Justice sides with companies and suspends part of Lula's decree that reformulated meal vouchers
The decision benefits companies associated with the Brazilian Association of Worker Benefit Companies
TL;DR
- Federal judge Frederico Viana suspended parts of President Lula's decree reforming the Worker's Food Program (PAT).
- The suspension benefits companies associated with the Brazilian Association of Worker Benefit Companies (ABBT).
- Temporarily suspended rules include mandatory open payment arrangements for operators with over 500,000 workers, fee limits for merchants, and a 15-day deadline for fund transfers.
- The court also prevents the government from applying sanctions based on the suspended provisions.
- The ABBT argued the decree exceeded regulatory authority and could harm companies' economic viability.
- The judge found indications that the decree introduced new legal requirements without explicit legislative backing and could disrupt financial balances in existing contracts.