Demarest e Almeida; Advogados questions the constitutionality of new social contributions laws for employers

On June 29 a new law (LC 110/01) was enacted in Brazil creating two new social contributions related to the already existing employment security fund created by the government primarily for indirectly assisting workers to buy their first home. The instrument used by the federal government to generate new revenues for paying the FGTS bill is inappropriate, since it blatantly violates the Brazilian Constitution.