STF lifts stay in “pejotização” cases

In brief

On June 18th, 2026, the Brazilian Supreme Court (STF) lifted the nationwide stay of proceedings related to “pejotização” (Theme No. 1,389). As a result, cases addressing alleged misclassification may now resume before first-instance courts and Regional Labor Courts (TRTs), although the merits have not yet been decided. Companies should expect increased litigation activity and continued legal uncertainty until a final ruling is issued by the STF.

Key takeaways

• Resumption of proceedings: Labor claims involving alleged misclassification under “pejotização” arrangements will resume nationwide, with hearings, evidence production, and decisions moving forward;
• Continued legal uncertainty: Divergent decisions across lower courts are expected, as the STF has not yet issued a final ruling and the stay now remains only at the level of higher courts.

In more detail

In April 2025, the STF ordered the nationwide suspension of cases addressing alleged fraud in civil or commercial arrangements used in lieu of employment relationships, with the aim of ensuring uniformity pending a final ruling.

This measure significantly affected litigation, generating a substantial backlog of cases. The STF has now determined that the stay will be lifted with respect to proceedings pending before first-instance courts and the TRTs.

Although the merits remain pending, the Court clarified that labor courts may resume the processing and adjudication of these claims.

The final decision in Theme No. 1,389 will be critical in defining the boundaries between legitimate service arrangements and the characterization of an employment relationship under Brazilian law. Until then, companies should adopt a cautious and well-documented approach.