Labour & Employment | Edition 30

06.07.2026

Key Highlights

Collective Bargaining. Restrictions on Exclusion from Health Insurance Plans. The Specialised Collective Disputes Section (SDC) of the Superior Labour Court (TST) partially invalidated a collective agreement provision excluding employees retired on grounds of permanent disability from the sector’s health insurance plan. According to the Court, retirement due to permanent disability places employees in a particularly vulnerable position, with both their physical and mental health affected by their inability to work, making continued health insurance coverage essential to safeguarding the fundamental right to health. Source: TST

DE&I. Transgender Identity. Failure to Respect Gender Identity. The 9th Labour Court of the East Zone of São Paulo recognised the constructive dismissal of a transgender cashier and ordered a retail chain to pay compensation for moral damages due to its failure to respect the employee’s chosen name and gender identity. According to the decision, the employee’s hiring records were incorrectly entered into the company’s internal systems, and witness evidence confirmed that the employee was provided with a female uniform despite his male gender identity. Source: São Paulo Regional Labour Court (TRT-SP)

Discriminatory Dismissal. Visual Impairment. The 17th Panel of the São Paulo Regional Labour Court (TRT-SP) found that the dismissal of an employee with low vision was discriminatory and ordered a health insurance provider to pay compensation in lieu of reinstatement after terminating her employment immediately following the deterioration of her ophthalmological condition. The Panel also found evidence of organisational workplace harassment and ordered the company to pay compensation for moral damages. Source: TRT-SP

Employment Relations. Apprentice Hiring Quota. The 2nd Panel of the Superior Labour Court (TST) upheld a decision requiring a security company to calculate its apprentice quota by taking into account all positions, including security guard roles. According to the Labour Prosecution Office (MPT), the company employed more than 2,000 workers but had only four active apprentices. The decision follows the TST’s established position that security guard roles must be included in the quota calculation because the position does not require higher education or technical qualifications, which are the statutory grounds for exclusion. Source: TST

Employment Relations. Misclassification of Employment as Independent Contractor Status. Justice Gilmar Mendes of the Federal Supreme Court (STF), in an individual decision, lifted the suspension of labour proceedings concerning the misclassification of employees as independent contractors through legal entities (“pejotização”). As a result, these proceedings may now continue before the lower labour courts, including the production of evidence at hearings and the adjudication of cases that had been stayed. Any new suspension may only occur after the completion of proceedings before the Regional Labour Courts (second instance) and until the Federal Supreme Court issues a final judgment in the leading case under Theme 1389. Source: STF

Gender Equality. Discrimination in Management Positions. The 3rd Panel of the Superior Labour Court (TST) upheld a decision ordering an industrial company to implement measures promoting women to management positions. The Court found that all managerial roles were occupied exclusively by men without any objective selection criteria, rejecting the company’s argument that appointments were based solely on merit. Source: TST

Gig Economy. Decent Work on Digital Platforms. Member States of the International Labour Organization (ILO) approved the first international standard aimed at promoting decent work in the digital platform economy. The new Convention on Decent Work in the Platform Economy establishes minimum protection standards for individuals providing services through apps and other digital labour platforms. Its main provisions include: (i) guaranteeing freedom of association and the right to collective bargaining; (ii) promoting safe and healthy working conditions; (iii) preventing occupational accidents and diseases; and (iv) adopting measures to ensure remuneration consistent with the minimum standards established in each country. The Convention also provides for measures to combat child labour, forced labour and other forms of exploitation, as well as mechanisms enabling workers to challenge decisions affecting them and rules governing the reimbursement of expenses incurred in providing services. Source: ILO

Occupational Health and Safety. Armed Security at Toll Plazas. The 7th Panel of the Superior Labour Court (TST) upheld a decision in a Public Civil Action brought by the Labour Prosecution Office (MPT) requiring a motorway concessionaire to maintain uninterrupted armed security at all toll plazas, subject to a daily fine for each location operating without a security guard. The Panel also upheld the award of compensation for collective moral damages due to a series of robberies at the sites and the exposure of employees to hazardous situations. Source: TST

Occupational Health and Safety. Psychosocial Risks. The 9th Federal Civil Court of São Paulo granted an interim injunction in favour of the Federation of Industries of the State of São Paulo (FIESP), suspending the fines and sanctions established under NR-1 of the Ministry of Labour and Employment (MTE) relating to employers’ obligations to identify, manage and prevent psychosocial risks arising from work. Under the injunction, entities affiliated with FIESP are temporarily entitled to challenge any fines imposed by labour inspectors during workplace inspections. However, they remain legally required to comply with the provisions of the regulation. Source: Federal Court of São Paulo

Occupational Health and Safety. Psychosocial Risks. The Federal Supreme Court (STF) suspended for 90 days the application of fines and administrative sanctions relating to psychosocial risks under NR-1 issued by the Ministry of Labour and Employment (MTE). The measure will remain in force while the Court seeks a conciliatory solution to establish clearer compliance criteria. Nevertheless, employers that have not obtained a favourable interim injunction in judicial proceedings remain subject to the obligation to manage mental health risks in the workplace. Source: STF

Working Time. Sunday Rest for Women. The Specialised Collective Disputes Section (SDC) of the Superior Labour Court (TST) upheld the invalidity of a collective bargaining agreement clause that limited Sunday rest to once every three weeks for both men and women. The Court held that, under Brazilian labour legislation, women are entitled to a Sunday rest period every fifteen days and that this statutory protection cannot be waived through collective bargaining. Source: TST

Workplace Harassment. Depression. The 1st Panel of the Superior Labour Court (TST) upheld a decision ordering a company to reinstate an employee who had been hospitalised several times due to severe depression and suicidal ideation. The employee was dismissed eight days after returning to work following his most recent hospitalisation. According to the Court, given the seriousness of the illness and the stigma associated with it, the employer’s conduct fell within the presumption of discriminatory dismissal established by the Court’s settled case law. Source: TST

Workplace Harassment. Productivity Rankings. The 6th Panel of the Superior Labour Court (TST) ordered a financial institution to pay compensation for moral damages to a manager after circulating productivity rankings that caused embarrassment. According to the Court, the rankings, distributed by email, displayed the performance and position of each employee, resulting in public exposure that exceeded the limits of respect for employees’ dignity. Source: TST

Workplace Harassment. Xenophobia. The 3rd Panel of the Superior Labour Court (TST) upheld a decision ordering an automotive manufacturer to pay compensation to a former team leader who was the victim of xenophobia and workplace harassment. The Court held the employer liable for failing to take action against the abusive conduct of a subordinate, which resulted in the employee developing severe depression. Source: TST