São Paulo

Lula signs bill regulating work of app‑based drivers

Brazilian President Luiz Inácio Lula da Silva on Monday (Mar. 4) signed a bill regulating the work of app-based drivers. The draft will be sent to the National Congress for a vote. If approved by parliamentarians, it should come into force after 90 days.

In the document, the government proposes the amount that should be paid for every hour of work as well as contribution to social security.

They will be entitled to receive BRL 32.90 per hour of work.

“You have just created a new modality in the universe of work. A child has been born into the world of employment. People want autonomy, so they will have autonomy, but they need a minimum guarantee,” said President Lula after signing the document.

These workers, the president added, will have to fight to convince parliamentarians to approve the proposal.

The proposed bill is the result of a working group created in May 2023, formed by federal officials, workers, and companies, and was monitored by the International Labor Organization (ILO) and labor prosecutors.

Labor Minister Luiz Marinho said the group discussed whether rideshare drivers should fall under the rules of Brazil’s Consolidation of Labor Laws, known as CLT. Most workers in the trade opted for autonomy with guaranteed rights, he reported.

“The novelty here is a different arrangement: autonomous with rights. Drivers can be registered with as many platforms as they want and organize their schedules, but their rights will be covered,” the minister stated.

Other rules included in the bill

  • The creation of the “self-employed platform worker” category.
  • Drivers and companies will contribute to Brazil’s social security system INSS. Workers will pay 7.5 percent of remuneration, employers will pay 20 percent.
  • Female drivers will be entitled to an allowance on maternity leave.
  • The working day totals eight to 12 hours.
  • There will be no exclusivity agreement. Drivers will be able to work for as many platforms as they wish.
  • For each hour worked, professionals will receive BRL 24.07/hour to pay for cell phone costs, fuel, vehicle maintenance, insurance, taxes, and other expenses. This amount does not count as remuneration, but as compensation.
  • Drivers will be represented by a union in collective negotiations as well as in judicial and extrajudicial claims.

In Brazil

In 2022, the country had 778 thousand people working in passenger transportation apps—52.2 percent of workers on digital platforms and service apps, as per official figures. Another indicator shows that 70.1 percent of people working in apps were informal.

At the ceremony, the president of the App-based Drivers Union of São Paulo State, Leandro Medeiros, said that over 1.5 million families across Brazil depend on the income generated by this form of transportation.

He asked the government to consider creating a credit line so that workers can afford to replace their vehicles. As it stands today, he said, drivers are “at the mercy of car rental companies.” President Lula said he would discuss the issue with banks.

The executive director of the Brazilian Association of Mobility and Technology, André Porto, pointed out that the proposal reconciles “technological progress with social rights.”

In a statement, Uber said it considered the bill presented by the government “to be a milestone towards balanced regulation of platform-mediated work. The bill extends the protections of this new form of work without prejudice to the flexibility and autonomy inherent in the use of apps to generate income.”

“The company values the process of dialogue and negotiation between representatives of the workers, the private sector, and the government, culminating in the drafting of this proposal, which includes consensus such as the legal classification of the activity, the model of inclusion and contribution to social security, a standard of minimum earnings, and rules of transparency, among others,” the note reads. 

The company also said it will observe the progress of the bill in Congress.


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