Justice Gilmar Mendes, of the Brazilian Supreme Federal Court (STF), has suspended all ongoing cases questioning whether hiring workers as legal entities, a practice known in Brazil as pejotização, is lawful. The suspension will remain in effect until the Court rules on Theme 1389, a case with recognized general repercussion that will address two central issues: the definition of jurisdiction and the burden of proof in disputes over alleged fraud in civil service contracts, as well as the legality of hiring through a legal entity or as an independent contractor.
The decision affects thousands of labor lawsuits, particularly in sectors such as technology, healthcare, and general services, where this model of engagement is more common. The purpose is to avoid conflicting court decisions on the same matter and to align the judiciary’s approach with the position already being developed by the Supreme Court.
Coletta Rodrigues Advogados is closely monitoring this debate and is ready to assist companies in understanding the legal risks and opportunities involved in structuring their workforce. Legal certainty is also built through specialized guidance and well-founded decision-making.
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