STF suspends proceedings on the legality of service provision contracts across the country

STF suspende os processos sobre a licitude dos contratos de "pejotização" em todo o País

The Supreme Federal Court (STF) has decided to suspend, nationwide, all legal proceedings that question the legality of service provision contracts, commonly known as “pejotização”. The decision, issued by Justice Gilmar Mendes, aims to standardize the interpretation on the matter and ensure legal certainty.

The STF recognized the general repercussion of the issue when analyzing the Extraordinary Appeal with Aggravation (ARE) 1532603, which addresses jurisdiction and the burden of proof in cases involving alleged fraud in civil/commercial service contracts and the legality of hiring a legal entity or self-employed worker for this purpose.

Although the appeal addresses “pejotização” in franchise agreements, the Reporting Justice clarified that the discussion is not limited to this type of contract, due to the increasing number of cases on the topic being brought before the STF.

Justice Gilmar Mendes emphasized that many Constitutional Complaints have been filed against decisions by the Labor Court that restricted the freedom of productive organization, despite the understanding established by the STF in the ruling of ADPF 324, which has generated significant legal uncertainty.

The nationwide suspension is not an automatic consequence of the recognition of general repercussion, but rather a decision made by the reporting Justice of the extraordinary appeal. Justice Gilmar Mendes, in making this decision, considered the jurisdiction of the Labor Court to rule on cases involving fraud in civil service contracts; the legality of hiring self-employed workers or legal entities to provide services; and the burden of proof concerning the allegation of fraud in civil contracting.

With the suspension, the STF aims to prevent the multiplication of conflicting decisions on the subject, prioritizing legal certainty and fulfilling its constitutional role in resolving social conflicts.

Labor Law | CPDMA Team

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STF suspends proceedings on the legality of service provision contracts across the country

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