Landmark rulings issued by the Superior Labor Court (TST), regulatory changes, new compliance obligations, and the consolidation of judicial precedents reshaped the legal environment and required companies to adopt a more strategic and proactive approach.
With a view toward supporting preparation for 2026, we highlight below five key topics that summarize the main lessons learned over the past year and point to relevant paths forward.
1. Legal Certainty and the Consolidation of Precedents: In 2025, the TST consolidated several binding precedents, bringing greater predictability to labor relations. At the same time, these developments required companies to reassess their contractual structures and internal practices. For 2026, organizations are encouraged to review their hiring models and internal frameworks to ensure alignment with the new jurisprudential standards and to mitigate labor risks.
2. Mental Health and Psychosocial Risks at the Center of the Agenda: The entry into force of obligations related to the identification and mitigation of psychosocial risks, pursuant to NR-1, combined with the sharp increase in claims involving moral harassment and burnout, has placed mental health at the forefront of the labor agenda. As of May 26, 2026, the Ministry of Labor will be authorized to impose penalties on companies that fail to comply with Ordinance MTE No. 1,419/2024. In this context, the adoption of structured well-being programs, effective reporting channels, and continuous leadership training has become essential.
3. Artificial Intelligence and Workforce Management: Efficiency with Accountability: The use of artificial intelligence in recruitment, performance evaluation, and working time management has expanded significantly, bringing efficiency gains but also new legal challenges. Issues such as transparency, algorithmic bias, and data protection have moved to the center of the debate.
Looking ahead to 2026, the trend points toward stronger governance frameworks, ensuring that the use of technology in employment relationships remains ethical, compliant, and legally sound.
4. Uncertainty Surrounding Independent Contracting and Its Practical Impacts: The decision of the Brazilian Supreme Federal Court (STF) to suspend, nationwide, proceedings concerning the legality of engaging individuals through legal entities (Theme 1.389) has created a scenario of considerable legal uncertainty, particularly in sectors such as technology, healthcare, communications, and consulting.
Despite the suspension, the lack of consensus among the justices and the persistence of divergent lower-court rulings have kept legal risk levels high. For 2026, companies are advised to reassess their contracting models, map potential vulnerabilities, and prepare for adjustments depending on the Court’s final ruling. The core issue remains the factual assessment of whether the elements required to characterize an employment relationship are present.
5. A New Balance in Collective Labor Relations: The strengthening of collective bargaining, combined with a more pragmatic approach by Labor Courts in handling collective disputes, signals a renewed emphasis on social dialogue. The prevailing trend favors negotiated solutions and greater autonomy for the parties involved. In this context, investing in negotiation strategies, strengthening labor relations teams, and structuring robust collective bargaining agendas have become important competitive differentiators.
In summary, 2025 marked a period of significant transformation in Brazilian labor law, and 2026 will demand an even more strategic, preventive, and integrated approach. Anticipating risks, revisiting practices, and aligning legal strategy with business objectives will be essential for navigating an increasingly complex regulatory environment.
