1. Home
  2. / Labor Legislation
  3. / The end of Uber, 99 and iFood? Labor Court challenges STF and forces apps to hire workers, threatening the future of the largest delivery and transportation platforms!
reading time 5 min read Comments 1 comments

The end of Uber, 99 and iFood? Labor Court challenges STF and forces apps to hire workers, threatening the future of the largest delivery and transportation platforms!

Written by Deborah Araújo
Published 05/12/2024 às 09:25
End of Uber, 99 and iFood Labor Court challenges STF and forces apps to hire workers, threatening the future of the largest delivery and transportation platforms!
Photo: Canva

JLabor court contradicts STF and reignites the controversy over employment relationships, generating uncertainty for drivers, delivery people and the largest transport and delivery platforms.

Are we close to the end of Uber, 99 and iFood? The controversy over the employment relationship between workers and app platforms has heated up again, with recent decisions by the Labor Court going against what had already been defined by the STF (Supreme Federal Court). While drivers and delivery people await an outcome, the situation is generating uncertainty for everyone involved, including the companies themselves.

Worker autonomy defines the relationship with applications

Since 2018, the STF has consolidated the understanding that there is no employment relationship between workers and application platforms such as Uber and 99. The main justification is flexibility offered by these companies: Drivers can choose their own schedules, decline rides, and even operate on multiple platforms at once.

In December 2023, the 1st Panel of the STF reaffirmed this position, highlighting the autonomy of drivers as one of the pillars of the business model of these platforms. According to the Supreme Court, the relationship does not meet the traditional criteria of the CLT (Consolidation of Labor Laws), such as subordination and exclusivity. However, even with the STF's clear position, the Labor Court has been moving in another direction.

Despite this, the STF has scheduled a public hearing for December 9 and 10, with the aim of discussing the possibility of recognizing the employment relationship. The hearing was called by Minister Edson Fachin, rapporteur of the appeal that addresses the relationship between workers and platforms. This event will bring together experts, company representatives and drivers to analyze the social and economic impacts of a possible change in the current model.

Labor Court challenges STF's understanding

In recent months, regional courts, such as the TRT of the 2nd Region (SP), have begun to issue decisions contrary to the understanding of the STF. A recent example involves the 2nd and 14th Panels of the TRT-2, which recognized employment relationships in cases involving Rappi and Levoo Technology applications.

Additionally, we bring Public civil actions (ACP) filed by the Public Ministry of Labor (MPT) against 99 and iFood are gaining strength. In the case of 99, the Labor Court in São Paulo denied the employment relationship to 99 drivers, in a decision made by the 3rd Panel of the TRT-2 last Tuesday (3). The judgment confirmed the previous sentence, from the 72nd Labor Court, issued in March 2023, which had already ruled out the existence of an employment relationship between the platform and the drivers.

In the case of iFood, the action will be resumed on Thursday (5). So far, two votes are against the application, while the third judge asked for more time for analysis.

STF also signals uncertainties on the topic

Despite having consolidated, in 2018, the understanding that there is no employment relationship between app drivers and platforms, the STF itself also signals uncertainty on the subject. Recently, Minister Edson Fachin called for a public hearing, scheduled for December 9th and 10th, to discuss exactly this issue.

The goal is to hear from experts, company representatives and workers to assess the possible economic and social impacts of any recognition of the employment relationship. This move reinforces the complexity of the debate and shows that even the Supreme Court is seeking to align its position regarding the new dynamics of digital work.

Impacts of STF and Labor Court decisions for workers and companies

The issue of employment relationships is extremely complex. For workers, formal recognition could bring benefits such as paid vacations, 13th salary, FGTS and access to basic labor rights. However, it would also bring limitations, such as the loss of flexibility in working hours and, possibly, a reduction in the number of available positions.

For companies like Uber, 99 and iFood, the requirement to hire workers formally could make their current business model unviable. With the need to pay labor charges and adjust operations, costs would rise considerably, which could lead to higher prices for users or even the exit of some platforms from the market.

Juliano da Silva Prates, 34, works as a permanent motorcycle courier at a bakery and supplements his income by delivering food for apps. He fears that if he were hired on a formal contract by the apps, he would lose the flexibility to balance both roles and would end up with a lower income than he currently earns.

what is at stake?

The controversy is not exclusive to Brazil. In other regions, such as California and the United Kingdom, similar decisions have resulted in changes to app platforms. However, the models adopted vary: while some have opted for total formalization of workers, others created intermediate categories, with specific labor rights for this type of relationship.

In Brazil, the debate is far from over. The ACP against iFood, for example, began in 2019, was rejected in the first instance and only gained strength again with the appeal to the TRT-2.

What will be the future of apps in Brazil?

The question that remains is: will Brazil see the end of Uber, 99 and iFood as we know them? If regional courts continue to contradict the STF, companies may face an increasingly complicated legal scenario, putting the continuity of operations in the country at risk.

On the other hand, many workers argue that a middle ground must be found, guaranteeing basic rights without destroying the flexibility that makes apps an attractive option for both drivers and delivery people.

The decision on the employment relationship could shape the future of work in Brazil, redefining how we understand employment in times of a digital economy. Meanwhile, all eyes are on the Labor Court and the Supreme Court, which need to align positions to avoid a collapse in the sector.

For now, we can only wait for the next chapters of this legal soap opera — and hope that the outcome doesn’t leave drivers, delivery people, users and companies in the lurch.

And you, do you think we are really seeing the end of Uber, 99 and iFood as we know it? Tell us in the comments, we want to hear your opinion!

Be the first to react!
React to article
Register
Notify
guest
1 Comment
Older
Last Most voted
Feedbacks
View all comments
Almir
Almir
18/12/2024 15:21

Absurd taxes are not enough!
Taxing all alternative forms of free income that are already deducted from Brazilian citizens' taxes is the hallmark of this government, it is the state increasingly destroying, in any way, freedom.

Deborah Araújo

I write about renewable energy, automobiles, science and technology, industry and the main trends in the job market. With a close eye on global developments and daily updates, I am dedicated to always sharing relevant information.

Share across apps
0
We would love your opinion on this subject, comment!x