The new Law No 21,690 was enacted on August 24, 2024, and introduces changes to labor legislation in the area of inclusion to strengthen and expand employment opportunities for people with disabilities and people receiving disability pensions.
One of the most relevant modifications is the increase in the hiring quota for companies with 100 or more workers, which goes from 1% to 2% of personnel with disability or disability pension. This increase, effective for both the public and private sectors, once 80% compliance with the initial 1% quota is verified, is a step towards a more just and equitable labor market. The Ministries of Social Development, Finance and Labor will be in charge of preparing annual compliance reports for the institutions and companies required by Law.
The regulation also changes the system of donations – 24 minimum salaries for each person who was not hired – as an alternative form of compliance for those companies that cannot justifiably comply fully with the inclusion quota. Donating to only one organization will no longer be possible, but to at least two, where one of them must be domiciled outside the Metropolitan Region. In addition, it will no longer be possible to invoke the nature of the company’s line of business as a reason for not directly contracting the due quota.
Change to the regime of fines
The new Law modifies and clarifies the regime of sanctions to be applied by the Labor Directorate in this matter. Fines will be applied for each month in which the infraction is verified and will be multiplied for each person with a disability who should have been hired. The fine for medium-sized companies is 20 UTM per month for each individual who should have been hired, and for large companies, it is 30 UTM under the same concept.
Work environment protocol and changes to the public sector
Companies must now implement a protocol to promote inclusive work environments by the principles of Law No. 20.422 on equal opportunities and social inclusion. This document must be provided annually to workers.
The new Law also introduces reforms to the public sector, including municipalities and education assistant positions. To fill these positions, completion of secondary education will be required. In addition, the Law considers that people with disabilities who studied in special schools also meet this requirement, eliminating an important impediment to their hiring.
In addition, the Comptroller’s Office will have to supervise compliance with these regulations in the public sector. Most of the changes will come into effect after the Law is published in the Official Gazette. However, the increase of the employment quota for people with disabilities to 2% will become effective in January after the Ministry of Social Development certifies that 80% compliance has been reached.
The inclusion of regular secondary education and special education in public sector hiring will enter into force on September 1, 2025, the first day of the thirteenth month after the publication of the Law. On the other hand, the amendments to the fines regime will enter into force in January 2025, one year after the publication of the Law. Infringements already being processed by the Labor Directorate before these changes will be sanctioned according to the rules in force at the time of their initiation.
Read Law 21.690 here