1.5. Additional Contribution for Excessive Rotation
The additional contribution due to excessive rotation applicable to companies with an annual weight of fixed-term contracts greater than the respective sector indicator in force was created.
This additional contribution rate is applied progressively based on the difference between the annual weight of fixed-term contracting and the sector average, up to a maximum of 2%, with the scale of progression being defined in a regulatory decree.
The additional contribution due to excessive rotation is not applicable in situations of fixed-term employment contracts entered into for
(i) replacement of an employee on parental leave, or for replacement of an employee with temporary incapacity for work due to illness for a period equal to or longer than 30 days;
(ii) very short-term employment contract and
(iii) contracts mandatorily entered into on a fixed-term basis by law or due to the constraints inherent to the type of work or the employee's situation.
The application of the additional contribution due to excessive rotation took effect on 1 January 2020 and the first notification for payment took place in 2021.
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