ARTICLE · 22 MARCH 2018

New Law Introduces Legally Binding Settlement Agreements

Ogletree, Deakins, Nash, Smoak & Stewart

Explore more from Ogletree, Deakins, Nash, Smoak & Stewart

Under recent amendments to Brazilian labor laws, parties may enter into legally binding settlement agreements through a new process whereby labor courts can ratify settlement agreements between employers ...

BrazilEmployment and HR

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Co-authored by Márcia Alyne Yoshida of Boccuzzi Advogados Associados

Under recent amendments to Brazilian labor laws, parties may enter into legally binding settlement agreements through a new process whereby labor courts can ratify settlement agreements between employers and employees. This change will give employers a useful means of reducing the risks that can arise from a termination of employment.

The new law, No. 13.467, came into effect at the end of 2017 and is aimed at modernizing labor laws that have been in effect since 1943. The new law caused much discussion regarding some of the amendments it made to the Brazilian Consolidation of Labor Laws. One such amendment was the provision that allows employers and employees to sign out-of-court settlement agreements with respect to employment rights and then submit these agreements for ratification by labor courts.

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