The Supreme Federal Court of Brazil decided, by a large majority, that companies that did not participate in the information phase of a labor lawsuit cannot be automatically included in the execution, even if they are part of the same economic group as the company originally sued.
Therefore, it would be worth highlighting that the judgment of Theme 1,232 of general repercussion represents a milestone in corporate accountability and reinforces constitutional guarantees such as the adversarial system and full defense, essential foundations of due process.
Until the ruling in question, it was common in the Labor Courts that, during the execution phase, companies from the same group were included in the passive pole based on indications of economic or corporate ties, without having participated in the discussion of merit and the production of evidence that ensure the full exercise of the right of defense.
With the new guidance from the Supreme Federal Court, joint and several liability now depends on the prior inclusion of the company in the initial petition, except in cases of business succession or abuse of legal personality, which must be investigated through due legal procedure.
In these exceptional situations, the inclusion of companies that were not part of the knowledge phase must occur through the Incident of Disregard of Legal Personality, an instrument that ensures contradiction, broad defense and production of evidence before any asset seizure.
In other words, the mere existence of an economic group no longer authorizes the automatic inclusion of companies in the execution. It will be essential to demonstrate, substantiate and follow the appropriate procedural rules.
The Supreme Court’s decision reinforces legal certainty and predictability, essential foundations for the stability of business relationships and the encouragement of foreign investment. In practice, the new understanding creates a less hostile environment for business activity, reducing the risk of arbitrary executions against companies that did not participate in the original action or do not have a direct relationship with the convicted company.
On the other hand, the scenario imposes greater rigor on corporate governance. It will be essential to maintain organized corporate documentation, prove autonomy between group companies and act preventively in compliance and legal management.
The decision values preventive legal planning protects legitimate business autonomy and reinforces a more predictable and balanced business environment, without giving up the effective protection of labor credits.
