Brazil’s Supreme Court Forms Majority to Limit Union Assistance Fee Collections

Overview

• A majority of the Supreme Federal Court backed the prosecutor general’s appeal and aligned with Justice Gilmar Mendes to set boundaries on unions’ assistance fee charges.
• The framework bars retroactive collection for periods when the fee was considered unconstitutional, citing legal certainty and protection of legitimate expectations.
• Justices endorsed prohibiting interference by unions or employers with workers’ right to oppose deductions, with accessible channels required for filing objections.
• The court favored criteria that keep contribution amounts reasonable and proportionate to economic capacity, with definitions reflecting unions’ actual needs.
• Justice André Mendonça supported most of the package but urged prior, express, individual authorization for any deduction, a position not embraced by the other votes so far, as the virtual session runs to Tuesday night.