Overview

• Minister Gilmar Mendes held a public hearing on October 6 with 78 speakers from government, business, unions and academia to debate contracting workers as legal entities.
• Attorney General Jorge Messias warned that the practice weakens social protection and estimated losses of about R$44 billion to INSS and FGTS from 2022 to 2024.
• Labor inspection testimony reported roughly 4.4 million dismissed workers became MEIs between January 2022 and July 2025, with more than half continuing the same roles for the same companies.
• Participants split over whether PJ arrangements reflect legitimate flexibility or concealed employment, and proposals included objective fraud criteria, a vulnerability-based burden of proof, and progressive taxation for PJs.
• Roughly 34,700 labor cases remain frozen by an April order awaiting an STF ruling with nationwide effect, and no date has been set for the judgment.