ARTICLE · 11 AUGUST 2015

New Adjustment Index Will Make Labor Lawsuits Even More Onerous

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A new index was set to adjust the amounts involved in labor lawsuits pending before the Brazilian Labor Courts, which will make them even more onerous for the debtors.

BrazilEmployment and HR

Marcello Della MôNica Silva

Leonardo Aurélio Pardini

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A new index was set to adjust the amounts involved in labor lawsuits pending before the Brazilian Labor Courts, which will make them even more onerous for the debtors. At a trial held on August 4, 2015, the Superior Labor Court, following a decision of the Federal Supreme Court, ruled that the credits of labor lawsuits will now be adjusted according to the inflation, and no longer by the Referential Rate (Taxa Referencial - TR).

The Special Broad Consumer Price Index [Índice Nacional de Preços ao Consumidor Amplo Especial - IPCA-E], calculated by the Brazilian Institute of Geography and Statistics [Instituto Brasileiro de Geografia e Estatística - IBGE], was chosen by the Superior Labor Court to adjust labor debts.

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