Labour & Employment | Edition 28

26.05.2026

Key Highlights

Additional Hazard Pay. Heat Stress

The 3rd Panel of the Superior Labour Court (TST) upheld a ruling ordering an employer to pay additional hazard compensation to a tyre repair worker who was recurrently exposed to excessive heat, without ventilation and without the provision of personal protective equipment. The expert report found that there were no effective measures in place to neutralise the heat, which exceeded the permissible limit for activities involving heavy physical effort. Source: TST

Economic Group. Transfer of employee to another group company with a different economic activity declared void

The São Paulo Regional Labour Court (TRT SP) annulled the transfer of an employee linked to a bank to another company within the same corporate group, on the grounds that the measure was intended to avoid the payment of rights inherent to the banking professional category, thereby constituting fraud against labour legislation. According to the decision, the employee was transferred while continuing to perform the same activities, at the same establishment and under the same management, which characterised the alleged fraud. Source: TRT SP

Equal Pay Law Upheld

The Federal Supreme Court (STF) concluded the judgment of actions filed by collective entities challenging the validity of Law No. 14,611/2023. In its ruling, the Court acknowledged the constitutionality of the law and reaffirmed the obligation of companies and institutions employing 100 or more employees to publish pay transparency reports and action plans aimed at addressing pay inequalities not arising from the statutory exceptions, subject, however, to compliance with the Brazilian General Data Protection Law (LGPD) through the anonymisation of the disclosed information. Source: STF

Diversity and Inclusion. Persons with Disabilities (PWD). Reinstatement denied in companies with fewer than 100 employees

The 4th Panel of the Rio Grande do Sul Regional Labour Court (TRT 4) rejected a request for reinstatement filed by a PWD employee on the grounds that the employer was not required to comply with the statutory hiring quota, since the total number of employees at the two group companies using the services of the PWD employee did not reach the minimum threshold required for such obligation. Source: TRT 4

Recognition as Professional Experience

Bill No. 2,762/2019 was vetoed by the Presidency of the Republic. The bill provided for internship periods to be counted as professional experience and to be taken into consideration in public examination assessments. According to the Executive Branch, the proposal distorted the educational nature of internships and was unconstitutional, as it infringed upon the autonomy of States and Municipalities to regulate the matter. The veto will now be reviewed by the National Congress, which may either overturn or uphold it. Source: Chamber of Deputies

Labour Enforcement Proceedings. Jurisdiction to hear incidents involving shareholders of companies under judicial reorganisation

The Superior Labour Court (TST) established the precedent that the Labour Courts have jurisdiction to process and adjudicate incidents involving the piercing of the corporate veil (IDPJ) concerning companies undergoing judicial reorganisation, even after the amendments introduced by Law No. 14,112/2020 to the Brazilian Bankruptcy Law (Law No. 11,101/2005). The Court also held that, to redirect enforcement proceedings against shareholders, proof of abuse of corporate personality is required, pursuant to Section 50 of the Civil Code. Source: TST

Labour Enforcement Proceedings. Two-year limitation period for liability of withdrawing shareholder does not apply to withdrawals prior to the current Civil Code

The 9th Panel of the São Paulo Regional Labour Court (TRT SP) ordered the inclusion of a former shareholder as a defendant in labour enforcement proceedings, holding that the two-year liability period following withdrawal from the company, as established both by the 2002 Civil Code (effective from 11 January 2003) and the Labour Reform Act (effective from 11 November 2017), does not apply where the withdrawal occurred before those rules entered into force. In the case at hand, the former shareholder had left the company in 2000, prior to the enactment of the provisions establishing the two-year period. Accordingly, liability should be assessed in accordance with the legislation in force at the time of withdrawal, precluding retroactive application of the law. Source: TRT SP

Occupational Health and Safety. Divergence between Medical Reports

The 2nd Chamber of Campinas Regional Labour Court (TRT 15) ordered a new medical expert examination in labour proceedings due to discrepancies identified between expert reports. The labour expert report ruled out a causality link between the employee’s medical conditions and his professional activities; however, the report produced in social security proceedings recognised the existence of a repetitive strain injury with causality nexus and permanent incapacity. In the Court’s view, the labour expert evidence was insufficient because it failed to address the conflicting conclusions and presented significant inconsistencies in relation to the social security report. Source: TRT 15

Occupational Health and Safety. Psychosocial Risk Management

The Ministry of Labour and Employment published a “Questions and Answers” tutorial to clarify employers’ doubts regarding the application of occupational health and safety rules, with emphasis on psychosocial risk factors provided for under NR 01, which will become subject to inspection from 26 May 2026. The regulation applies to all companies and institutions, regardless of the number of employees hired, and non-compliance may result in fines and other significant administrative sanctions.

Working Hours. End of the 6×1 Shift Pattern

Amendment No. 01 to Proposed Constitutional Amendment (PEC) 221/2019 was submitted to the Federal Senate, providing for a gradual reduction, over a period of up to 10 years, of the weekly working hours limit from the current 44 hours to 40 hours. Under the terms of the amendment, the reduction in working hours would be conditional upon the enactment of a supplementary law establishing transitional criteria, as well as sector-specific collective bargaining. The text also proposes tax incentives for employers who create new jobs to accommodate the changes to working time rules. The amendment will now proceed through the legislative process for consideration by the National Congress before presidential approval. Source: Federal Senate