Labour & Employment | Edition 31

16.07.2026

Key Highlights

Collective Bargaining. Continued Effect of Collective Agreements

The Labour Committee of the Chamber of Deputies discussed Bill No. 3,015/2025, which proposes reinstating the continued effect of collective bargaining agreements after their formal expiry. If enacted, the proposal would allow collectively agreed terms and conditions to remain in force until replaced by a new collective agreement or by a judicial ruling. Since the 2017 Labour Reform, this principle has no longer been recognised under Brazilian law, including by the Federal Supreme Court (STF). Should the Bill be approved, it could significantly alter the dynamics of collective bargaining by preserving negotiated benefits indefinitely and limiting employers’ ability to renegotiate employment costs and working conditions in future negotiations, thereby reducing employers’ bargaining flexibility. Source: Chamber of Deputies.

Dismissal for Gross Misconduct. Forged Medical Certificate

The Labour Court of Mato Grosso do Sul (TRT 24) upheld the dismissal for gross misconduct of an employee who submitted a forged medical certificate to justify absences from work. The Court held that the fraud was established after the attending physician confirmed that the certificate had not been issued by him, amounting to an act of dishonesty that irreparably undermined the trust required for the continuation of the employment relationship. The decision highlights the importance of employers implementing appropriate procedures to verify the authenticity of medical certificates where irregularities are suspected and properly documenting internal investigations before imposing disciplinary sanctions, thereby reducing the risk of future legal challenges. Source: TRT MS.

Dismissal for Gross Misconduct. Racism. Homophobia. Sexism

The Third Labour Court of São Caetano do Sul, São Paulo, upheld the dismissal for gross misconduct of a sales representative who used a company-issued mobile phone to exchange messages containing racist, homophobic, sexist, offensive and sexually explicit content directed at colleagues and managers. The Court concluded that such conduct amounted to serious misconduct, being fundamentally incompatible with the standards of civility and mutual trust expected within the employment relationship. It also rejected the employee’s privacy argument, noting that the messages had been exchanged using a corporate device provided exclusively for business purposes, over which the employer was entitled to exercise reasonable monitoring. The decision underlines the importance of clear policies governing the use of company equipment, together with effective diversity, inclusion and anti-discrimination programmes. Source: TRT SP.

Employment Rights. Foster Care Leave

The Senate’s Committee on Social Affairs (CAS) approved Bill No. 3,420/2025, proposing amendments to the Brazilian Labour Code (CLT) to grant employees three days of paid leave when welcoming a child or adolescent into foster care. The proposal aims to facilitate the child’s initial integration into the family environment while encouraging greater participation in foster care programmes, which are prioritised under the Child and Adolescent Statute (ECA) over institutional care. Unless appealed for consideration by the Senate Plenary, the Bill will proceed to the Chamber of Deputies. Source: Federal Senate.

Gender Equality. Domestic Violence. Use of the Perpetrator’s FGTS Funds

The Chamber of Deputies’ Committee for the Defence of Women’s Rights approved Bill No. 5,525/2025, which would allow funds held in the FGTS account of a perpetrator of domestic violence to be used to satisfy final court judgments awarding compensation to victims. Under the proposal, withdrawals from the FGTS account administered by Caixa Econômica Federal (CEF) would require an express court order and would be available solely to ensure the effective enforcement of judicial decisions. The Bill will now be reviewed by the Labour Committee, the Finance and Taxation Committee and the Constitution, Justice and Citizenship Committee before being submitted to the Federal Senate. Source: Chamber of Deputies.

Mental Health. Psychological Support Following a Traumatic Workplace Event

The Labour Court of Minas Gerais (TRT MG) upheld an award of compensation against an employer that failed to provide adequate psychological support to an employee who witnessed a suicide in the workplace during working hours. Although the employer maintained an institutional employee assistance programme, the Court found that merely making a generic support channel available was insufficient to discharge its duty to safeguard employees’ health and safety following an incident with significant psychological impact. The judgment reinforces the expectation that employers should adopt concrete and effective measures to provide psychological support and promote employee wellbeing following traumatic workplace events. Source: TRT MG.

Occupational Disease. Covid-19

The Second Panel of the Brazilian Superior Labour Court (TST) reinstated a judgment ordering a company to compensate a long-haul lorry driver who contracted Covid-19 whilst undertaking an extended business trip. The Court considered that the employee’s duties required him to travel across several Brazilian states for more than a month, regularly interacting with third parties at fuel stations and roadside facilities, thereby creating a presumption that the infection was work-related, particularly in the absence of adequate preventive measures. The ruling highlights the importance of employers implementing and documenting effective occupational health and safety measures, especially where employees are exposed to heightened risks of infectious diseases as part of their duties. Source: TST.

Sports Law. Employment Liability in Player Loan Agreements

The Regional Labour Court of Goiás (TRT GO) ruled that a football club loaning a player to another club is not liable for employment obligations arising during the loan period. According to the Court, responsibility transfers to the receiving club, which assumes control over the player’s day-to-day activities and therefore becomes responsible for salary payments and compliance with employment obligations throughout the loan. The decision highlights the importance of clearly allocating responsibilities within player loan agreements to minimise employment-related disputes and legal risks, particularly given the growing use of loan arrangements in Brazilian football. Source: TRT GO.

Sports Law. Football Corporations (SAFs). New Corporate Governance Requirements

Law No. 15,427/2026 has entered into force, introducing new governance and transparency requirements applicable to Brazilian Football Corporations (Sociedades Anônimas do Futebol – SAFs). Among the principal changes, the legislation requires enhanced disclosure regarding shareholders and ownership structures, while mandating the appointment of independent members to both the board of directors and the supervisory board. The new framework also seeks to reduce conflicts of interest, strengthen investor protection and clarify the responsibilities of directors and controlling shareholders. Existing SAFs, together with clubs intending to adopt this corporate model, should therefore review their constitutional documents, shareholders’ agreements, governance policies and disclosure procedures, particularly in connection with investment, acquisition, disposal and corporate restructuring transactions. Source: Chamber of Deputies.

Workplace Accident. Employer Not Held Liable

The Labour Court of Minas Gerais (TRT MG) dismissed a claim against a transport company arising from a road traffic accident involving a professional driver, finding that the incident resulted solely from the employee’s own negligent conduct. The Court found no evidence of employer fault or of any causal link between the accident and the working conditions provided. The decision reaffirmed that, whilst employers have a duty to provide a safe working environment, liability to compensate is not automatic whenever an accident occurs in the course of employment. Rather, compensation depends upon proof of employer fault, particularly where the employer can demonstrate that appropriate health and safety policies, training programmes and documented preventive measures had been implemented. Source: TRT MG.

Workplace Harassment. Misogyny. Discriminatory Dismissal

The Labour Court of Rio de Janeiro (TRT RJ) held that an employee of a religious institution was subjected to workplace harassment by a colleague and was subsequently dismissed as a consequence of the conflict arising from the very misconduct she had suffered. Although the employer was aware of the misogynistic abuse directed at the employee, it failed to take effective steps either to discipline the perpetrator or to protect the victim, instead opting to terminate her employment. The Court found a direct causal link between the psychological abuse and the dismissal, characterising the termination as discriminatory and abusive. The judgment reinforces employers’ duty to prevent, investigate and address workplace harassment, while ensuring that employees who report misconduct are protected against any form of retaliation. Source: TRT RJ.

Workplace Harassment. Repeated Abusive Conduct by Management

The Labour Court of São Paulo (TRT SP) upheld an award of compensation for moral damages in favour of an employee who had been subjected to repeated verbal abuse, insults and threats of physical violence by his manager. The Court found that the manager’s conduct exceeded the legitimate exercise of managerial authority, constituting workplace harassment and infringing the employee’s dignity. The decision serves as a reminder that employers may be held liable for abusive conduct by managers and supervisors unless effective preventive measures are in place. It also highlights the importance of implementing robust anti-harassment policies, providing leadership training and maintaining effective internal reporting channels to mitigate both employment and reputational risks. Source: TRT SP.1