Businessman Nisomar Provenzano has once again stirred debate within Brazil’s business community by publicly defending the urgent need for a Business Protection and Defence Code — an initiative that is beginning to gain support among productive sectors that complain about excessive penalties and legal uncertainty in the country.
In his most recent statement, Provenzano highlighted what he considers an “absurd, unfair and disproportionate” issue: the automatic 50% fine imposed by the Justiça do Trabalho when a court-approved settlement is not paid on the agreed date. In his view, the percentage represents a distortion that ignores the reality faced by millions of entrepreneurs, particularly small and medium-sized businesses.
“What investment in Brazil yields a 50% return per month? None — except the Labour Courts. When a business owner cannot pay an agreement on the day, the penalty is 50%. Not even banks charge that, nor does the Código Civil provide for anything like it,” the businessman stated, drawing attention to what he considers a clear case of unjust enrichment.
Provenzano stresses that the issue is not the existence of rules, but the lack of proportionality. In his view, the country has created robust protection mechanisms for minorities — important advances — yet has left completely unsupported the group that generates the most jobs and drives the economy: entrepreneurs.
The businessman questions how long what he describes as “a historic injustice against those who produce” will be tolerated. According to him, it is necessary for the Congresso Nacional to open the debate and update legal provisions, ensuring legal certainty and coherence in the penalties imposed.
“Business owners need to unite and raise this banner. It is not about disrespecting the law, but about fighting for fairness and reasonableness. The productive sector can no longer be penalised for structural failures that the State itself cannot correct,” he emphasises.
Provenzano’s remarks have resonated among accountants, labour lawyers, trade associations and business leaders who face daily tax, bureaucratic and judicial pressure. For many, the issue arises at a decisive moment, as Brazil seeks to regain economic momentum and encourage entrepreneurship.
Provenzano’s provocation leaves in the air an uncomfortable — yet necessary — reflection:
how long will Brazilian entrepreneurs continue to shoulder alone a system that, in the businessman’s words, “seems designed to punish those who work”?
