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Decision Organizes Limits of Enforcement and Clarifies How Labor Justice Should Apply Redirecting
The conclusion of the judgment of Topic 1,232 by the Supreme Court consolidated an understanding that reorganizes the actions of Labor Justice, and therefore, redefines how companies and partners can be held liable. The court decided that companies of the same economic group cannot be included in labor enforcement without having participated in the knowledge phase, which alters the recurring practice of automatic expansion of the passive pole.
The decision arose from the thesis presented by Minister Dias Toffoli, which was accepted by the majority of the ministers. The Supreme Court determined that the enforcement of the sentence can only reach companies previously indicated in the initial petition, and therefore, it will be up to the claimant to demonstrate from the outset the existence of joint liability or an economic group.
What the Thesis Established by the Supreme Court States
The established understanding presents three main axes.
First, the enforcement of the sentence cannot be promoted against a company that did not participate in the knowledge phase, and thus, the claimant must indicate in the initial petition all legal entities they intend to include in the passive pole.
In addition, this indication must concretely demonstrate the requirements of the economic group provided for in the Labor Code.
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Second, the court admits redirection in exceptional cases, and thus allows its application only when there is a business succession or abuse of legal personality.
Therefore, the procedure must follow the rules set forth in Article 855-A of the Labor Code and Articles 133 to 137 of the Civil Procedure Code.
Third, the thesis applies even to redirections occurring before the labor reform, and thus encompasses executions previously initiated, except for cases that have already been finalized or definitively archived.
How Labor Justice Practice Was
The inclusion of third parties in the passive pole was common in labor decisions, and thus, many redirections occurred without demonstration of a communion of interests or common purpose.
In several cases, decisions expanded liability solely based on the economic insufficiency of the executed company.
This expansion affected companies of the same economic group as well as partners and managers, which generated insecurity and exposed third parties without a concrete relationship to the debt.
With the new understanding, this practice will become more restricted.
Criteria for Succession and Abuse of Personality
The Supreme Court recognized that abuse can occur due to deviation of purpose or patrimonial confusion, and therefore, these hypotheses will continue to be analyzed by Labor Justice.
In addition, the transfer of assets without compensation may characterize this abuse.
The discussion on business succession remains, and thus, situations involving asset purchases will require careful analysis, as the court did not detail all possible scenarios.
Impacts on Partners and Managers
The new understanding expands the defense space for partners and managers, and therefore, it prevents liability without objective evidence of a link to the debt.
Moreover, the economic insufficiency of the company will not justify redirection, reinforcing the asset protection of third parties.
The possibility of defense in specific incidents creates a more balanced environment, and therefore, reduces the risks of decisions that expand enforcement without consistent elements.
Expected Effects for Companies and Investors
The decision offers greater predictability for corporate operations, and therefore tends to attract investors seeking legal security.
Additionally, companies involved in economic groups will better understand their limits of liability.
The new understanding reduces the automatic expansion of executions, and thus strengthens more technical criteria for labor liability.
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