Regarding a sensitive subject of outsourcing in Brazil, a section of the Superior Labor Court (TST) just admitted two new Incidents of Repetitive Appeals (IRR), which will establish important guidelines on subject.
These rulings are expected to significantly impact business practices in 2025.
In the first case, the TST will assess the validity of hiring services linked to the core activities of the contracting company, in situations where the same services have been performed by the same worker but through successive outsourced companies.
In the second case, the discussion will focus on the possibility of changing the employment relationship model to a service provision arrangement, even when both parties agree to the change.
The IRRs play a crucial role in standardizing case law, providing greater legal certainty, and expediting labor processes. Since the rulings on the Argument of Noncompliance with a Fundamental Precept (ADPF) 324 and the Supreme Court’s General Repercussion Theme 725, which confirmed the legality of outsourcing core activities, the topic has generated a significant volume of constitutional claims and questions about the application of the Supreme Court precedents, including the annulment of decisions issued by labor courts.
Although the principles for recognizing an employment relationship remain the same — personal service, regularity, remuneration, and especially subordination — the upcoming TST rulings in these cases may provide greater clarity on the legal boundaries for hiring outsourced and service providers.
It is essential for managers to follow these deliberations closely and, if necessary, review their practices with the assistance of a labor law professional. Adapting to current legislation and implementing measures to mitigate labor risks will be critical in 2025.
