Outsourcing service providers in Brazil claimed their first victory after more than 10 years campaigning following the approval, by Brazil’s House of Representatives in April 2015, of Bill 4.330/2004, which overturns existing legislation (Precedent 331) limiting the use of outsourcing to non-core business functions.

According to a nationwide survey of nearly 1,500 companies in the outsourcing sector, the law is expected to bring better protection for workers and greater legal certainty for companies. The survey was commissioned by Brazil’s Trade Union of Human Resources, Temporary Work, and Outsourcing (FENASERHTT) and the Trade Union of Outsourced and Temporary Employment Services for São Paolo (SINDEPRESTEM).

In Brazil temporary assignments are limited to three months (with one extension permitted for no longer than an additional three months). As a result many staffing firms supply complementary outsourcing services to clients alongside their temporary staffing services.

The vast majority (90%) of respondents expect the Bill to benefit the sector, with 64% expecting that it will also offer greater protection for workers.

Most companies (38%) don’t think that the Bill will impact the retention of workers in the sector; while 32% think it will positively impact retention, and 30% fear that it will be bad for business.