Brazilian Labor Law: Labour Court Jurisdiction and Key Principles
Constitutional Amendment No. 45/04
Following the enactment of Constitutional Amendment No. 45/04 by the National Congress on December 8, 2004, the jurisdiction of the Labour Court was expanded under Article 114 of the 1988 Constitution.
The Labour Court’s jurisdiction was extended to adjudicate all actions arising from the employment relationship, not just those governed by the Consolidation of Labor Laws (CLT).
Article 114 affirmed the normative power of the Labour Court and assigned it new responsibilities. These include:
- Hearing cases on union representation.
- Adjudicating actions resulting from strikes.
- Handling claims for moral or material damages arising from the employment relationship.
- Reviewing processes related to administrative penalties imposed on employers by labor inspectors.
Furthermore, the Labour Court is now competent to judge writs of mandamus, habeas corpus, and habeas data when the contested act falls within its subject matter jurisdiction.
The Relationship Between Employment and Work
The concepts of ’employment’ and ‘work’ are no longer synonymous. Work is tied to the task performed, aimed at growth and professional development. In contrast, a job is often seen merely as a guarantee of a salary at the end of the month, coupled with the expectation of potential financial gain from the Labour Court after or even during the contract.
If such a legal claim does not succeed, there are often no significant costs or repercussions for the claimant. This raises the question: who is concerned about tarnishing their professional image with a lawsuit that may lack merit? The prospect of a quick and easy profit through a legal settlement can seem more appealing than the arduous task of building a solid career and a good reputation in the labor market.
General Principles of Labor Law
1. Principle of Protection
This principle acknowledges the employee’s vulnerable position and is divided into three sub-principles:
- In Dubio Pro Operario: When in doubt, the interpretation should favor the employee.
- Principle of the Most Favorable Rule: When multiple rules apply, the one most favorable to the employee should be used.
- Principle of the Most Beneficial Condition: Contractual clauses can only be altered if the new conditions are more beneficial to the employee.
2. Principle of Inalienability of Labor Rights
Labor rights are inalienable. Employees cannot waive fundamental rights such as holidays, the 13th salary, etc.
3. Principle of Continuity of the Employment Relationship
The general rule is that employment contracts are for an indefinite term. Fixed-term contracts are the exception.
4. Principle of Primacy of Reality
This principle establishes that the reality of the facts of the employment relationship prevails over any formal documents or agreements.
Prescription in Labor Law
Concept: Prescription is the loss of the right to file a claim in court due to the passage of time.
In Brazilian labor law, there are two main prescription periods based on Article 7, XXIX of the Federal Constitution and Article 11 of the CLT.
- A worker has up to two years after the termination of the employment contract to file a lawsuit.
- The lawsuit can only claim rights from the last five years, counted backward from the date the lawsuit was filed.
Legal Grounds
Article 7, XXIX of the Federal Constitution
Art. 7: The following are rights of urban and rural workers, in addition to others that aim to improve their social condition:
XXIX – action, as to credits resulting from employment relationships, with a statute of limitations of five years for urban and rural workers, up to the limit of two years after the termination of the employment contract;
Article 11 of the CLT
Art. 11: The right to file a claim regarding credits arising from employment relationships prescribes in:
I – five years for the urban worker, up to the limit of two years after the termination of the contract;
II – two years after the termination of the contract for the rural worker.
§ 1: The provisions in this Article shall not apply to actions that have as their object annotations for evidence with the Social Security. (Wording given by Law No. 9,658 of 06/05/98.)
§ 2: (Vetoed).
§ 3: (Vetoed).
See also: TST Precedents S. 6, IX, 114, 153, 206, 268, 275, 294, and 308.