with liberty to determine the evidence to be produced, the burden of proof of

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each litigant being considered, possibly limiting or excluding evidence considered excessive, impertinent or delaying, as well as to appraise the evidence and to give special value to the rules of common or technical experience.

Art. 852E. (Added by Decree Law No. 9.957 of Jan. 12, 2000) Upon opening the session, the judge shall clarify to the parties present the advantages of conciliation and use adequate means of persuasion for a conciliatory solution of the litigation, in any phase of the hearing.

Art. 852F. (Added by Decree Law No. 9.957 of Jan. 12, 2000) The essential actions, fundamental statements of the parties and concisely useful information to the solution of the case brought by the testimonial evidence shall be recorded in the record of the hearing.

Art. 852G. (Added by Decree Law No. 9.957 of Jan. 12, 2000) All incidents and exceptions that may interfere in the pursuit of the hearing and of the process shall be resolved de jure. Other questions shall be resolved in the judgment.

Art. 852H. (Added by Decree Law No. 9.957 of Jan. 12, 2000) All evidence shall be produced in the instruction and judgment hearing, even that which was not previously required.

Paragraph 1. The contrary party will immediately be heard on the documents presented by the other party, without interruption of the hearing, unless it is an absolute impossibility, in the criterion of the judge.

Paragraph 2. The witnesses, up to the maximum of two for each party, shall attend the instruction and judgment hearing, regardless of summons.

Paragraph 3. A witness shall only be summoned if he had been invited corroboratively not to attend. If the summoned witness does not attend, the judge may determine that he immediately be forced to attend.

Paragraph 4. Only when the proof of the fact requires, or if legally imposed, shall technical evidence be granted, requiring the judge to at once establish the period of time, the object of the expertise and the appointment of the expert.

Paragraph 5. VETOED.

Paragraph 6. The parties will be summoned to appear for the decision within the ordinary period of five days.

Paragraph 7. If the hearing is interrupted, its pursuit and the conclusion of the process shall be continued within a maximum period of thirty days, unless there is a justified relevant reason in the writs for the judge of the case.

Art. 852-I. (Added by Decree Law No. 9.957 of Jan. 12, 2000) The decision shall mention the conviction of the judgment, with a summary of the relevant facts brought forth at the hearing, the report being distributed.

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Paragraph 1. In each case, the judgment shall adopt the decision that is considered the most just and fair, assisting the social purposes of the law and the needs of the common good.

Paragraph 2. (Vetoed)

Paragraph 3. The parties shall be summoned for the sentence at the same hearing in which it was issued.

Division III

Inquiry in Case of a Serious Offense

Art. 853. For the purpose of commencing an esquire for the examination of a serious offense in the case of an employee who is guaranteed security of tenure, the employer shall submit an application in writing to the board or justice of the peace within thirty days reckoned from the date of the suspension of the employee.

Art. 854. The inquiry shall be conducted before the board or justice of the peace in conformity with the rules laid down in this chapter, subject to compliance with the provisions of this division.

Art. 855. If the security of tenure of the employee has been previously recognized, the award in the inquiry held by the board or justice of the peace shall be without prejudice to the distraint proceedings for payment of the wages due to the employee down to the date of the commencement of the inquiry.

CHAPTER IV

COLLECTIVE DISPUTES

Division I

Commencement of Proceedings

Art. 856. Proceedings shall be commenced in pursuance of an application in writing to the chairman of the court. They may also be commenced on the initiative of the chairman or at the request of the labor courts law office, if a suspension of work has occurred.

Art. 857. The application may be made by the employer or employers concerned, by their industrial associations or by the industrial associations of employees.

Sole Subsection. Where an economic or occupational category is not represented by an industrial association, representative powers may be assumed by the corresponding federation or, in the absence of a federation, the appropriate confederation, within the bounds of its competence.

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Art. 858. As many copies of the application shall be submitted as there are defendants in the case; it shall contain the following particulars:

(a) the name and style of the plaintiffs and the defendants and the nature of the establishment or service:

(b) the reasons for the dispute and the bases of conciliation.

Art. 859. The representation of the employee industrial associations for the establishment of the instance shall be subject to the approval of the assembly in which the interested associates participate in the solution of the collective dispute; this approval must be by a two-thirds majority of all of the associates upon the first convocation, or by a two-thirds majority of those present upon the second convocation.

Sole Subsection. Repealed by Decree Law No. 7321 of February 14, 1945.

Division II

Conciliation and Arbitration

Art. 860. When the application has been received and registered, if it is found to be in good and due form, the chairman of the court shall appoint a day for the conciliation hearing, within the next ten days, and shall notify the parties to the dispute, in the manner prescribed by article 841.

Sole Subsection. If the proceedings were commenced "ex officio", the hearing shall be held with as little delay as possible after cognizance has been taken of the dispute.

Art. 861. The employer shall be entitled to cause himself to be represented at the hearing by the manager or any other employee acquainted with the dispute; the employer shall always be bound by their statements.

Art. 862. At the appointed hearing, if the parties or their representatives appear, the chairman shall invite them to give their opinion on the conciliation proposals. If the proposals made are not accepted, the chairman shall submit to the parties concerned the terms which appear to him most likely to settle the dispute.

Art. 863. If an agreement is reached, the chairman shall submit it to the court for ratification at the next sitting.

Art. 864. If an agreement is not reached, or if one or both parties fail to appear, the chairman shall determine the case after taking such steps as seem to him necessary and after consulting the General Law Office.

Art. 865. If a threat of disturbance of public order arises in the course of a dispute, the chairman shall call upon the competent authority to take such measures as may appear necessary.

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Art. 866. If a dispute arises elsewhere than in the locality where the court sits, the chairman, if he considers it advisable, may delegate the powers mentioned articles 860 and 862 to the local authority. In this case, if the conciliation proceedings are unsuccessful, the authority in question shall refer the case to the court, with a detailed statement of the facts and indicating the terms of settlement which appear to it suitable.

Art. 867. Notice of the decision of the court shall be served upon the parties or their representatives by registered letter exempt from postal charges; in addition, the decision shall be published in the official gazette for the information of other persons concerned.

Sole Subsection. (Added by Decree-Law No. 424 of January 21, 1969) The standard judgment shall be effective:

(a) from the date of its publication, when the dispute is adjudicated in accordance with the time limit of Article 616, subsection (3), or. when an agreement, convention or standard judgment does not exist, on the date of the adjudication;

(b) from the day after the final end of the effective period of the agreement, convention or standard judgment, when the dispute was adjudicated within the period.

Division III

Extension of Scope of Decisions

Art. 868. In the case of a collective dispute relating to new conditions of employment in which only certain of the employees of an undertaking appear as party to the dispute, if the competent court considers this equitable and advisable, it may in its decision order the extension of the said conditions of employment to the other employees of the undertaking engaged in-the same occupation as those who are party to the dispute.

Sole Subsection. The court shall fix the date on which the decision shall be put into force, and the period of its validity, which shall not be more than four years.

Art. 869. The scope of a decision respecting new conditions of employment may also be extended to all employees belonging to the same occupational category within the jurisdiction of the court:

(a) in pursuance of an application made by one or more employers or by an industrial association of employers;

(b) in pursuance of an application made by one or more industrial associations of employees;

(c) "ex officio", by the court which pronounced the decision;

(d) in pursuance of an application made by the labor courts law office.

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Art. 870. The scope of a decision shall not be extended in the manner prescribed in the last preceding article unless three-fourth of the employers and three-fourths of the employees, or their industrial associations, agree to the extension.

(1) The competent court shall fix a time limit within which the persons concerned must make their opinions known; the time limit shall be not less than thirty nor more than sixty days.

(2) After the persons concerned and the labor courts law office have been heard, the case shall be referred to the court for a decision.

Art. 871. If the court decides to extend the scope of a decision, it shall appoint the date on which the extension will become effective.

Division IV

Compliance with decisions

Art. 872. When an agreement has been concluded or a decision become enforceable, it shall be complied with, on pain of the penalties specified in this Title.

Sole Subsection. If the employer fails to pay wages in conformity with the decision issued, the employees or their unions independently of the granting of powers by their members) shall be entitled to submit a complaint to the competent board or court; they shall attach a certified copy of the decision and shall comply with the procedure provided for in Chapter II of this Title: Provided that it shall be unlawful to question points of fact or law already settled in the decision.

Division V

Review

Art. 873. When a decision fixing conditions of employment has been in operation for more than a year, it shall be reviewed if the circumstances have changed so that the conditions of employment fixed have become inequitable or inapplicable.

Art. 874. Review of a decision may be undertaken on the initiative of the court which issued the decision, the labor courts law office, the industrial associations or the employer or employers concerned in compliance with the decision.

Sole Subsection. If the review is undertaken on the initiative of the court which issued the decision or of the labor courts law office, the industrial associations and the employer or employers concerned shall be heard within a time limit of thirty days. If the review is undertaken on the initiative of one of the parties concerned, the other parties shall be heard within the same time limit.

Art. 875. Judgment in review cases shall be given by the court which issued the decision, after hearing the labor courts law office.

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CHAPTER V

ENFORCEMENT PROCEDURE

Division I

Preliminary provisions

Art. 876. (Amended by Decree Law No. 9957 of Jan. 12, 2000 and by Decree Law No. 10.035 of Oct. 25, 2000) When decisions passed in judgment or against which an appeal with stay has not been lodged, or agreements are not fulfilled, the terms of adjustment of conduct signed before the Public Minister of Labor and the terms of conciliation signed before Commissions of Prior Conciliation shall be enforced in the manner established in this Chapter.

Sole Paragraph. Social security credits due in accordance with a decision handed down by Labor Judges and Tribunals, resulting from a condemnation or approval of an agreement, shall be enforced ex officio.

Art. 877. The justice of the peace or chairman of the court which effected the conciliation or gave the original award in the dispute shall be competent to enforce the decision.

Art. 877A. (Added by Decree Law No. 9957 of Jan. 12, 2000) The judge that is competent for the process of trying matters relative to the case is competent to enforce an extrajudicial bond conveying an enforceable right.

Art. 878. Proceedings for the enforcement of a decision or agreement may be taken on the application of any person concerned or "ex officio" by the justice of the peace or chairman of the court who is competent in conformity with the last preceding article.

Sole Subsection. In the case of a decision of a regional council, the application for enforcement may be made by the labor courts law office.

Art. 878A. (Added by Law No. 10.035 of Oct. 25, 2000) The debtor shall be allowed immediate payment of the portion due to Social Security, without prejudice to the collection of possible differences encountered in the ex officio enforcement.

Art. 879. (Amended by Law No. 2244 of June 23, 1954 and by Decree Law No. 10,035 of Oct. 25, 2000) If the enforceable sentence does not specify the amount to be paid, its assessment shall be ordered previously and may be effected by calculation, arbitration or clauses.

(1) (Amended by Law No. 8432 of June 11, 1992) In the assessment, the amount payable under the judgment may not be amended or manipulated, neither may matters pertinent to the principal case be discussed.

(1A) The assessment will also include the calculation of the social security contributions due.

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(1B) The parties must previously be summoned for the presentation of the calculation of the assessment, including the incident of the social security contribution.

(2) (Amended by Law No. 8432 of June 11, 1992) Once the account is paid, the Judge may open a successive period of 10 days to the parties to find grounds for a challenge with the indication of the items and amounts subject to disagreement, under penalty of being precluded.

(3) Once the bill is drawn up by the party or by the auxiliary organizations of the Labor Court, the judge shall proceed to summoning the National Institute of Social Security by mail through the competent branch, for its manifestation thereof, within a period of ten days, under penalty of preclusion.

(4) The updating of the credit due to Social Security shall observe the criteria established in the social security legislation.

Division II

Summons and Distraint

Art. 880. (Amended by Decree Law No. 10,035 of Oct. 25, 2000) When enforcement is required, the judge or chairman of the court shall mandate the issue of a summons to the person concerned, calling upon him to comply with the decision or agreement within the time limit, in the manner and subject to the penalties prescribed, or in the case of payments in money, including social security contributions owed to the National Social Security Institute, to pay the amount in question within 48 hours, or guarantee the payment, on pain of distraint.

(1) The summons shall contain the text of the enforceable decision or the terms of the agreement not complied with.

(2) The summons shall be served by the bailiff.

(3) If the person concerned cannot be found, after 2 unsuccessful attempts have been made within 48 hours, the summons shall be served by means of a public notice in the official gazette or in default thereof, shall be posted up for 5 days at the offices of the board or court.

Art. 881. (Amended by Law No. 7305 of April 2, 1985) If the amount claimed is paid, this shall be done before the clerk or secretary, and a receipt shall be given in duplicate, signed by the person taking distraint proceedings, by the debtor and by the clerk or secretary; 1 copy shall be delivered to the debtor and the other shall be attached to the file of the case.

Sole Subsection. If the person taking the distraint proceedings is not present, the money shall be deposited, by means of a voucher, in an official credit establishment or, in default thereof, in a suitable banking establishment.

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Art. 882. (Amended by Law No. 8432 of June 11, 1992) A debtor who fails to pay the amount claimed may guarantee the payment by means of deposit thereof, updated for inflation and including procedural expenses, or by appointing assets to be distrained, observing the preferential order established in Article 655 of the Civil Procedure Code.

Art. 883. If the debtor fails to pay or to deposit security, his property shall be seized up to such amount as will be sufficient to pay the sum specified in the judgment plus any costs and moratory interest; such interest shall in every case be due from the date on which the initial claim is judged.

DIVISION III

APPEALS AGAINST ENFORCEMENT PROCEDURE AND COUNTERCLAIMS

Art. 884. (Amended by Decree Law No. 10,035 of Oct. 25, 2000) When security is deposited or property distrained upon, the debtor shall be allowed 5 days for lodging an appeal, and the distrainer shall be allowed the same time limit for a counterclaim.

(1) The defense may only allege that the decision or agreement was complied with, that the sum in question was paid or that the action is barred.

(2) If there are witnesses for the defense, the justice of the peace or the chairman of the court, if he thinks their evidence necessary, may appoint a hearing for the taking of the evidence within a time limit of 5 days.

(3) The debtor may lodge a counterclaim only at the time of making objections against seizure; the person taking distraint proceedings shall have the same right and be subject to the same time limit.

(4) Attachments and challenges to the assessment presented by labor and social security creditors shall be judged in the same sentence.

DIVISION IV

AWARD AND FINAL ENFORCEMENT PROCEDURE

Art. 885. If no witnesses are entered for the defense, the justice of the peace or chairman, on the conclusion of the examination of the documents, shall issue his decision within five days, allowing or disallowing the distress.

Art. 886. If witnesses have been entered, they shall be examined at the hearing, and the clerk or secretary, within 48 hours, shall submit the documents in the case to the justice of the peace or chairman, who shall issue his decision in the manner prescribed in the last preceding article.

(1) When the decision has been issued, notice thereof shall be given to the parties concerned by registered letter exempt from postal charges.

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(2) If the distress is allowed, the justice of the peace or chairman shall order the property seized to be valued forthwith.

Art. 887. The value of the property seized in pursuance of an unfavorable decision shall be estimated by an appraiser chosen by agreement between the parties, who shall be paid remuneration fixed by the justice of the peace or chairman of the labor court, in conformity with a scale to be issued by the National Labor Council.

(1) If the parties fail to agree respecting the appointment of an appraiser, within 5 days after the issue of the order for the valuation of the property, the appraiser shall be appointed freely by the justice of the peace or chairman of the court.

(2) Employees of the labor courts shall not be chosen or appointed to act as appraisers.

Art. 888. After the property has been valued, which shall be done within 10 days reckoned from the date of the appointment of the appraiser, it shall be put up for public auction, which shall be announced by public notice posted up at the offices of the justice of the peace or court and published in the local newspaper (if any) twenty days in advance.

(1) The action shall be held on the date and at the time and place announced, and the property shall be sold to the highest bidder, preference being given to the distrainer.

(2) The bidder to whom the goods are knocked down shall deposit 20 per cent, of the value thereof as earnest.

(3) If there are no bidders and if the distrainer does not demand adjudication to him of the property seized, the said property may be sold by an auctioneer appointed by the justice of the peace or the chairman.

(4) If the highest bidder or his surety or agent fails to pay the amount of the bid within twenty-four hours, he shall forfeit to the distrainer the earnest mentioned in note (2) of this article, and the property seized shall be put up to auction again.

COMMENT: article 13 of Act No. 5584 of June 26, 1970 states, however: In any case, the person whose property has been seized shall be entitled to recover such property only if he offers a bid equal to an amount he was ordered to pay.

Art. 889. The rules governing distraint proceedings for the recovery by judicial means of debts to the Federal Public Finance Department shall apply, in so far as they are not contrary to this Title, to the formalities and incidental measures entailed by enforcement procedure.

Art. 889A. (Added by Decree Law No. 10,035 of Oct. 25, 2000) Collections of the amounts due for social contributions shall be effected in the local agencies of the Federal

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Economic Savings or the Bank of Brazil S.A., through a collection document of the Social Security, the process number thereof being verified.

(1) If the debtor is allowed to make installment payments of the social security debt payable to the National Social Security Institute, he must attach the document supporting the referenced adjustment to the writs, the enforcement of the respective social security contribution being suspended until the final payment of and full compliance with the installment plan.

(2) Copies of the pertinent guides to the collections enforced in the writs shall be directed monthly by the labor staff to the competent branch of the National Social Security, unless another period is established in the regulation.

Division V

Payment by Successive Installments

Art. 890. Enforcement procedure for payment of successive installments shall be governed by the rules laid down in this division, without prejudice to the other rules laid down in this chapter.

Art. 891. In the case of installments payable at regular intervals, the enforcement proceedings on account of failure to pay a particular installment shall cover subsequent installments.

Art. 892. In the case of installments payable at irregular intervals, the enforcement proceedings shall cover initially the installments due down to the date of the commencement of the proceedings.

CHAPTER VI

APPEALS

Art. 893. Decisions shall be liable to the following classes of appeal (Section 6 of Act No. 5584 of June 26, 1970 states: "The parties shall have a time limit of eight days to bring an appeal or enter a counter-plea against an appeal." "Unless they involve constitutional matters, judgments pronounced on disputes not exceeding twice the minimum wage in force in the jurisdiction shall not be open for appeal." (Section 2 of Act No. 5584 of June 26, 1970):

I. objection (embargo);

II. ordinary appeal (recurso ordinario);

III. appeal for review (recurso de revista);

IV. appeal from enforcement decisions (agravo).

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(1) The incidents of the process shall be decided by the same Justice or Court, admitting the appraisal of the merit of interlocutory decisions only in appeal of a final decision.

(2) The introduction of an appeal to the Federal Supreme Court shall not prejudice the enforcement of the judgment.

Art. 894. Objections shall be filed in the Superior Labor Court, in Plenary, within a period of eight days as from the publication of the conclusion of the arrangement:

(a) of the decisions to which paragraphs b and c of item I of Article 702 refer;

(b) of the decisions of Groups contrary to the letter of federal law, or that differ among themselves, or of a decision handed down by the Plenary Court, unless the decision is in consonance with the summation of uniform jurisprudence of the Superior Labor Court.

Sole Subsection. Insofar as the holders of new offices of justice created in this law have not been appointed and empowered, and insofar as the Groups have not been installed, residual jurisdiction of each Court and their chairmen shall be maintained in their actual composition, as defined in the legislation in force.

Art. 895. (Amended by Decree Law No. 9957 of Jan. 12, 2000) An ordinary appeal shall lie to the court of higher instance from

(a) definitive decisions of boards and justices within a time limit of 8 days;

(b) definitive decisions of the regional courts in cases where they had original jurisdiction, within a time limit of 8 days, both for individual and collective disputes.

Paragraph 1. In claims subject to summary procedure, an ordinary appeal:

I. (Vetoed)

II. shall be distributed immediately, once received in the Tribunal, the reporter duly releasing it in a maximum period of ten days, and the Secretary of the Tribunal or Group shall place it on the agenda for judgment immediately, without revision,

III. shall have to be presented orally by the representative of the Public Minister at the judgment session, if this is necessary for the understanding of the opinion, along with the registration of the certification;

IV. shall have a firm sentence only in the certification of judgment, with sufficient indication of the process and the mechanism, and the reasoning behind the prevalent vote. If the sentence is confirmed on the same bases,

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the certification of judgment recording that circumstance shall serve as the sentence.

Paragraph 2. Regional Tribunals, divided into Groups, may designate a Group for the judgment of ordinary appeals interposed from sentences issued on claims subject to summary procedure.

Art. 896. (Amended by Decree Law No. 9957 of Jan. 12, 2000) The Appeal of Review shall apply to decisions of the last instance by the Superior Labor Court, when:

(a) the same provision of federal law is given a different interpretation from that which the same or another Regional Court gave previously through Plenary Session or Groups, or through the Section of Individual Disputes of the Superior Labor Court, unless the appealed decision is in consonance with the Summary of Uniform Jurisprudence of the Superior Labor Court;

(b) the same provision of State Law, Collective Labor Convention, Collective Agreement, standard declaration or enterprise regulation of observance in a territorial area that exceeds the jurisdiction of the Regional Court, is given a different interpretation, in the manner of paragraph a; and

(c) handed down in violation of a literal provision of federal law or of the Constitution of the Republic.

(1) The Appeal of Review shall be presented in a period of eight days to the Chairman of the Appeals Court, who may receive it or refuse it, based, in either case, on promptness.

(2) Once the Appeal has been received, the appeals authority shall declare the effect thereof, the interested party possibly requesting a stay of proceedings for provisional enforcement, unless the Appeal was given suspensive effect.

(3) If the Appeal is refused, the appellant may file an Instrument against enforcement within eight days with the Superior Labor Court.

(4) The decisions handed down by the Regional Labor Courts, or by their Groups, in enforcement of judgment, including that of an incidental procedure of third party objections, shall not be subject to the Appeal of Review, except in the case of a direct offense against the Federal Constitution.

(5) If the appealed decision stands in consonance with the Summary of Jurisprudence of the Superior Labor Court, the Reporter Minister, so indicating, may refuse continuation of the Appeal of Review, Objections, or an Instrument against Enforcement. The Appeal shall be refused continuation in the cases of untimeliness, desertion, failure of jurisdiction and

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illegitimacy of representation, in the filing of an Appeal against Enforcement.

(6) In cases subject to summary procedure, the appeal of review shall only be admitted in the case of being contrary to the body of uniform jurisprudence of the Superior Labor Court and direct violation of the Constitution of the Republic.

Art. 897. (Amended by Decree Law No. 10, 035 of Oct. 25, 2000) An appeal against enforcement (agravo) shall be made in a period of eight days:

(a) by petition, against execution of decisions of a justice of the peace or chairman of a board;

(b) by instrument, against decisions disallowing an appeal.

(1) Appeal against enforcement by petition shall be received when the appellant limits, justifiably, the matters and the amounts challenged, permitting the immediate enforcement of the remaining part, under the same decrees or stay of proceedings.

(2) Appeal against enforcement by instrument filed against decisions disallowing an appeal shall not suspend the enforcement of the judgment.

(3) In the case mentioned in subparagraph (a), the appeal shall be examined by the same court under the chairmanship of the authority whose decision is appealed against, except in the case of a decision of the Labor Court of first instance or of a Circuit Judge, when one of the Groups of the Regional Court to which the authority of the decision is subject is competent shall determine the extraction of a stay of proceedings, observing the provisions of article 679, to which the necessary particulars for the examination of the disputed matter shall be remitted in separate files or in the same files.

(4) In the case mentioned in subparagraph (b), the appeal shall be examined by the court competent to take cognizance of the appeal which was disallowed.

(5) Under penalty of non-recognition, the parties shall file the formation of the instrument of the appeal against enforcement in a manner to make possible the immediate judgment of the refused appeal, instituting the petition of mediation:

I. obligatorily, with copies of the aggrieved decision, of the certificate of the respective order, of the procurements granted to the lawyers of the appellant and of the defendant, of the initial petition, of the reply, of the original decision, of the proof of the deposit of the appeal and of the collection of the costs;

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II. optionally, with other items that the appellant considers useful to the extrication of the matter of disputed merit.

(6) The appellant shall be summoned to offer an answer to the appeal against enforcement and to the main appeal, filing it with the items that are considered necessary to the judgment of both appeals.

(7) If the appeal against enforcement is provided, the Group shall deliberate on the judgment of the principal appeal, the procedure relative to that appeal being observed, if applicable.

(8) When the petition of appeal against enforcement concerns only the social security contributions, the enforcing judge shall determine the extraction of copies of the necessary items, that shall be determined separately, as provided in subsection (3), final part, and remitted to the higher court for appraisal.

Art. 897A. (Added by Decree Law No. 9957 of Jan. 12, 2000) Injunctions against declaration of the sentence or agreement shall be lodged, within a period of five days, judgment being duly made in the first hearing or session subsequent to their presentation, being recorded in the certificate, amendment of the decision being made in the cases of omission and contradiction in the judgment and in the case of manifest equivocation in the examination of the extrinsic presuppositions of the appeal.

Sole Paragraph. Material errors may be corrected ex officio or upon the requirement of any of the parties.

Art. 898. (Labor Law)

An appeal from decisions in a collective dispute which affects a public service, or in any case from decisions given on review, may be lodged not only by the parties concerned but also by the chairman of the court and by the labor courts law office.

Art. 899. (Labor Law)

Appeals shall be filed by simple petition and shall have merely devolutive effect, except for the exceptions provided in this Title, provisional enforcement being permitted up to the pledge.

(1) In individual disputes, the value of which is up to ten times the regional value of reference, the appeal shall only be admitted, including an extraordinary appeal, by means of a prior deposit of the respective amount. Once the appealed decision has passed through judgment, the immediate release of the amount of the deposit in favor of the winning party shall be ordered by a simple dispatch of the judge.

(2) In the case of an undetermined value, the deposit shall correspond to that which was arbitrated for purposes of costs by the Board or Justice of the Peace, up to the limit of ten times the regional value of reference.

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(3) Repealed by Law No. 7033 of October 5, 1982.

(4) The deposit dealt with in subsection (1) shall be placed into a related account of the employee to which Article 2 of Law No. 5107 of September 13, 1966 refers, applying the precepts of that law, that which is provided in subsection (1) being observed insofar as the respective release is concerned.

(5) If the employee has not yet opened an account in his name, in the terms of article 2 of Law No. 5107 of September 13, 1966, the enterprise shall proceed to the respective opening, for purposes of that which is provided in subsection (2).

(6) When the value of the judgment or the value arbitrated for purposes of costs, exceeds the limit of ten times the regional reference value, the deposit for purposes of appeal shall be limited to the latter value.

Art. 900. When an appeal has been lodged, notice shall be served upon the appellee, in order that he may submit his pleadings, within the same time limit as was granted to the appellant.

Art. 901. The parties shall have access to the documents in the office or secretariat of the court, without prejudice to the time limits specified in this chapter.

Sole Subsection (Added by Law No. 8638 of March 31, 1993) Unless an ordinary time limit is deemed to be in course, the attorneys of the parties shall be permitted to have access to the documents in the office or secretariat of the court.


CHAPTER VII

APPLICATION OF PENALTIES

Art. 903. The penalties prescribed in the last preceding Title shall be imposed by the justice of the peace or court having cognizance of the contravention, violation, challenge, offense or coercion, either "ex officio" or in pursuance of an application made by any person concerned or by the Labor Courts Law Office.

Art. 904. Penalties to which authorities of labor courts render themselves liable shall be imposed by the authority or court which is immediately superior, either "ex officio" or in pursuance of an application made by any person or by the Labor Courts Law Office.

Sole Subsection. In the case of a member of the Superior Labor Court, the Federal Senate shall be competent to impose the penalties.

Art. 905. Repealed by Complementary Law No. 35 of March 14, 1979.

Art. 906. An ordinary appeal against the penalties specified in this chapter may be made to the Superior Court within a time, limit of ten days, unless the penalty arose out of a collective dispute, in which case the time limit shall be twenty days.

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Art. 907. If the offender is liable to a criminal penalty, the necessary documents shall be transmitted to the competent authority.

Art. 908. The fines imposed in pursuance of this Title shall be recovered by enforcement procedure before the judge competent for the recovery of debts of the Federal Public Finance Department.

Sole Subsection. Repealed by Law No. 6830 of Sept. 22, 1980.

CHAPTER VIII

CONCLUDING PROVISIONS

Art. 909. The order of cases before the Superior Labor Court shall be governed by its standing orders.

Art. 910. For the purposes of this Title, public utility services and services performed in shops for the sale of provisions, butchers' shops, bakeries, dairies, pharmacies, hospitals, mines, transport and communication undertakings, banks and establishments of importance to national security shall be placed on the same footing as public services.

TITLE XI

CONCLUDING AND TRANSITIONAL PROVISIONS

Art. 911. This Consolidation shall come into operation on Nov. 10, 1943.

Art. 912. The provisions of a mandatory character shall be applicable forthwith to cases begun, but not completed, before the coming into operation of this Consolidation.

Art. 913. The Minister of Labor, Industry and Commerce shall issue such instructions, schedules, tables and forms as may be necessary for the administration of this Consolidation.

Sole Subsection. The Superior Labor Court shall adapt its own standing orders and those or the regional labor councils to bring them into conformity with the provisions of this Consolidation.

Art. 914. Schedules, tables and forms approved under provisions which are not modified by this Consolidation shall continue in operation.

Art. 915. Appeals based on provisions which are modified, or cases where the time limit for appeal is running at the date of the coming into operation of this Consolidation, shall remain unaffected.

Art. 916. The time limits for prescription fixed by this Consolidation shall begin to run on the date of its coming into operation if they are shorter than the time limits fixed by the legislation hitherto in force.

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Art. 917. The Minister of Labor, Industry and Commerce shall fix a time limit for the adaptation of existing establishments to the requirements laid down in the chapter entitled "Industrial Hygiene and Safety". He shall also fix the time limits within which the use of work books shall become compulsory in each State for persons at present in employment.

Sole Subsection. The Minister or Labor, Industry and Commerce shall fix for each State at his discretion the date for the coming into operation of all or certain of the provisions of the chapter entitled "Industrial Hygiene and Safety".

Art. 918. Repealed by Decree-Law No. 72 of Nov. 21, 1966.

Art. 919. Bank employees engaged not later than the date of the coming into operation of this Act shall be guaranteed the right to acquire security of tenure as provided in article 15 of Decree No. 24,615 of July 9, 1934.

Art. 920. Pending the constitution of confederations, or where none exists, representative of economic or occupational classes who are to be appointed by confederations or chairmen of confederations shall be appointed or elected by the corresponding federations.

Art. 921. Undertakings which are not included in the industrial association organization mentioned in article 577 shall be entitled to conclude collective contracts of employment with the industrial associations which represent their respective occupational categories.

Art. 922. The provisions of article 301 shall apply exclusively to employment relations entered into after the coming into operation of this Consolidation.

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Documents

Consolidation of Labor Laws Brazil