Topic 46 of the TST
Suspension of labor law statute of limitations during the pandemic.
The recent decision by the Superior Labor Court, established in what is known as Theme 46, brought an important warning to companies: the suspension of limitation periods during the Covid-19 pandemic also applies to labor lawsuits. In practice, this means that the period during which the deadlines were suspended should be disregarded in the calculation of the statute of limitations, extending the time in which workers can file claims. This is an understanding that directly impacts legal predictability and the management of labor liabilities.
What changes in the calculation of the statute of limitations?
In simplified terms, the statute of limitations for labor claims is the time period an employee has to file a lawsuit. With the pandemic, Law No. 14.010/2020 was enacted, temporarily suspending these time limits. The Superior Labor Court (TST), in its ruling on Topic 46, has established that this suspension also applies fully to labor relations, which could "revive" discussions that companies considered closed due to the passage of time.
Increased risk of labor litigation.
In practice, this increases the risk of litigation. Companies may be surprised by lawsuits involving old contracts, especially those terminated during or shortly before the pandemic. For example, a former employee dismissed in 2019, whose statute of limitations would be nearing its end in 2020, may still have the right to file a lawsuit due to the suspension. This requires a careful review of the labor contingency management strategy.
Impacts on labor liabilities and accounting provisions
Another relevant point is the impact on liability provisions. Many companies use the statute of limitations criterion to close provisions or reduce accounting risks. With this decision linked to Topic 46, it is necessary to reassess these criteria, as potentially time-barred processes may resurface, affecting balance sheets and financial planning.
Preventative measures for companies
Given this scenario, it is essential that companies adopt a proactive approach. It is recommended to review policies for storing employment documents, ensuring that records of contracts, work schedules, payments, and communications are available for a period longer than traditionally adopted. Furthermore, it is important to reassess old cases with potential legal risk, especially terminations that occurred close to the pandemic period.
Integration between HR and legal departments in risk management.
It is also prudent for HR and legal departments to work together, reviewing defense strategies and settlement criteria. In many cases, anticipating an amicable solution can be more efficient than facing a lawsuit with evidence weakened by time.
Importance of specialized legal advice
In the face of significant changes like this, having specialized legal counsel makes all the difference. Our firm has an experienced team in the strategic analysis of labor liabilities, risk review, and definition of preventive measures, helping companies to protect themselves legally and make sound decisions in an increasingly dynamic environment. Contact us and find out how we can support your company.
Article written by: Rafael Mello, Israel Cruz and Ana Vasconcelos.
“"The pandemic has had effects that are still being felt in the Judiciary, and this decision is a clear example of how the impact concretely reaches companies."”