News August 22, 2018

STF rules on unrestricted outsourcing this Wednesday (the 22nd)

Even one year after the law that allowed unrestricted outsourcing, nearly four thousand lawsuits challenging the hiring of employees for so-called core activities remain suspended and await the position of the Federal Supreme Court (STF) on the matter, which returns to the Court’s plenary this Wednesday, the 22nd. The justices will decide whether the Constitution permits this type of contract.

In 2017, the alternative was validated by the Outsourcing Law and reinforced in the Labor Reform. Even so, companies and workers continue to face conflicting decisions in the Labor Courts. According to specialists interviewed by Estadão/Broadcast, the STF ruling is expected to serve to pacify and standardize the issue.

 

Read also:
Labor reform: outsourcing, a competitiveness factor for family businesses

 

Previously, a precedent of the Superior Labor Court (TST) was in force, under which hiring was only permitted for functions that were not the company’s core activity. For example, an automaker could have outsourced workers in cleaning or security functions, but not on the production line. With the enactment of the Outsourcing Law, companies may hire outsourced workers for any function.

The actions on the STF’s agenda predate the changes introduced in 2017. There are 3,931 appeals on hold awaiting the STF ruling, according to data made available by the Supreme Court, updated as of August 13. They began to be suspended after the STF recognized, in 2016, the general repercussion of one of the actions to be ruled on by the justices this Wednesday. What the Court decides in this specific action, therefore, comes to apply to all other suspended cases.

See more here on the Federal Supreme Court website.

 

Sources: Estadão/STF

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