By: Rafael Mello and Israel Cruz

In a significant decision for the ride-hailing sector, the 72nd Labor Court of São Paulo, when judging a Public Civil Action brought by the Public Labor Ministry (MPT) against 99, decided that there is no employment relationship between the ride-hailing company and its drivers.

This lawsuit is one of eight public civil lawsuits filed by the MPT against several transportation and delivery app companies, including Uber and Rappi. The MPT seeks recognition of the employment relationship for drivers and delivery people of these companies, in addition to compensation for collective moral damages.

The judge's decision was based on the drivers' autonomy in providing services. According to the judge, drivers have the freedom to refuse trips, decide when they want to work, and even turn off the app whenever they want. This autonomy, according to the judge, indicates that the relationship between drivers and 99 does not fit the traditional definition of employment.

The decision is an important milestone in the discussion about the nature of the employment relationship in the context of ride-hailing apps. The issue of the employment relationship between drivers and ride-hailing companies has been the subject of intense debate.

It is worth noting that the aforementioned decision is in line with the recent single-judge decision by Minister Alexandre de Morais, who overturned a ruling by the 11th Panel of the Regional Labor Court of Minas Gerais (TRT-MG), dismissing the employment relationship recognized by the TRT-MG and ordering the transfer of the case to the ordinary courts.

It is worth mentioning that the decision was handed down in March 2023, however it was only published this month after the request for removal of confidentiality by 99. It is true that the MPT has already filed an Ordinary Appeal against the sentence in question.

There are currently an estimated 1.5 million ride-hailing drivers, delivery drivers and motorcycle taxi drivers in Brazil. The decision by the 72nd Labor Court of São Paulo could have significant implications for these workers and for the future of the ride-hailing sector in the country.