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6 Jan 2022

Latin America Business Stories

Brazil: Law requiring app companies to hire insurance to protect their couriers in case of accidents is sanctioned

Agência Brasil - EBC

"Bolsonaro sanctions law that requires insurance for delivery app couriers; Brazil's leading app, iFood supports the measure", 06 January 2022

...President Jair Bolsonaro...sanctioned a bill that requires app companies to hire insurance to protect their couriers in case of accidents during the work period. iFood, the country’s leading delivery app, supported the measure, saying that it already offers the resource to its partner couriers, but defended the discussion around new labor legislation, which takes into account the work models introduced by the companies of the so-called new economy.

According to the text released by the General Secretariat of the Presidency of the Republic, insurance policies must cover personal accidents, permanent or temporary disability and death.

In addition, companies must offer financial assistance for 15 days, extendable for two more periods of 15 days, to couriers infected by the novel coronavirus. Bolsonaro vetoed, however, a section of the bill that required companies to provide food to deliverers through the worker’s feeding programs (PAT), claiming that the measure would lead to revenue waiver without compensatory measures.

LABS contacted iFood and Rappi to find out what the companies thought of the new law. Rappi said it would not comment. iFood, in its turn, said that the assurances required by the new law are already part of the benefits package offered by the company to its partner couriers. However, before listing the benefits of this package, the platform defended that it is necessary to promote a public debate on “the need for a regulation that supports new work models and that ensures professionals’ rights, such as access to social security”...