By: Rafael Mello and Israel Cruz

Justice Dias Toffoli of the Federal Supreme Court (STF) has decided to suspend the progress of all proceedings that deal with the inclusion of companies from the same economic group in the execution phase of the labor conviction, which did not participate in the evidence production and judgment phase. This decision was made in Extraordinary Appeal (RE) 1387795, which has recognized general repercussions (Topic 1,232).

Minister Toffoli noted that the issue has been the subject of discussion in the Labor Court for more than two decades and generates significant legal uncertainty, having argued that the resolution of the controversy by the STF will have a direct impact on numerous labor claims, with relevant social and economic consequences.

Minister Toffoli also highlighted that, in many cases, there has been a seizure (attachment, seizure and sequestration) of the assets of companies that did not participate in the knowledge process and that did not have the opportunity to previously express their views on the requirements for the formation of the labor economic group.

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