Provisional Measure No. 873/2019, published on March 1, 2019, changes articles of the Brazilian Labor Code ("CLT") regarding the deduction of labor union fees, which now requires the express approval of the employee.

According to the provisional measure, the previous consent of the employee must be formalized individually, and collective authorization, by means of general assembly, is strictly forbidden.

A brief summary of the major rules changes rendered by Provisional Measure No. 873/2019:

  • Enforceability: Any payment to a labor union can only be required from employees and employers effectively affiliated.
  • Requirement of Authorization: Regarding non-affiliated employees and employers, the contributions will only be made if there was a previous individual, written authorization.
  • Prohibition of Tacit or Collective Authorization: Authorization via general assembly cannot serve as a substitute for the individual authorization.
  • Collective Bargaining Agreements: Any clause that provides compulsory contribution to a labor union is null and void .
  • Payment of the Contributions – Bank Slip: When authorized, the contributions must not be deducted from the salary. The employee will pay through a bank slip that will be sent to the employee’s residence or to his or her employer's headquarters.

The provisional measure came into effect as of the date of its publication (March 1) and is effective for 60 days from that date. After 60 days, it will be renewable for 60 more days if it has not yet been evaluated by the National Congress, which may convert (or not) the measure into law, possibly with significant changes.