The national government has presented a labor reform proposing the repeal of Law No. 14,546, known as the Commercial Traveler's Statute (EVC). This action eliminates the special legal regime that regulated the activity of these workers and transfers them to the general framework of the Labor Contract Law (LCT).
The main points highlighted by the news agency are:
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Change in Indemnity Calculation Base. The amount of severance pay for unfair dismissal will now be governed by the LCT, changing the previous calculation criteria from the special statute. Instead of using the highest amount of commissions earned in the last year of service, the reform will apply the "Best Monthly, Normal and Usual Remuneration" (MRMNH) earned during the last year or the entire period of service. This replaces a criterion that could include exceptional sales peaks with one of normality and habituality.
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Applicable Regulation after Repeal. Travel and expense allowances, compensation for mileage, and other items will no longer be governed by the statute's guidelines and will be adjusted to the new wording of the LCT's articles on supplementary benefits and travel expenses. The right to receive commissions after the termination of the employment relationship for already closed deals will also be governed by the LCT.
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Elimination of Client Compensation. The EVC established an autonomous compensatory payment, which is now eliminated. The commercial traveler will no longer receive the equivalent of 25% of the total remuneration earned during the last five years or the entire length of service in case of dismissal. The client compensation was an additional concept to the severance pay. Its elimination reduces the economic cost of terminating the employment relationship for the employer.
