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Brazil's Supreme Court limits automatic liability of companies within the same group in labor lawsuits.

October 30, 2025

The Brazilian Supreme Federal Court (STF), by majority vote, established an understanding in Extraordinary Appeal (RE) No. 1,387,795, with recognized general repercussion (Theme 1,232), rejecting the possibility of automatically including companies belonging to the same economic group in labor executions.

 

This decision is particularly relevant for the business community, as it eliminates joint liability based solely on the existence of a corporate relationship between companies, establishing the need for the company's effective participation from the outset of the lawsuit, and not just during the enforcement phase.

 

In the practice of Labor Courts, the habit of automatically including other companies within the economic group in the enforcement proceedings had become established, even if these companies were not part of the legal proceedings or the employment relationship under discussion. This interpretation significantly increased financial risks, as the mere recognition of the group was sufficient to establish liability in the enforcement phase.

 

The Supreme Federal Court's understanding brings greater legal certainty by establishing that mere corporate integration is not sufficient to justify labor liability for all companies within the group. The inclusion of other companies in labor court judgments can only occur if the company's effective participation in the process from the initial phase is proven or, exceptionally, when there is strong evidence of fraud, abuse of rights, or commingling of assets.

 

In this scenario, adopting sound governance practices, maintaining a clear separation between legal entities, and investing in labor compliance cease to be merely good management measures and become true instruments of legal protection.

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

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