Labour regulations focus on conditions of work and pay, and are quite detailed. The rigidity of regulations sometimes restricts the establishment of mutually beneficial labour agreements, resulting in a discrepancy between common practice and the law', thus posing legal risks to companies. It is not uncommon that the interpretation of labour regulations by labour courts is surrounded by uncertainties and some sources highlight the considerable difficulties that Brazilian businesses face in complying with labour laws (The Economist, 2011). Innovative firms are likely to be more dependent on adequate conditions for hiring and dismissing people, complemented by good systems of unemployment insurance and support for job placement, skills improvement and continuous learning.