ARTICLE · 11 OCTOBER 2017

New Guidelines On Service Outsourcing And Temporary Work

Mattos Engelberg

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Nowadays, in the absence of specific legislation on service outsourcing, Labor Courts have been ruling the matter,

BrazilEmployment and HR

Mattos Engelberg

On Wednesday, March 3rd, 2017, the Brazilian Chamber of Deputies approved the main text of Draft Law no. 4,302 from 1998, which discusses service outsourcing and temporary work. The draft, which was presented by the Executive Branch in 1998, is still pending presidential sanction, so it can enter into force.

Nowadays, in the absence of specific legislation on service outsourcing, Labor Courts have been ruling the matter, especially through Precedent no. 331 from the Superior Labor Court, which restricts service outsourcing to three specific situations: temporary workers service agreements, security and cleaning, as long as these are non-core activities, meaning, activities that are not essential to the development of the company's corporate object.

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