Labor | The Intensification of Labor Conciliations at Year-End: Brazilian Companies Should Consider Such Strategy

As the year comes to a close, both Brazilian companies and employees find themselves in a strategic moment to resolve labor disputes in a more amicable and faster manner.

The Brazilian judiciary is promoting consensual methods and strengthening initiatives, such as the Judicial Centers for Consensual Dispute Resolution (CEJUSCs), which aim to relieve the judicial system’s overload and encourage settlements.

The Resolução nº 586/2024 of the CNJ has been introduced to provide greater legal security to the parties involved, particularly in extrajudicial agreements, ensuring the effects of full, general, and irrevocable settlement, in accordance with the applicable legislation.

Why is year-end considered a strategic moment?

1. Financial planning: Companies seek to settle liabilities to avoid negative impacts on the annual balance sheet.

2. Mutual interest: Employees also wish to resolve disputes before the end-of-year festivities.

3. Facilitated infrastructure: Mutirões provide quick analyses and streamlined homologations.

How can companies take advantage?

1. Prioritize critical cases: Focus on processes with the highest risk or financial impact.

2. Make clear proposals: Consider the rights and financial limits to create viable settlements.

3. Utilize digital platforms: Online tools from Regional Labor Courts (TRTs) expedite negotiations and encourage participation from both sides.

4. Strengthen relationships: Demonstrating a willingness to resolve conflicts ethically will not only resolve disputes but also enhance the company’s image.

Labor conciliation is more than just an opportunity to reduce liabilities: it is a strategic tool for companies to demonstrate maturity in conflict management and protect their financial health. Settling disputes at year-end, supported by initiatives such as the National Weeks of Conciliation, not only contributes to a more balanced financial statement but also strengthens the corporate reputation as an organization that values agile, ethical, and efficient solutions.

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