Labor Reform

Forms of hiring: impacts of the labor reform

A recurring theme in the business world is the recent changes arising from the labor reform. Among the various aspects of the reform, one of the prominent topics is the changes regarding the models for hiring employees and services.

This is because, following the reform, there are new developments and changes in the ways we can hire. In other words, when faced with a demand for a specific activity or service, companies now have a range of alternatives.

On the one hand, a professional can be hired under a formal employment relationship, which in Brazil is governed by the CLT. However, it is essential to choose the most appropriate model: whether traditional CLT, part-time CLT, or even intermittent CLT. The latter is a new model whose application possibilities, due to its flexibility, are diverse.

On the other hand, the reform also introduced changes regarding contracting services. In this aspect, we have temporary work, whose term was extended and the justifying reasons expanded, covering complementary demands in addition to replacing personnel. Another model is outsourcing, which will expand with the removal of restrictions limiting it to non-core activities, given that today it can be used for the transfer of any activities, including core business operations.

Therefore, it is up to hiring organizations—with HR playing a prominent role—to assess the best hiring model for each specific business need, taking into account strategic, operational, human relations, and cost aspects. Thus, planning is critically important.

Equally strategic is the need for companies to enhance their HR management processes in light of this new scenario and, when engaging service providers, to strengthen their Outsourcing Risk Management processes.

Indeed, the labor reform must be viewed from a strategic perspective as a potential source of opportunities and risks. Therefore, proper planning, operational management, and oversight of the risks involved in outsourcing are essential.

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