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ARTICLE · 29 NOVEMBER 2024

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Applying The Labor Reform To Ongoing Employment Contracts

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On November 25, 2024, Brazil's Superior Labor Court (TST) ruled that the Labor Reform (Law 13,467/2017) had immediate effect on ongoing employment contracts...

BrazilEmployment and HR

On November 25, 2024, Brazil's Superior Labor Court (TST) ruled that the Labor Reform (Law 13,467/2017) had immediate effect on ongoing employment contracts, but only to facts occurring after the law's effective date of November 11, 2017. The court reached this majority decision in a Repetitive Appeals Incident (IRR), establishing a binding precedent (Topic 23) to be followed by the entire Labor Justice system.

I. Case Study: Horas in Itinere

The judgment involved a worker from JBS S.A. in Porto Velho (RO), who sought payment for horas in itinere — the time spent commuting using company-provided transportation, which had previously been considered time at the employer's disposal, prior to the Labor Reform. When the Labor Law entered into force, this obligation was eliminated. The main issue at question was whether the new rule would apply to contracts established before the reform.

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This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.

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