Publications

Death benefits can be seized to settle labor debts: warning to companies and partners.

October 15, 2025

A recent decision of Superior Labor Court (TST) The court ordered the seizure of funds received as a survivor's pension by a company partner to settle the company's labor debts. The case drew attention because it involved funds traditionally considered to be of an alimentary nature, which, in theory, would make them unseizable. However, the Court understood that, given the absence of other assets subject to execution, and considering the partner's responsibility for the company's debts, the exceptional measure was legitimate. The decision reinforces an important warning for business owners and managers about the risks of asset disorganization and the lack of adequate legal protection. 

The exemption from seizure of funds such as retirement and pension benefits, as stipulated in the Code of Civil Procedure, has exceptions. One of these exceptions occurs when the beneficiary of the funds has direct responsibility for the debt being enforced, and the amount received is not absolutely essential to their subsistence, especially when there are labor credits to be paid, which are also of an alimentary nature. In the case in question, the partner was being subsidiarily sued for debts of the company in which she participated, and no other assets subject to seizure were located. Therefore, the principle of the effectiveness of the enforcement and the dignity of the worker prevailed. 

This decision represents an important milestone and signals that the courts have been admitting more incisive measures to ensure the payment of labor-related debts, even if this implies reaching the personal assets of partners, heirs, and beneficiaries of income previously considered protected. For companies, this scenario increases the importance of preventive legal and financial management, with attention to the regularity of labor relations, a well-structured corporate constitution, and the correct separation of assets between the company and its partners. 

From a practical standpoint, it is essential that managers are aware of the partners' liability in labor lawsuits. Disregarding the legal personality of a company is increasingly common, and situations such as the absence of company assets, irregular dissolution, or mismanagement significantly increase the risk of the partners' personal assets being affected. Therefore, practices such as maintaining transparent accounting, respecting labor rights, formalizing corporate acts, and adopting governance measures are indispensable. 

To reduce risks, it is advisable to periodically review the company's articles of association, profit distribution policy, and the structure of liability among partners. Furthermore, it is crucial to document decisions and ensure that labor obligations are being met promptly, mitigating the chance of future lawsuits. A labor compliance program can be a strategic differentiator. 

If your company has not yet taken steps to strengthen its governance and prevent the financial liability of its partners, now is the time. The current scenario demands a proactive approach and specialized legal advice to prevent unforeseen events from compromising the financial security of individuals and legal entities. 

Our firm has a highly qualified team to guide companies in corporate structuring, prevention of labor liabilities, and adoption of safe management practices. Contact us and find out how we can help protect your business and the assets of your partners against avoidable legal risks. 

If you have any questions about the topics covered in this publication, please contact any of the lawyers listed below or your usual Mazzucco&Mello contact.

Rafael Mello

+55 11 3090-9195

Israel Carneiro Cruz

+55 11 3090-9195

This communication, which we believe may be of interest to our customers and friends of the company, is intended for general information only. It is not a complete analysis of the matters presented and should not be considered legal advice. In some jurisdictions, this may be considered lawyer advertising. Please see the company's privacy notice for more details.

Related Areas

Related Professionals