The Brazilian Superior Labor Court (TST) has been steadily consolidating legal interpretations that significantly impact labor relations. In a plenary session held on March 24, 2025, the Court issued binding precedents (known as tese jurídica vinculante) on a series of new topics through a procedure known as “jurisprudential reaffirmation.”
This procedure, provided for in Article 896-C of the Brazilian Labor Code (CLT) and regulated by Articles 132 and following of the TST Internal Rules, aims to solidify consistent case law into binding legal theses. Once adopted, these theses prevent the proliferation of appeals on the same legal questions and help unify labor court decisions across the country.
Key topics include:
1. Outsourcing and Subsidiary Liability: Companies that hire outsourced labor may be held subsidiarily liable for labor debts—even when multiple companies jointly benefit from the same service (RR-0010902-17.2022.5.03.0136).
2. Occupational Illness and Monthly Compensation: In cases where both work-related and external factors contribute to a worker’s illness (concausality), the amount of monthly compensation may be reduced by up to 50%, unless an expert report attributes greater responsibility to the employer. This reinforces the need to closely monitor expert medical reports, especially following Joint Act No. 4/2024 (TST/CSJT), which requires judges to report final decisions involving employer fault in workplace accidents or illnesses to the Federal Attorney General’s Office (AGU) (RRAg-0000340-46.2023.5.20.0004).
3. Material Damages Compensation: The choice between a lump-sum payment or monthly installments rests solely with the judge, based on reasoned legal judgment—not on the parties’ preference (RRAg-0000348-65.2022.5.09.0068).
4. Work in Cold Environments and Hazard Pay: Failure to provide thermal breaks to employees working in cold chambers or artificially refrigerated environments entitles them to hazard pay, even when appropriate Personal Protective Equipment (PPE) is provided. Companies operating under such conditions should review practices to avoid labor liabilities (RRAg-0010702-77.2023.5.03.0167).
5. Social Security Discharge and Return to Work: Preventing an employee from returning to work after being discharged by social security authorities, thereby withholding their salary, constitutes in re ipsa moral damages—meaning compensation is presumed and does not require further proof (RR-1000988-62.2023.5.02.0601).
6. Breach of Contract and Constructive Dismissal: Repeated failure to pay overtime and to provide mandatory meal breaks may justify constructive dismissal under Article 483 of the CLT. Employers must monitor compliance with such obligations to avoid costly lawsuits (RRAg-1000642-07.2023.5.02.0086).
7. Penalty under Article 477(§8) of the CLT: The legal fine is due if a just cause dismissal is reversed in court (RRAg-0000031-72.2024.5.17.0101).
8. External Work and Time Control: When employers claim they cannot track the working hours of external employees, the burden of proof lies with the employer (RRAg-0000113-77.2023.5.05.0035).
9. Hazard Pay in Fueling Operations: Employees merely accompanying a third party during vehicle fueling are not entitled to hazard pay (RRAg-0020213-03.2023.5.04.0772).
The consolidation of these precedents limits the ability to file new appeals to the TST on these issues and avoids conflicting rulings, resulting in greater legal certainty and faster case resolution. For employers with ongoing lawsuits involving these matters, it is essential to reassess litigation strategy. Once a case is governed by a binding precedent, legal risk becomes predictable—and often unavoidable.
In this context, pursuing a judicial settlement is no longer just a procedural convenience—it becomes a strategic tool for labor liability management, offering savings on court fees, expert witnesses, attorney fees, and potential damages.
At the same time, labor due diligence projects should include a focused review of exposure to these new precedents—especially in outsourced service contracts, expert medical assessments, time tracking procedures, hazard allowance policies, and return-to-work processes after social security leave.
With the TST moving toward jurisprudential uniformity, proactively managing risk, structuring a sound settlement policy, and strengthening internal controls may be the decisive factors separating costly litigation from a smart, compliant, and forward-thinking labor strategy.
