Labor & Employment | Edition 4

26.09.2025

Key Highlights

Global Mobility – Employee Expatriation via U.S. Gold Card. On the 19th, the U.S. Presidency issued an Executive Order creating the “Gold Card” residency program, which significantly increases the costs of obtaining residency in that country: USD 1 million if requested by individuals and USD 2 million if sponsored by the employer of the professional. The U.S. government also announced that companies based in the country wishing to hire highly qualified foreign workers through the H-1B visa program (such as in the high-tech sector) will now be required to pay USD 100,000 per year instead of the current USD 1,000.

Hourly Employees – Working Hours. The House of Representatives’ Labor Committee approved Bill No. 1,285/2025, which establishes continuous work schedules for hourly employees, with pay proportional to the number of hours worked. The approved text allows special schedules, provided that the legal limits are respected. Hourly employees will be entitled to a one-hour rest or meal break if the shift exceeds six hours, or a 15-minute break if it exceeds four hours. The Bill continues to be reviewed by other committees and will subsequently be sent to the Senate for final approval.

Labor Enforcement – Search for Funds in Betting Websites. The 6th Chamber of the Regional Labor Court of Campinas denied a creditor worker’s request against a transportation company and its partners, in which he insisted on seeking funds from the defendants in betting websites, hoping to locate assets that could be seized.

Legal Aid Granted Only in the Enforcement Stage – Obligation to Pay Attorneys’ Fees. The 5th Panel of the Superior Labor Court (TST) ruled that legal aid granted to a professor during the enforcement stage of a labor judgment will only take effect from the date the request was filed, which in this case occurred solely at that stage, after the judgment had already become final. In practice, the professor must pay attorneys’ fees to his former employer since, according to the TST, the granting of the benefit has prospective effects and does not retroactively alter a final decision.

Moral Harassment – Suspension Following Medical Leave. The 8th Panel of the Regional Labor Court of Rio Grande do Sul increased the damages awarded against a company for moral harassment suffered by an employee who was repeatedly insulted by his supervisor upon returning from medical leave. According to the Court, the seriousness of the conduct was evidenced by the fact that the employee frequently took time off to address psychological issues and to undergo treatment following the removal of a tumor. On one occasion, the employee suffered a panic attack inside the company and received no assistance. Upon returning from leave, he was suspended by another superior.

Social Security Contributions – Noise Exposure Surcharge. Bill of Legislative Decree (PDL) No. 106/25 has been introduced in the House of Representatives to suspend the current authorization allowing the collection of additional social security contributions from companies that expose their employees to noise, even if effective personal protective equipment (PPE) is provided. The authorization stems from Interpretative Declaratory Act No. 2/19 of the Federal Revenue Service, which enables an additional charge of 6%, 9%, or 12% on the remuneration of workers exposed to harmful conditions, with the funds allocated to special retirement benefits. In addition to suspending the Act, the PDL proposes that the Federal Revenue cancel all ongoing collections related to this matter.

Special Employment Contract – Researchers. The Senate’s Education Committee approved Bill No. 1,104/2023, which creates a special employment contract to encourage the hiring of researchers. Under the Bill, the hired researcher must work in his or her field of study. The aim is to stimulate the hiring of master’s and doctoral students by companies and to foster integration between academia and the productive sector. According to the approved text, graduate students (master’s, doctoral, and post-doctoral) may enter such contracts in writing and for a fixed term (corresponding to their enrollment in a graduate or post-doctoral program in Brazil). Positions will be designated as “hired graduate researcher” and “hired post-doctoral researcher.” The researchers will be entitled to a stipend equal to or higher than that paid by public funding institutions. The Bill now proceeds to the House of Representatives unless a request is made for a Plenary vote.

Workplace Racism – Damages Award. The 4th Chamber of the Regional Labor Court of Campinas overturned a lower court ruling and ordered a logistics and transportation company to pay BRL 30,000 in moral damages as a result of racially motivated harassment against an employee who was subjected to offensive remarks by his supervisor.