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Supreme Federal Court Holds Public Hearing on 'Pejotização' Hiring Practices

The session gathers selected experts to help the court define when contracting workers as legal entities is permissible.

Overview

  • Minister Gilmar Mendes convened the hearing under ARE 1532603 after suspending all related cases nationwide in April 2025, and the cases will remain paused until the court issues a ruling with no trial date set.
  • The proceeding runs from 8:00 to 19:00 with 48 speakers, each allotted seven minutes, selected from 508 applicants based on expertise and relevance.
  • Opening remarks highlighted the need to balance worker protection with economic freedom and to consider effects on social security and tax revenues.
  • Early speakers include Subprosecutor-General Luiz Augusto Santos Lima and Solicitor General Jorge Messias, with Labor Minister Luiz Marinho participating in the opening.
  • Debate topics include whether labor courts have jurisdiction over alleged fraud in civil or commercial contracts, the lawfulness of PJ or autonomous hiring, and which party bears the burden of proof, set against a surge in PJ arrangements since 2017 and 1.2 million outsourcing-related claims since 2020.