Regulation: how does it impact the lives of workers?

Regulation is every type of intervention that the State makes in public and private economic activity. Thus, intervention can be to control and guide the market or to protect the public interest.

Therefore, you may have already read reports and articles or heard in the news the use of the expressions regulation and regulation as synonyms. It is common for us to read or hear something like this: “The parliamentarians regulated the use of…” and “The president’s decree regulates the charging of…”. Well, know that the authors of the texts made a mistake.

Therefore, as you will understand below, in addition to being two legal concepts, the Portuguese language dictionary itself indicates that regulation and regulation They are nouns with different definitions.

What is regulation?

As we mentioned at the beginning of the text, regulation is every type of intervention that the State makes in public and private economic activity. Thus, intervention can be to control and guide the market or to protect the public interest. And it can only occur through the approval of laws, that is, through the Legislative process.

They may apply the editing of regulatory standards, for example, to:

a) monitor compliance with legislation,
b) authorize the permission or concession of public service,
c) impose sanctions,
d) mediate conflicts (to prevent or resolve them, using various techniques, for example: public consultation; public hearing; conclusion of a cessation commitment and adjustment commitment).

Technological development creates new economic standards and, consequently, can lead to new relationships between workers and companies. Therefore, establishing rules for emerging labor relations, that is, regulating them means allowing the rules of the game, rights and duties, to be definitively agreed upon.

Regulation: meaning

Regulation is the process by which the government or other governmental authority establishes rules, laws and policies that guide the conduct of individuals, companies and other organizations in a particular area or sector. 

Regulation can be applied to several areas, such as finance, health, environment, transport, energy, telecommunications, among others. It may include requirements for licenses, safety standards, quality standards, tariffs, taxes and other measures.

What is the objective of regulation?

In the context of app workers, regulation aims to protect their rights and ensure fair working conditions.

Many app workers are classified as independent contractors. Thus, this means they do not have access to employment benefits such as minimum wage, health insurance, and paid leave. 

Regulation can help change this situation by establishing clear rules for classifying app workers and ensuring they are treated fairly.

Additionally, regulation may require app companies to provide safety equipment and adequate training for their workers. It will also ensure that hours worked are recorded correctly and that workers are paid in accordance with labor laws.

By ensuring that app workers are treated fairly and receive adequate protections, regulation can significantly improve the quality of life of these professionals and create a safer and more equitable work environment.

iFood defends labor regulation for digital platforms

First of all, those who work on a digital platform have the freedom and autonomy to decide how to spend their time and which application they will offer their professional skills to. The composition of your income, in general, results from the use of more than one mobile app. Thus, this is a big difference in relation to workers in traditional branches of economic activity.

Current labor legislation does not take into account this reality resulting from the increasingly accelerated technological development that has consolidated a new economy.

Because of this, iFood argues that it is time to collectively build a regulatory framework that does not force workers on these platforms to choose between having more benefits and security in the activity or having less flexibility and autonomy.

Therefore, iFood understands that it is time to put the dignity of those who work with mobile applications at the center of its concerns. To this end, professionals, companies, public authorities, universities and organized civil society must dedicate themselves to a debate on regulation that ensures digital platform workers:

  • access to the Social Security system,
  • minimum earnings,
  • accident insurance,
  • health advantages,
  • protective funds in case of illness.

Thus, the democratic process will generate win-win-win. The workers win, who now have minimum security. Companies win, as they now have legal security to invest and innovate. And society wins, with the inclusion of thousands of workers in the Social Security system.

Why regulation is important for couriers

Regulation is important for app couriers because it can help ensure the protection of these workers' labor rights.

Many app couriers are considered self-employed or freelancers. This means they may not have access to the same benefits as full-time workers, such as paid vacation, health plans and job security, for example.

Regulation can help ensure that app couriers receive a fair wage, as well as benefits and social protection.

This can be done through laws and regulations that establish clear rights and responsibilities for both app companies and couriers.

Furthermore, regulation can also help ensure the safety of delivery people, as well as app users. This may include training requirements, safety equipment, insurance, and background checks.

Regulation: learn more about self-regulation

Self-regulation is nothing more than the establishment, through a written document, of norms of conduct and standards of behavior created by legal entities without the participation of the State.

Compliance with these rules of good practice in their activities must be followed by those who prepare, approve and subscribe or adhere to this self-regulation. Thus, it is expected to reduce the system's risk for economic agents.

In the capital market, for example, BM&FBovespa Supervisão de Mercados or BSM, an arm of B3, exercises self-regulation to ensure that all negotiations made on the stock exchange follow strict integrity standards. To this end, it guides, investigates, reports and even judges and applies punishments for misconduct.

Another case is that of advertising in Brazil, which since the 1970s has had the Brazilian Advertising Self-Regulation Code. In May 1980, it created the National Advertising Self-Regulation Council (Conar) to monitor the ethics of commercial advertising broadcast in the country.

How does a regulation system work?

A regulatory system is a structure established by the government to monitor and enforce laws and regulations in a given area. 

In the case of app workers, regulation can help ensure fair working conditions and protect their rights.

The regulatory system can be implemented through independent government agencies, responsible for monitoring and enforcing laws and regulations. These agencies can impose sanctions, such as fines and penalties, on companies that are not following the rules.

In the case of app workers, regulation may include requirements for classifying workers as employees or independent contractors.

Therefore, it will establish minimum wages and employment benefits, as well as ensuring that hours worked are recorded correctly and that workers are paid appropriately.

Understand the difference between regulation and regulation

Regulation and regulation are two concepts that will be related, but distinguishable, within the scope of governance and law.

Regulation is a broader, more general process that involves creating rules, policies and laws that guide the conduct of individuals, companies and other organizations in a particular area or sector.

On the other hand, regulation is a more specific and concrete process, which involves creating detailed and specific rules to implement regulation. 

Regulations are drawn up by the bodies responsible for regulation in a given area, with the aim of ensuring the correct application of established laws and policies.

What is regulation?

The position of President of the Republic belongs to the federal Executive Branch. Therefore, its responsibilities are established by the country's Constitution, in its article 84.

The fifth section will state that it will be up to him to issue decrees so that a given law that Congress approves is complemented and implemented in its entirety. This is called regulation of the law. It is through decrees that the administrative decisions of the Chief Executive are formalized.

Regulation, therefore, cannot create something that is not in the law nor can it modify it.

There are also normative acts that ministers will edit. This is the case with normative instructions, resolutions, ordinances, etc. Its application is more restricted to the enforcement of laws. By symmetry, the same goes for States (governors) and municipalities (mayors).

Can't the President of the Republic, the governor or the mayor make laws?

The Executive Branch (president, governor, mayor) cannot make or change laws, that is, it cannot legislate. However, you can, yes, articulate your bench in the Legislature (Congress, Legislative Assembly, City Council) to vote in this or that way.

It is also not up to the Executive to change what was approved by parliamentarians. It only has the opportunity to propose the bill and to veto or sanction what was approved by the Legislature.

In the veto, legislators have the last word. They can validate or overturn the Executive’s act.

What is a Provisional Measure?

Every rule has its exception, right? The President of the Republic cannot create laws, except in cases of relevance and urgency, that is, a situation important enough to receive immediate intervention from the public authorities, a decision that involves a lot of responsibility.

So, when this happens, it can issue a Provisional Measure (or MP), a unipersonal act of the President, which has the immediate force of law.

Therefore, check out the biggest differences between a common law and a provisional measure:

  • the MP has legal force before being analyzed by the Legislative Branch, while a common law only comes into force after approval by parliamentarians;
  • the MP is born with an expiration date (60 days, extendable for another 60), and it is up to Congress to decide whether or not it should become a law permanently.

How do congressmen discuss and vote on a Provisional Measure?

Firstly, the Provisional Measures are submitted to Chamber of Deputies immediately after the president publishes them. Within 60 days after publishing the MP, the Chamber and Senate must vote on whether or not it should be converted into law.

If nothing is decided by this deadline, Congress can still extend its vote for another period of 60 days.

Can the President of the Republic issue a Provisional Measure on any subject he wants?

No. The president is not allowed to make MPs on any topic. A Constitutional Amendment 32/2001 brought several restrictions, in order to make the power of provisional measures less abusive. They do not apply in the following situations:

  1. nationality, citizenship, political rights, political parties and electoral law
  2. criminal law, criminal procedure and civil procedure
  3. organization of the Judiciary and the Public Ministry
  4. multi-year plans, budget guidelines and budget
  5. detention or seizure of assets, savings or any other financial asset
  6. matters reserved for complementary law (complementary laws are approved by an absolute majority, while provisional measures by a simple majority)
  7. matters already regulated in bills approved in Congress and pending sanction or veto by the President

Find out more about iFood's initiative to debate and collectively build regulation for work on digital platforms.

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