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Politics
26 February 2025

TST Establishes 21 Binding Rulings On Labor Law

The Tribunal Superior do Trabalho aims to create clarity and efficiency with new labor law precedents.

The Tribunal Superior do Trabalho (TST) has recently taken significant strides to standardize labor law jurisprudence with the establishment of 21 binding legal theses during its February 24 session. This bold move is expected to create greater predictability and security for employers and employees alike, ensuring the consistent application of labor law throughout Brazil's judiciary.

Binding precedents are judicial decisions required to be followed by lower courts and judges faced with similar cases, effectively curtailing disputes over previously settled legal matters. By adopting these legal theses, the TST aims to eliminate unnecessary litigation and clarify the rights and obligations of parties involved in labor relations, thereby promoting efficiency within the justice system.

According to TST President Minister Aloysio Corrêa da Veiga, the court is not merely establishing rules but is reaffirming the significance of labor justice by providing clear guidelines for the interpretation and application of labor laws. He referred to this initiative as allowing the TST to become “a court of precedents” rather than simply re-evaluators of lower court decisions.

The binding theses cover a range of important labor issues. For example:

  • Payment of FGTS: Employers must deposit funds related to the Fundo de Garantia do Tempo de Serviço (FGTS) directly to the employee's linked account rather than paying them directly.
  • Women’s Interval Rights: The TST has reaffirmed the legality of Article 384 of the Consolidation of Labor Laws (CLT), which ensures rest breaks for women who work overtime, countering recent repurposing efforts during labor reform.
  • Resignation Laws for Pregnant Employees: A resignation request from pregnant employees will only be valid with proper oversight from labor unions or appropriate authorities.
  • Compensation for Labor Violence: Workers untrained for transporting currency must not be subjected to such tasks without safety provisions or else risk emotional distress claims.

The new binding theses also aim to tackle longstanding questions surrounding commission structures. For example, the TST ruled on how sales commissions should be treated when clients default on payments: “The employer cannot reclaim commissions from employees for cancelled sales due to customer non-payment.” This goes hand-in-hand with another decision ensuring sales commissions accrue on the total value of financed sales, ensuring employees are compensated for their full contributions.

According to various lawyers and experts consulted, these reforms and the emphasis on binding precedents are set to substantially impact the future of labor law practice. Rafael Caetano de Oliveira, of the Mattos Filho firm, expressed optimism, stating, “These binding precedents will reduce the number of repetitive lawsuits reaching the TST and provide clearer rights for employees.”

Legal analyst Marcus Brumano echoed similar sentiments, emphasizing the importance of these new rules for ensuring swift case resolution and bolstering legal confidence. He stated, “The new guidelines streamline decision-making by reinforcing previously established interpretations of labor law.”

Challenges remain, though. According to attorney Ricardo Calcini, the implementation of these new binding decisions signals the beginning of “new times” for labor justice, requiring a cultural shift among lawyers, arbitrators, and judges alike. This change entails adapting to the TST’s more structured procedural environment.

Another pivotal part of the TST’s effort for uniformity is the newly instituted Secretaria de Admissibilidade Recursal (Sear), which is responsible for managing cases submitted to the TST, facilitating the quick screening of precedents. By enhancing efficiency, Sear allows the court to focus on more complex issues requiring nuanced decision-making.

From the outset of his term, Minister Aloysio Corrêa da Veiga has pledged to prioritize precedent formation at the TST. “It is imperative to cultivate precedent culture, ensuring adherence across all levels of the judiciary,” he stated to Consultor Jurídico shortly after assuming his role.

The publication of the 21 binding theses marks the beginning of this commitment to not only improve labor relations within Brazil but also to create more equitable conditions for arbiter and labor transactions across the nation. With the advent of this comprehensive list of binding precedents, the TST hopes to eliminate many previously contentious issues and streamline justice within the labor court system.